The growth of live streaming e-commerce is another example of changing consumer trends, and can be described as a shopping experience at the intersection of e-commerce, content, and entertainment.
What is live ecommerce?
Live e-commerce or livestream shopping is a new digital marketing approach for retailers that makes live video marketing fully interactive. Incorporating two-way communication and direct purchases, live e-commerce brings online shopping closer to the experience of shopping in person, breaking down barriers to purchase and increasing conversion rates up to 30%, which is 10 times higher than average.
As the technology develops, platforms are offering more opportunities to clients, including incorporating customer loyalty programs and employee benefits.
Livestream shopping emerged as a compelling new approach to e-commerce during the COVID-19 pandemic. An early success in China, live e-commerce is gaining traction with customers and retailers alike, growing by an average of 76% globally from 2020 to 2021 according to Astound Commerce.
Source: TechNode
Who can benefit from live e-commerce
Fashion is the product category with the greatest popularity in live e-commerce, with food and beauty products also proving popular.
Businesses have found many aspects of live e-commerce to boost profitability:
- Reduced consideration period for purchases
- More engagement than other content streams
- Deeper interactions with customers
- Increased conversions
While prominent video sites like YouTube, Facebook and Instagram offer live e-commerce options, businesses can retain more control over their content and data and how it is monetised by using a bespoke solution.
PwC estimates that the proportion of mobile internet advertising will increase to 62% by 20241. Advertising through live streaming e-commerce is expected to drive this growth.
While live e-commerce has established a strong foothold in the Chinese consumer market, the rest of the world lags behind. However, consumer preferences show the fundamentals exist to support the growing adoption of some form of live e-commerce in global markets such as Europe and the US, especially amongst Gen Z consumers according to McKinsey.
Source: McKinsey Gen Z Survey, 2019
Live e-commerce and reward and engagement programs
Livestreaming purchases don't only encourage sales. They also increase brand engagement as loyal audiences associate internet celebrity live streamers with the company. This makes the model highly suited to incorporating with brand loyalty and rewards campaigns.
Leading loyalty and reward provider My Rewards International recently signed an exclusive licencing agreement to provide a complete private label live streaming e-commerce solution to clients through its proprietary rewards platform.
MyRewardStream seamlessly integrates video on demand and streaming services to help businesses acquire customers, retain staff, drive more engagement and generate revenue from advertising and other channels.
1PwC: Global Entertainment & Media Outlook 2020-2024: China Summary
My Rewards International (ASX:MRI)
My Rewards International Limited (ASX:MRI) is a fast-growing global provider of subscription-based Customer Engagement Technologies, including loyalty and rewards programs for corporates and consumers, custom marketplaces and live streaming eCommerce solutions. The company currently connects over 5.8 million members with over 4,500 global, national and local brands.
The Company completed a successful IPO raise at the end of 2021 and commenced trading on ASX in February 2022. To keep up to date with their news and progress, and for more information about loyalty and reward programs as a whole, subscribe to the My Rewards International Limited Chairman's List.
To keep up to date with their news and progress, and for more information about loyalty and reward programs as a whole, subscribe to the My Rewards International Limited Chairman's List.
