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US livestream shopping: Ready to take off?
The US has been slower in embracing livestream shopping. What’s causing this lag, and are there signs of a shift on the horizon?
Image by zinkevych on Freepik
Livestream shopping has taken Asia by storm, particularly in China, where 25% of online sales in 2023 occurred through livestreams. Yet, despite its undeniable potential, the US market has been slower to embrace this trend. What's behind this lag, and are there signs of change on the horizon? Let's dive in.
Social shopping vs. transactional shopping
For Chinese consumers, shopping is more than just a transaction; it's a social experience. Livestream shopping, with its blend of entertainment and commerce, perfectly aligns with this cultural preference. It's no surprise then, that live streaming thrives in China.
In the US, however, online shopping has traditionally been viewed as a means to an end, focused on convenience and efficiency. The social and entertainment aspects of livestream shopping haven't quite resonated with American consumers yet.
Influencer credibility
Chinese consumers have a high level of trust in influencers, who often play a starring role in livestream shopping events. Take influencer Cheng, for example, who sold over 10 million units in just 7 days to her massive 531 million follower base! This highlights the immense influence these personalities have on Chinese purchasing decisions.
US consumers, on the other hand, tend to be more skeptical of influencer endorsements. This difference in trust has slowed down the adoption of influencer-driven livestream shopping in the US.
@factsclickk A Douyin livestreamer gained fame for her unique live-selling approach, quickly presenting each product for only three seconds before show... See more
Platform power
Major Chinese e-commerce giants like Alibaba and JD.com have seamlessly integrated livestream shopping into their platforms for years. This makes it easy for consumers to engage and buy products in real time, creating a smooth and cohesive shopping experience.
In the US, major platforms like Amazon and eBay are just starting to experiment with similar features. These integrations are still in their early stages and not as widespread, reducing access to and the appeal of livestream shopping.
Mobile first
China's mobile-first approach to online shopping perfectly complements live streaming, often consumed on smartphones. While mobile commerce is growing in the US, desktop shopping still holds a significant share. This split in shopping preferences is hindering the adoption of live streaming in the US, which thrives in a mobile-centric environment.
Signs of change
There are promising signs of traction in the US, despite Meta's decision to shut down Instagram and Facebook’s live shopping features. In recent years, major players like Walmart, YouTube, and eBay have expanded their live shopping capabilities. Amazon Live has introduced a dedicated channel on Prime Video and Freevee, while TikTok Shop now boasts over 200,000 merchants and 100,000 creators selling through its affiliate program.
Beyond the efforts of big tech and retailers, start-ups like Whatnot and NTWRK are showcasing their close-knit customer communities as a blueprint for success in the US market.
Whatnot is a rapidly growing livestream shopping platform primarily focusing on the resale market, particularly in niche categories like collectables, sneakers, and trading cards. NTWRK offers exclusive product drops and collaborations with popular brands, artists, and celebrities, carving out a niche by focusing on limited-edition merchandise and leveraging pop culture to attract a young, trend-savvy audience.
DTC brands, particularly creator-led brands, have also embraced livestream shopping in unique and creative ways, combining entertainment with limited sales to create FOMO. They are focused on building brand affinity, collecting data, and nurturing relationships, not just shipping products. They often collaborate with smaller creators rather than big-name influencers to build trust and authenticity.
The bottom line
While cultural differences present adoption challenges, there are promising signs for the future of livestream shopping in the US. Innovative startups are carving out niches, while established platforms like Amazon and YouTube are expanding their live shopping features. DTC brands, particularly creator-driven ones, are also leading the way and growing fast.
The most intriguing aspect in the coming years is the potential for unexpected players to ignite adoption. These could be innovative new platforms, niche communities fostered by startups, or even the continued success of DTC brands, whose ongoing success with creative livestreaming strategies could be the tipping point.
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