Livestream Shopping Is Poised to Grow Even More in 2022

It seemed like every other retailer ventured into shoppable livestreaming this year as a trend that has already overtaken online shopping in Asia gained a firmer foothold in the United States. From Walmart's partnerships with platforms like Twitter and TikTok to new influencer-led channels at Saks, Zappos and Nordstrom, 2021 was a year of experimentation when it came to creating new spaces for influencers to peddle products over real-time video. But experts say the trend still has a long way to go here in terms of consumer adoption and availability before it becomes the same phenomenon as it has in China, where the concept first originated a few years ago. "It still seems that compared to China, U.S. brands are still learning the territory," said Liel Anisenko, head of marketing at shopping livestreaming platform Buywith, which has managed streams for brands like Zappos and Forever 21. "But we've seen in 2021, definitely a lot more brands experimenting with it, and getting into this field." "Even though they might not still be fully on board with shopping just through livestreams, they understand that this is a very strong trend, and it's coming and it's here to stay," she added. ‘And Just Like That’ Costume Designers Show Off Thrifted Fashion Research firm Coresight Research forecast that the U.S. livestreaming market would reach $11 billion this year and grow to about $25 billion by 2023. By comparison, the firm expected China's livestream-shopping industry to reach $300 billion this year. A recent survey of senior marketing leaders from Gartner Research found that about 26% are focused on livestreaming retail as a priority right now, and Gartner analyst Ant Duffin expects that number to double in the next 12 to 18 months. Livestreaming taking divergent paths Duffin said this growth is happening on two fronts. One is the social platforms like TikTok, Instagram and Facebook that are rolling out more tools to make it easier for users to buy things that they see on the screen during a live video stream. And another is through the retailers themselves, who are beefing up their own tech with support from a host of new startups that have cropped up to provide the infrastructure for these efforts. "What you're starting to see more and more now, especially in the livestreaming space, is a proliferation of the different executions of livestreaming," Duffin said. "So you're starting to see livestreaming through social platforms with the ability to buy things, like TikTok and their partnership with Shopify. But what you're also seeing is the retailers starting to really step up their capabilities to provide livestreaming services to brands and leverage influencer talent." Maximizing audience According to a recent report from Buywith, the retail companies that have seen the most success thus far in livestreaming have a few key factors in common: a knowledgable host who's able to maintain engagement with viewers, promotion of the stream across different channels and exclusive offers that incentivize sign-ups. While livestream shopping is often compared to shopping TV channels like QVC and HSN, Anisenko said the new model takes a different set of skills and tech than those analog predecessors, many of which retailers have yet to master. Hosts must be able to communicate in a manner that seems less slickly produced and dexterously field questions from integrated live-chat functions. Retailers must determine the best way to present and promote the stream to reach the biggest audience and maximize sales. One way to expand audiences is to broaden the swath of people who are reachable through these kinds of videos, Duffin said. While streaming is most commonly targeted at digital-savvy generation Z and millennials, experiments like Home Depot's renovation content shows how younger people don't always have to be the intended audience. "Maybe there was this thought process, that live shopping is more for younger generations," Duffin said. "But now what you're starting to see is brands, like Home Depot, really trying shopping events for the older generations, where you're showing ... how to carry out your DIY activities." Building to an inflection point Ecommerce analyst Zach Weinberg, vp of ecommerce at performance marketing network Reprise Digital, said that while livestreaming is poised to grow even more in the next year, it will take a couple years before it reaches the inflection point at which it will be as commonplace of a way to buy things as it already is in Asia. "For the next two to three years here in the United States, we're going to talk about it, and we're going to recognize it as a trend," Weinberg said. "But it's going to take at least that amount of time for this inflection point to happen where its penetration, let's say, reaches even above 10% of purchases done through live shopping. So I think I think we're very much at the early end of that curve."