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Video commerce Video commerce – what next?
Pandemic restrictions are lifting and people are out and about again. Last year, live-stream shopping was hailed as the magic remedy for retail. The format’s success in China caused quite the sensation. At this stage of the COVID-19 pandemic, however, retailers in Europe are still waiting for viewers to show the same enthusiasm. The hype has died down.
Twelve months ago, live-stream commerce – or video commerce – was all the rage and hailed as a magic remedy for retail. But do you know anyone who signed up for live-stream shopping events and regularly took part?
Experts estimate that this year, video commerce via live stream will account for 2 percent of digital retail around the world at best – including China.
How livestreamer Austin Li Jiaqi is changing e-commerce
Source: KrAsia via Youtube
Europe trailing behind
I believe that live streaming is one of these future-proof trends that was no doubt greatly accelerated by the pandemic, but is losing speed now as consumers return to live events and in-store shopping.
In Europe at any rate, young consumers are engaging more with YouTube, Instagram and TikTok. Perhaps Europe is just slower to catch on. Video shopping is a potentially powerful way to do business, get involved and create a buzz around companies and brands.
China leads
A survey from 2020 revealed that two thirds of Chinese consumers had bought products via live stream in the previous year. Such success can only be achieved with long-term, consistent strategies, and not to mention technology providers with the relevant infrastructure. Maybe the Chinese are also at an advantage because of their super apps, where they can stay in one ecosystem. This would actually then benefit the marketplaces. But even there, the number of video commerce users in Europe is rather modest.
In China, The Future of Shopping Is Already Happening
Source: Alibaba via Youtube
Once is not enough
Like so many things in life, innovations often need a good push. Video commerce is no exception. Those who opt for this format should offer regularly scheduled broadcasts and not see it as a one-off event. The examples from China also prove this: they have dedicated broadcast programmes and users know when their show with their influencer is on.
With courage, perseverance, creativity and communication skills, video commerce can be a profitable segment for companies with manageable costs. And as we’ve seen, it can also help retain customers during crises like the coronavirus pandemic. But regardless, video commerce is a sales format where contact is made with customers right where they are anyway.