The pandemic saw a major decline in the footfall of the brick and mortar models when physical retail stores started closing down as the number of cases increased in major parts of the world.
The need to adapt to the online presence was an unsaid rule which every major business or retailer had to adapt to keep the show going. More so than ever, many businesses started spending on digital marketing to create their brand presence in a new medium that was fairly new to them.
Livestreaming e-commerce is a fairly new term for many South Asian markets. A market-like online shopping experience that had taken the Chinese market by storm is now estimated to generate more than $300 Billion in revenue this year. Some global marketers have adapted to the trend and some are yet to see the reaction from businesses.
Kim Kardashian West, the American reality TV star, sold out her entire latest collection in just minutes reaching out to more than 13 million Chinese consumers at the launch of her namesake KKW fragrance in China on Singles’ Day.
This user interaction has been tested to be highly interactive and engaging for many and creates a unique store-a-like experience for the customers. It also creates a shopping experience by showcasing the products as it puts things into context and the host is able to showcase how products look like from different angles and entertain the requests.
In 2020, the first 30 minutes of Alibaba’s Singles’ Day presales campaign on Taobao Live generated an impressive $7.5 Billion in total transaction value. The idea for instant purchasing of a featured product and audience participation through chat has changed live commerce altogether.
Streaming the content which attracts the customers improves the brand appeal and creates differentiation from others. The brand appeal and distinctiveness pull the additional web traffic.
According to McKinsey’s analysis based on iResearch, the value of China’s live-commerce market grew at a compound annual growth rate (CAGR) of more than 280 percent between 2017 and 2020, to reach an estimated $171 Billion in 2021. This growth spurt has been intensified by the COVID-19 pandemic and Chinese sales are expected to reach $423 Billion by 2020.