Livestream Shopping is the next big thing in the eCommerce space. Even though people were initially skeptical, Livestream shopping has proven its effectiveness time and again. Livestream shopping is when a company or an influencer advertises their product on a live video stream. Many bands started to invest in Livestream shopping in 2020 because of the global pandemic. However, the model has been in use even before this year. In this article, we’ll show you some livestream shopping statistics and how they can be beneficial to your business.
Livestream Shopping Statistics
While livestream shopping may seem like a phase in marketing, the estimates say that the whole Livestream market is worth more than $60 billion annually. With these numbers, it’s more of a revolution in the modern marketing era than a mere phase.
Started by Taobao in China, Livestream shopping is slowly taking over global markets. We may see more and more brands using Livestream marketing in the coming years. Some brands like GFuel are already embracing the new changes. If you browse Youtube regularly, there is little chance that you don’t know about GFuel.
Some other popular companies like Walmart realized the importance of livestream shopping and did have plans to use streaming applications like Tik Tok to advertise to the younger generations. Even though not all of these efforts were successful, they were effective in attracting regular internet users.
One of the most interesting facts is that around 44% of the people mentioned that they started watching less TV than before because of live streaming. As we all know, the world of marketing is changing rapidly. Very few people are browsing through basic cable, and most TV advertisements have become obsolete. In this time and age, live streaming does look like the best chance for a lot of companies and products.
When you look at the Livestream shopping statistics, it is clear that a trend shift may be unfolding in front of our very eyes. According to a recent study by Forrester, live streaming advertisement spending is expected to hit the 103 billion US Dollar mark in the next two years. At this rate, we may see this number even in the next year.
According to another study, 80% of marketers realize the potential of video streaming and recognize it as an important medium to market products in the coming years.
Livestream Shopping Statistics in China
To know the true impact of Livestream shopping, we need to take a look at the Chinese shopping market. Livestream shopping really took off in the Chinese markets in the past year. One of the primary reasons for this is the pandemic. Ever since the pandemic hit, the company has been looking for ways to change its marketing policies- from billboards and posters to a more digital approach.
Livestream shopping is one of the best ways to do this. The Chinese Livestream marketing industry is expected to reach over 2 trillion RNB by the end of 2021. One of the best examples of Livestream shopping taking off in China is Kim Kardashian’s fragrance brand. She managed to avoid a lot of unnecessary costs on marketing by live-streaming her product to her Chinese audience.
Viya Huang is another major live streamer from China. She has a follower base of more than 74 million users. Way more people will notice your product if it is advertised by such influencers rather than television channels or Youtube videos.
Taobao is one of the major names in the Livestream shopping space in China. It is one of Alibaba’s most successful products to date. The most notable achievement of Taobao is that the sales generated by the application grew by triple digits from 2017 to 2020.
These figures tell us that Livestream shopping is a major phenomenon in some of the most popular countries. Even though marketers in some countries are still using more traditional methods to gain popularity, we may see a massive conversion to Livestream shopping in the coming years.
Another major indicator of the impact of Livestream shopping on the Chinese marketing industry is the number of people purchasing from live video. In 2019 alone, we saw that around 37% of online shoppers in China purchased items from Livestream shopping. Even though recent statistics on this number are not available, these numbers would only have increased with the recent popularization of work-from-home and online learning.
One of the major livestream shopping successes after the pandemic hit is from Tabao’s Single-Day Global Shopping festival. On this day alone, live streams managed to get a total of six billion dollars in sales. This is especially impressive because they are twice as many sales as we saw in the previous year.
All things considered, China may be one of the first few countries to realize the full potential of Livestream shopping. If the current growth rate continues, we may see a massive increase in the number of Livestream shoppers in the coming years. As a result, even more, businesses will adopt this new model, making Livestream shopping the new trend in marketing.
Livestream Shopping Statistics in the United States
One of the crucial things to note about Livestream shopping in the United States is that it is still in the development phase. Other marketing techniques still occupy most of the modern marketing network in the US. However, the country is not far behind China.
Experts estimate that the livestream shopping market in the United States will reach over 11 billion dollars by the end of 2021. It is further expected to grow to more than 23 billion dollars in the next couple of years. Some believe that once companies start adopting the new model, there is no stopping livestream shopping.
Even though the United States’ livestream shopping ‘industry’ may not be as impressive as they are in China, we must look at all the facts here. Livestream shopping entered the United States a tad later than it did in China. Moreover, many American streamers are known to advertise brands of other countries because of their global fan base, which may or may not reflect in the statistics all the time.
If you’re a marketer living in the United States, it is a good idea to consider using the Livestream shopping model. We are seeing the corporate adoption stage of Livestream shopping in the United States, with Walmart partnering with Tik Tok. If the corporate adoption is indeed successful, shifting models now will help you stay ahead of the market when other businesses finally catch up and make the transition to livestream shopping.
A major advantage for marketers in the US could be that a lot of people are already into live streams. Millions of people in the US watch live streams every day on multiple platforms. Targeting these users could help speed up the adoption process. If everything goes right, we may see a massive increase in the livestream shopping shows in the United States in the coming years.
How to Make the Most out of Live Streams
Identifying the right user base is one of the key things to make the most of your live streams. There are many streamers out there who you can hire to get the work done for you. However, as we’ve been seeing in China, the streamer doesn’t always have to be popular. If the product is good enough, we may see the snowball effect bringing more and more people to the stream, leading to more sales.
When you take into consideration all these Livestream shopping statistics, it is clear that live stream shopping is indeed a great way to sell products. Many studies show that this new way of shopping is an indication of the rapid change we’ve been seeing in the past couple of years.
If you’re in the commerce business, it is a good idea to start shifting to the Livestream shopping model soon. If you adopt it before corporates do, you will undoubtedly be successful. You can stay ahead of your competitors when more and more companies finally realize the importance of Livestream shopping.