Live shopping: The Future of E-commerce
Why did boomers used to end up watching infomercials after channel surfing for a while? A presenter explaining the benefits of buying a product was more appealing than just watching ads. Nowadays, with the wide variety of entertainment content available on various platforms and social networks, and the increase in digital consumption, traditional teleshopping is being overshadowed by live shopping. This innovative sales strategy – originated in Asia – is based on buying products through live broadcasts on platforms like Instagram, YouTube, Twitter, Twitch, Amazon, or Facebook, and has achieved million-dollar figures in China before establishing itself in Europe and now in Spain.
This reality is supported by significant data. According to a Statista study, streaming commerce in China on the Douyin platform (TikTok) generated revenues of 1.5 trillion yuan. In Spain, the study „Live Shopping in Spain 2023,“ conducted by The Jump in collaboration with the CEU San Pablo University, reveals that live shopping has experienced significant growth of 144% compared to the previous year. Furthermore, most brands have organized between 5 and 10 live shopping events per year. During these events, the audience has maintained an average stay of over 5 minutes, with a notable interaction rate exceeding 30% in most cases.
Teleshopping, with its television format and phone purchasing method, has always been characteristic of Boomers. In contrast, millennials and especially Generation Z are the most active users of social networks and, therefore, of live shopping. Social networks have transformed this concept by incorporating sociability and interactivity significantly. As Carmen Muley, founder and Co-CEO of Stream Plaza, an innovative live shopping platform developed by Secture, explains, „Live shopping is a form of bidirectional communication. During a live broadcast, consumers can ask questions in real-time and receive instant answers. This added value allows for resolving doubts and purchase issues on the spot, ensuring user satisfaction and security with their purchase.“
In this context, a McKinsey study highlights the added value of interactivity and consumer participation in real-time. According to McKinsey, the main reason mentioned by regular live commerce buyers in Europe for participating in this format is entertainment or fun, followed closely by the opportunity to get better prices and offers during live broadcasts.
Furthermore, major companies like Amazon have not been left behind and have launched Amazon Live, a platform for live purchases. Social networks have also joined this innovative live teleshopping model. YouTube, Twitter, Instagram, TikTok, and Twitch have incorporated the option to sell products during live broadcasts. However, Carmen Muley from Stream Plaza emphasizes the urgent need for brands to improve their platforms. She argues that current platforms do not allow for direct purchasing during the live broadcast, but rather redirect from one link to another successively, which greatly lengthens the process and complicates the sale.
McKinsey, in its article „The Show Will Begin! Live Shopping is Transforming the Consumer Experience,“ predicts that by 2026, one in five online purchases worldwide will be made through live shopping. This analysis highlights the great potential of this model, which is completely transforming the television sales industry. According to McKinsey’s study, fashion leads the live shopping sector with 36%, followed by beauty, food, electronics, furniture, and automotive.
In a report by IAB Spain, it is also noted that approximately 70% of industry professionals have already incorporated or plan to incorporate live shopping platforms. This trend not only anticipates a change in our consumption methods but also in our interaction with brands.
Live shopping is undoubtedly the future of e-commerce, offering a unique and engaging shopping experience that combines entertainment, interactivity, and convenience for consumers. As this trend continues to grow, it will reshape the way we shop and interact with brands in the digital age.