Live shopping has emerged as a significant trend within the e-commerce landscape, blending the immediacy of real-time interaction with the convenience of online shopping. This innovative sales format has gained traction particularly in the Asia-Pacific region, wherein platforms like Douyin in China have been leveraging live streams to create engaging shopping experiences for users. However, the uptake of live shopping is also becoming increasingly noteworthy among European and American brands, who are exploring this modern approach to retailing.
One compelling example is the success story of Kelsey Krakora, who transitioned from working in a steakhouse to becoming an active participant in the live shopping arena. Initially dabbling in online sales, she fully embraced the concept in 2021, specifically utilizing platforms like Whatnot and Poshmark for her clothing business. In November 2022, Krakora held her first live show with Poshmark, where she unfortunately sold zero items during that debut. However, her subsequent efforts quickly gained momentum, resulting in her selling approximately 100 items per show and generating up to $1,000 in sales on average per event. With a schedule that includes two to three live shows a week, Krakora emphasizes the welcoming and inclusive nature of live shopping, providing consumers with the comfort to shop from home in their pajamas without the hassle of traditional mall visits.
Live shopping functions as a direct descendant of conventional shopping channels like QVC, but it presents an expedited pathway from potential buyers to their desired products. This form of shopping aligns well with the modern consumer psyche, especially for younger demographics who are increasingly turning away from cable television and seeking online alternatives. Recent estimates indicate that the global live shopping market is worth around $32 billion, with fashion, cosmetics, and collectibles being the most engaged sectors. A survey by digital commerce platform VTEX revealed that nearly 45% of U.S. consumers had browsed or purchased from live shopping events in the past year, suggesting a robust interest in the format.
The rise of live shopping can be significantly attributed to the successful integration of social media features, such as Instagram’s Reels and YouTube’s Shorts. Guillaume Faure, CEO of LiveMeUp, noted that these platforms have fueled a keen interest in live shopping, with users enjoying tutorial-style streams where hosts demonstrate products in real-time. While brands are reaping significant benefits from live shopping, some analysts express skepticism about its longevity in the U.S. market. Forrester Research analyst Sucharita Kodali remarked that scaling live shopping is challenging, especially in regions where traditional retail options are abundant.
The stark differences in consumer behavior between markets like China and the U.S. also come into play. In China’s dynamic live shopping landscape, influencers known as “key opinion leaders” (KOLs), like the famed Li Jiaqi or the “Lipstick King,” have established strong connections with consumers through their expertise and credibility. Sucharita Kodali and Jonathan Reynolds, an academic from the Oxford Institute of Retail Management, both noted these disparities while suggesting that live shopping may not hold the same appeal in regions where consumers prefer in-store experiences for certain products.
Nevertheless, the convenience of live shopping presents a double-edged sword. Some consumers may find themselves overspending as they become entranced by the excitement of live events, a point raised by retail analyst Bruce Winder. Brands, however, are actively seizing the opportunity, with notable names like Nordstrom, Samsung, and L’Oreal participating in live streams to present new or discounted products. Public figures such as Poshmark CEO Manish Chandra posited that live shopping builds a community among shoppers present during events, creating a uniquely engaging experience compared to standard shopping methods.
Brands such as The House of Amouage are capitalizing on the live shopping trend based on their successful experiences abroad, particularly in China. Collaborating with Nordstrom, they have implemented live shopping events to better meet customer needs while receiving real-time feedback on product offerings. This convergence of technology and consumerism demonstrates that while live shopping is still evolving, it has the potential to redefine traditional retail, taking advantage of immediate interactions, community engagement, and the digital marketplace to shape the future of shopping.