Shopping will never go out of style. While the world was stricken by a pandemic, it does not take long for the new age live shopping experience to take over.
What makes shopping so interesting is the experience it brings to the customers. An enriching shopping experience could even convert a passive, contemplating customer into an active, purchaser. The new age live shopping experience is all about blending entertainment with instant purchasing. It is an upcoming phenomenon called live commerce. It is pretty similar to how a cooking demonstration works in a huge grocery store.
Wandering customers would make a beeline to the demonstration spot for the free samples. Product retailers in return hope that customers will make one or two purchases based on the taste samples. The downside to this is that there is no guarantee that the products will eventually reach the checkout counters.
As time passes while shopping for groceries, customers may decide not to purchase the demonstrated products, after all, abandoning them in the shopping cart as the initial taste experience fades away.
THE NEXT WAVE IN E-COMMERCE
The new normal has given rise to the urgent need for retailers to go online. Hence, they did. Now, they need to find a way to attract customers in a new way. That’s where the new age live shopping experience comes forth. At first, there were promotional campaigns of the products, and then there is a live stream broadcast of how the products function in relation to real lives. The first few live broadcast were simply talking about the product attributes. As time goes by, more retailers are enlisting online influencers to talk about the product.
Linking a live broadcast with online shopping takes the cake. Customers get to watch entertaining content about their influencers or the product and also shop at the same time. All these can happen during lunch breaks or while unwinding at home.
In Malaysia alone, live commerce has transformed the retail industry and established itself as a major sales channel in less than five years. Live commerce combines instant purchasing of a featured product and audience participation through a chat function or reaction buttons. In a 2020 survey, two-thirds of Malaysian consumers said they had bought products via live stream in the past year.
VALUE OF LIVE COMMERCE
Live commerce usually contains compelling and engaging content that keeps viewers watching for longer periods. It also converts a customer decision journey from awareness to purchase. Special discounts and coupons are common tactics used to generate a sense of urgency for the customers.
Including a live stream broadcast with an e-commerce store increases a brand’s appeal and distinctiveness. Indirectly it pulls in additional web traffic and can help strengthen positioning among existing customers and attract new ones, especially young people keen on innovative shopping formats and experiences.
THE INSIDE SCOOP
Similar to the cooking demonstration in the physical store, a step by step guide on how to use the product will help the customer understand and realise whether the product is a must-have or not. For example, a model could feature themselves putting on the make-up while talking about the look it desires to achieve. The model could also combine several other products in one session, opening up a cross-selling opportunity.
This is more of a direct approach to promoting a particular product. Product owners or retailers may have a casual conversation with an influencer or a big name on relevant matters where their product can come in handy. Having big names to reiterate a product brand imprints onto the consumer the brand exclusivity or credibility in the long run. The influencer may or may not be a brand ambassador, but more of spreading the brand awareness by also using the product. This approach provides a more natural and friendly call for action to new customers.
Some customers are concerned about how the products are made. Providing such insight may help alleviate these concerns and thus create further awareness of the brand. The approach can vary depending on the target audience. It can be a process of refining the product into its exclusive state or it can feature the ingredients and its source. There are many ways brands can tell this story depending on what their brand promise is.
INFLUENCING THE SHOPPING EXPERIENCE
With the new norm in place, many brands and retailers are rushing to join the bandwagon. The new age live shopping experience is now the minimum customer expectation. The younger segment of consumers such as Gen Z is keener on contemporary and innovative shopping formats or experiences.
Some may argue that live shopping experience may not guarantee a sale, but the possibility is higher due to the entertainment factor. Comparing it to a static promotion on an e-commerce site, where consumers will have to spend precious time reading through the benefits of the product. A live stream of a product tutorial combined with a channel for interaction will increase the likelihood of traffic and possible leads and sales conversion.
DDEC IS READY TO ASSIST
It naturally takes trial and error to get the right content format and variety to suit the target audience. The researching part will also take up some time, but it’s never too late to start and it’s better to start than never at all. Hence, the new age live shopping experience is the way forward.
At DDEC, we offer entrepreneurship development in terms of design relevance and market insights. If you are in need of similar assistance, contact us on WhatsApp 017-6804679 or get the latest information from Facebook and Instagram @ddecmalaysia.