Next-Level Commerce

A LOOK AT THE EVOLUTION OF LIVE SELLING AND INTERACTIVE SHOPPING.

BY INDIA LOTT AND KELLY RAVESTIJN

From the door-to-door vacuum salesman of the 1950s and 1960s, to the 1980s-1990s heyday of cable shopping channels, to the live commerce happening today on social media, consumers have always been willing to engage with a sales pitch.

Although QVC and HSN are still going strong, in 2023 live and interactive selling occurs primarily on social media platforms. It is evolving in ways brands and retailers have yet to fully recognize. We defi ne the live shopping category as showcasing your product through livestreams and allowing customers to ask questions and purchase in real time. As consumers seek greater convenience, a return to in-store prominence and new ways to use technology to shop, live shopping is poised for transformative growth.

This latest iteration of interactive shopping on social media is a tactic that fi rst gained traction in 2021 in China, pulling in an estimated $300 billion in revenue. Those numbers are backed up by analysts that predict live shopping sales might make up 20% of all e-commerce sales by 2026. Additionally, the livestream e-commerce market is predicted to reach $35 billion in 2024, which is a threefold increase from 2021.

Although now is the time for U.S. brands and retailers to up their live-selling game, some of their live tactics are lagging. One reason could be that consumer shopping has evolved faster in China than in the U.S. Live selling in China is treated like an event — complete with intricate production sets, live music, sound effects and New Year’s Evetype countdowns to the start of shopping events.

The U.S. hasn’t picked up on that, which is ironic given how Americans love a spectacle. Once retailers and brands dedicate the time and resources to building an interactive shopping platform that’s exciting and fun, then we will see success in the U.S.

Live-shopping success is not simply a matter of shifting resources. It should be viewed as another platform you need to promote and drive traffic toward. In the same manner the budget is allocated across media channels, that needs to be done with interactive shopping as well.

Consumers want convenience, and brands need to shift their strategy to address it. Creating an exceptional customer experience is key.

Some brands are encouraging “window shopping” with QR codes that let consumers purchase while on the go. Consider how recently shoppers in New York were able to purchase products right from store windows. TalkShopLive included a live feed and QR code that allowed shoppers to access products from the street in real time for purchase.

The rise of interactive commerce might raise concerns from retailers, but ultimately they are mostly concerned with their bottom line. The goal shouldn’t necessarily be to bring consumers back into physical stores, but to provide them with a seamless shopping experience — whether in store, online or on a livestreaming platform. This is necessary to drive brand loyalty. Having the ability to purchase via a QR code while walking down the street is simple and easy, as opposed to entering a store, searching for the product, waiting in line and fi nally completing the purchase.

Remember, that knock on the door is not coming from a traveling salesman, but from your customers who are ready to buy from their couch. It’s time to answer the door and invest in new ways to enter consumers’ homes via technology.

About the Authors

India Lott is vice president, strategic planning, at Advantage Unified Commerce (AUC). She is a senior marketing executive with more than 15 years of experience in digital marketing, with an emphasis on elevating external client and internal corporate business performance.

As senior vice president of strategic planning at AUC, Kelly Ravestijn is responsible for strategic leadership across key accounts and the development of the agency’s strategy team.