Bursting 5 Myths About Livestream Shopping for Brands
COVID-19 pandemic has spurred new retail innovation — seamlessly integrating the online and offline shopping world. However, it goes beyond merely making your products available online. It’s about meeting your customers in online channels.
Consumers today are looking to interact with brands in new ways that offer them convenience and guide their shopping decisions. With physical stores shutting down or operating at reduced capacity, brands are losing out on tremendous sales opportunities.
This is where live streaming comes into the picture. Live stream shopping, or live commerce, enables two-way communication and provides the ability for viewers to buy or save featured products directly from the platform.
Did you know that 63% of people aged 18-34 watch live streaming content regularly?
People are seen going live now more than ever on social media platforms such as Facebook and Twitter. But now, many leading brands, such as Zariin, BeChef, and more, are taking a step forward and implementing live video solutions directly on the website. It allows them to connect with audiences directly and improve their engagement rate.
Despite the obvious advantage of live commerce over traditional ecommerce, many brands, especially small businesses, refrain from using it. Why?
First, brands aren’t fully aware of how to reap the maximum benefits of live commerce with its different use cases. Besides, they hold some preconceived notions about live streaming that stops them from trying innovative ways to sell online.
Thus, we took upon ourselves to uncover top live video marketing myths and show how retailers can capitalize on this path to boost conversions.
Top 5 Misconceptions About Live Video Shopping
1. Only Big Brands and Retailers Can Use Live Commerce
Big companies make headlines about how they are driving a huge number of sales using live video shopping.
German beauty retailer Douglas, which streams several shows a week, reports conversion rates of up to 40%. Or, how reality star Kim Kardashian took to Tmall to appear on a live selling stream and sold 15,000 bottles of perfume in minutes.
But no one glorifies small business success. Many new startups and small-scale businesses like Master Poppins Collectibles, Paisley and more, are using live commerce technology to boost engagement.
Last year, Cyndercake, a platform that sells toys, accessories, and snacks, made more than $60,000 in sales on the livestreaming shopping app.
Another small brand GIVA believes that the use of live video shopping enables a personal touch experience to their customers online. It is an online first premium silver jewelry brand that uses Swirl technology to run live video shopping on its website.
Nikita, co-founder of GIVA, said,“We are seeing a huge shift in consumer demand who prefer product videos over images when it comes to online shopping. It’s just a matter of time that Live Shopping becomes the new normal for the industry, so it’s imperative for brands like us to be an early mover and provide a personal touch experience that is unlike others.”
In essence, companies — big or small alike — can unlock great marketing potential to targeted audiences through these short, interactive experiences.
2. Celebrities and Influencers Are the Only Way to Drive Sales Conversions
Most companies often believe that only big influencers or celebrities can run live videos to sell products.
But the truth is — your consumers are only looking for authenticity. They want someone who can help answer all the questions they have about the product. A good example is Sassy Jones that hosts a weekly live event called the Sparkle Party. In this live stream, Charis Jones, the founder of Sassy Jones, inspires buyers to incorporate bold statement jewelry pieces into their everyday outfits.
She left her sales and marketing job in Fortune 500 companies and launched a fashion and beauty brand called Sassy Jones.
When she first started streaming Sparkle Party, she had hardly 12 views and made $600 from one live stream. By maintaining consistency, she now boasts of 30,000 viewers and the stream generates an average of $50,00 in revenue. That’s huge, isn’t it?
The main purpose of live video shopping is to fulfill the need of missing human interaction from the regular online experience. It enables brands to communicate and interact with their followers and customers.
Businesses can stream live with their brand associates or any member of the team that understands the product inside out. Sure, having a celebrity or an influencer on your live stream can help you bring brand awareness and get some extra views. But it doesn’t necessarily mean it will convert to sales.
Thus, leverage your brand associates and convert them into your brand influencer ( just how Charis Jones did it ). Give your brand the opportunity to combine the personal help of the in-store shopping experience with online convenience.
3. Only Fashion and Beauty Brands Can Attract Audiences on Livestream
This is just another live streaming myth that restricts brands from going live and engaging with their customers. This is generally because we often see high-end fashion or beauty brands such as Maybelline and Burberry launching new products on live streaming videos and being successful.
But the same hype can be equally created by all other brands dealing in products ranging from electronics to kitchen wares or anything you can think of. In fact, this year, many retailers and brands from different sectors are rising and streaming live right from their platform.
For instance, LG Electronics took to the live stream shopping trend this year. The company has laid out a 30-minute episode in a series of live streamed events called The Upgrade, featuring LG products such as refrigerators, TVs, and computer monitors.
The credit also goes to the coronavirus pandemic, where people now prefer the flexibility and convenience of shopping from home. Leveraging live commerce is the easiest way for brands to interact with their consumers sitting at home and build lasting relationships with them.
Most recently, the car sales for the Renault Group dropped in 2020, due to the Covid-19 pandemic. There was an urgent need to replicate the in-dealership car sales experience for their customers online.
They took to live streaming to launch their new Dacia models ( Stepway and Logan ). For three days straight, they streamed a real-life presentation of the cars. It enabled them to engage in conversations that talked about the car’s features and customers’ queries in real-time.
Clearly, the trend of live video shopping has accelerated as consumers are now becoming more aware of it.
In fact, brands from different sectors, such as health and fitness, FMCG, and others, are using Swirl to run interactive live shopping on their platform and drive sales. One such example is ITC Fabelle that deals in luxury handcrafted chocolate creations — using live commerce to offer a highly personalized and curated virtual shopping experience to its patrons.
4. Only Social Media Are the Most Effective Live Streaming Channel
It’s true that the trend of live videos started from different social media platforms such as Facebook, Twitter, and Instagram.
Hosting live events on social media allows a brand to easily leverage influencers and meet the consumers right where they spend most of their time. But today, brands and retailers are experimenting with additional marketplaces and they are using their own website to go live.
In addition, they are using social media to promote their live streaming events by including a link available for swipe up.
Greenberry Organics is a homegrown beauty and self-care brand with a wide range of products. Recently, they partnered with Swirl Live Shopping to launch their new products of natural remedies on their own website. They were able to boost customer interactions by 70% and grow their Add-to-Cart by over 30%.
Despite considerable social media coverage, Greenberry Organics wanted to do more to create a lasting impression and improve engagement with customers.
Well, the main reason for this shift from social media to one’s own ecommerce platform is the lack of ability to track consumers’ journey on social media channels. It is only the use of live commerce technology that enables brands to track all data and understand who is actually attending your live shows and shopping.
You can harness your data to better strategize your campaigns, which wouldn’t be possible from social media. Besides, using live commerce technology allows brands to save these videos on their website for future replays. This helps you to do a lot of conversions even after the live stream has already happened.
Swirls’ Live Commerce technology gives access to real-time engagement analytics, video analytics, and predictive sales — to make smart decisions and optimize your success.
5. Live Streaming Requires a Professional Studio and a Video Team
Brands are of the notion that they need to have a full-fledged video team to host live events. But that’s certainly not true.
Instead, live streaming is significantly easier to do than any other video creation. You simply need to plug live commerce technology into your website or ecommerce platform. Then, log in with your credentials and turn on live to start streaming.
Unlike pre-recorded videos, there’s no expectation from live streaming to be perfect. Viewers are looking for something real that removes the barrier to communication between a brand and the customer.
You can get a smartphone and light ring for better visibility to start promoting your products. You will see how every famous Youtuber today just began their journey using a smartphone to record their videos.
Jeven Dovey — a travel blogger with 708K subscribers on Youtube — even has a video where he shows how you can get started using only your smartphone.
The purpose of live video shopping is to engage with your customers in real-time and build a rapport with them. If you don’t have a video marketing team, fly solo and grab your audience’s attention without any delay.
We’ve also listed out certain practices for live streaming that can come in handy while representing your brand.
According to Coresight Research, the market size of the live streaming industry is estimated to value $25B in the US by 2023. Live commerce is all set to become mainstream in the retail industry.
Retail innovators are using live streaming to attract more customers by adding a personal touch to online shopping. It enables brands to appeal to the uniqueness of their product and bring out brand awareness.
With the global rollout of 5G, we’ll see a massive number of brands — ranging from ecommerce to retail to financial services, to banking to entertainment and education — adopting live commerce strategy into their business.
So get rid of these prevailing live streaming myths and reach out to your consumers in the most effective way possible. Get started with live streaming for free. Sign up today.