How agencies are testing live shopping and seeing potential in accelerating conversions

The rise of content creators and social commerce has sparked the growth of livestream shopping, reminiscent of the QVC shopping channel era. However, instead of traditional television networks, this shopping phenomenon takes place on social media and retail platforms like Walmart and Amazon. Livestream shopping presents an opportunity to boost conversions by combining entertainment and immersive content. Companies have reported conversion rates of nearly 30%, ten times higher than conventional e-commerce, by leveraging tactics such as limited-time offers and exclusive products. In China, livestream shopping reached a staggering $497 billion in 2022, while the U.S. market reached $20 billion, expected to grow to $68 billion by 2026. Agencies in the U.S. are now beginning to test these commerce features with increasing interest from clients, particularly in showcasing products that require more explanation, like technology or makeup tutorials. Apparel and fashion dominate the livestream shopping category with a 35.6% share, followed by beauty products and food. Successful examples include Tommy Hilfiger’s livestream in China, which garnered an audience of 14 million and sold 1,300 hoodies in just two minutes, leading to expansion into Europe and North America.

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