Livestreaming gathers pace in the US – but no-one has yet cracked it

Interactive TV shopping, hugely popular in the US for decades, is slowly moving online in the form of livestreaming – allowing anyone with a phone and an app to sell products for a commission – but getting it right is harder than it looks.

Who’s doing it?

Amazon Live is one pioneer of the format in the US, but it’s far from alone. Instagram allows selected influencers to sell on livestreams via Instagram Shopping, TikTok has livestreamed a shopping event with Wal-Mart, while Estée Lauder and L’Oréal have also used the format to sell their brands.

The context

• In China, livestreaming powers 9%, or $63bn, of the online market and audiences can run into the millions. People with experience of that market believe no US company has quite cracked the formula for success, which they point out requires more than bolting on a video to the familiar e-commerce experience.
• A mix of content, not directly linked to shopping, is needed to pull in new viewers. Chinese retailers, for example, have started using one-on-one consultations and store walk-throughs.
• While consumers appear ready for the format, businesses have yet to concoct a winning formula of right content, right products, easy payment and inventory tools.
• Despite that, the US livestreaming market could almost double to $11bn this year, according to retail and technology advisory firm Coresight Research, as all forms of e-commerce have been boosted by the pandemic and lockdowns.

Soundbite

“Everybody is thinking about this. But they are rushing to it because of the pandemic. Before, they had a choice. Now they have no choice” – Mark Yuan, co-founder of New York-based livestream e-commerce consultancy company And Luxe.

Sourced from The New York Times