Livestream shopping in the US
Vtubers are the perfect medium for livestream shopping
Livestream shopping has been taking the world by storm, particularly in China where retail giant Alibaba launched Taobao Live in 2016. However, it wasn’t until the pandemic hit that the concept truly exploded in popularity, as shoppers were grounded and turned to the virtual world for their retail therapy.
The success of this approach was most evident during China’s annual Singles’ Day shopping festival in 2020, where Taobao livestreams generated an astonishing $7.5 billion in transactions in just the first 30 minutes of the event. This was a staggering 400% increase from the previous year! Furthermore, the market for livestream shopping in China was valued at an impressive $171 billion in 2020, and is projected to grow to a staggering $423 billion by 2022.
It’s not just China that’s hopping on the livestream shopping bandwagon either. TikTok, Amazon, Walmart, Shopify, and YouTube are all investing in the game. People are becoming more and more excited about the potential for high conversion rates with this approach, with some experiences delivering up to a staggering 40% conversion rate – a number that’s much higher than what we typically see with regular websites. It’s a truly exciting time for retail, as we’re seeing firsthand how livestream shopping is revolutionizing the way we shop and buy.
Live streaming in China
The world is abuzz with the success of China’s livestream shopping trend. With conversion rates skyrocketing to up to 40% in some cases, compared to traditional websites, people are eager to get in on the action. Additionally, return rates are much lower, as consumers have a better understanding of what they are purchasing.
Shopify and YouTube have recently launched live-shopping capabilities to capitalize on this trend. Livestreamers in China, or “Key Opinion Leaders,” have made fortunes, with aspiring hosts flocking to boot camps to learn the tricks of the trade. The future of livestream shopping is bright.
Live streaming In the US
Livestream shopping has not gained as much popularity in the US as it has in China. According to a survey by Coresight Research, 74% of Chinese consumers purchased products through shoppable livestreams in 2022, while 78% of Americans said they have never even watched one.
Unlike in China, where the focus is on selling to a mass population, in the US, live shopping is driven by the desire to buy unique and meaningful products that cannot be found elsewhere.
This was emphasized by Mai, indicating a fundamental difference between the two markets. While U.S. eCommerce sales reached an estimated $17 billion in 2022, live online shopping is expected to increase its revenues by more than 3 times to $55 billion by 2026.
TikTok, YouTube and Twitch
The trend of live shopping is not limited to just e-commerce and retail giants, but also includes social media platforms. TikTok partnered with Walmart for an hour-long live stream in 2020 that allowed users to buy Walmart fashion items featured by creators.
The event was so successful that they did another live stream in 2021, which increased Walmart’s TikTok following by 25%. Currently, users in the U.S. have to leave the TikTok app to make a purchase, but the platform has started testing a new function called TikTok Shop that allows users to buy directly within the app.
YouTube has also expanded its live shopping capabilities, allowing shoppers to make purchases without leaving the platform. Popular activewear brand founder Cassey Ho had a highly successful sales hour in November 2022 promoting her products live on YouTube.
Cassey Ho, founder of activewear brand PopFlex and fitness brand Blogilates, has a massive following on social media with over 15 million followers and subscribers across all her platforms and over 2 billion views on YouTube. PopFlex and Blogilates are both eight-figure businesses in terms of sales.
Several startups are also joining the live shopping trend in the U.S. Some of them include Ntwrk, which focuses on sneakers and collectibles, and Supergreat and Trendio for beauty products. The biggest among them is TalkShopLive, which hosted 150 live-shopping events in 2022 with celebrities like Dolly Parton, Oprah Winfrey, and Tim Tebow going live.
What’s next for influencer marketing
The future of marketing is already here, and it’s all about virtual influencers and their ability to connect with the Gen Z audience like never before! Imagine combining the power of livestreaming which is what Vtubers are doing now and then engaging brand interactions between VTubers and their audience – brands that jump on this bandwagon early will be at the forefront of a massive marketing opportunity.
With over 15 million followers and subscribers across social platforms and 2 billion views on YouTube, it’s clear that virtual influencers are the way of the future.
ENVtubers.agency is the first dedicated Vtuber influencer agency, so if your a Vtuber looking to break into Influencer marketing or a marketing manger looking for an exciting idea for your brand and potential your product can achieve then contact us here at ENVtubers and join an exciting and dynamic new approach to Influencer marketing!