WHY ARE GEN ZERS EMBRACING LIVE-STREAMED COMMERCE?
Live-streamed shopping has experienced huge success in China among young consumers, prompting brands around the world to pay attention. But why exactly is this mode of browsing and buying so appealing? And how can businesses use this medium for more than just marketing products?
Location United States
Featured Experts
Disha Daswaney
Disha Daswaney is a global fashion and luxury expert, freelance trend forecaster, and lecturer. After working in publishing and trends in Europe and Asia for 11 years, she launched creative agency Konkrete to help develop business strategies.
Jesse Caesar
Jesse Caesar is an insights specialist and moderator who brings the customer into focus for companies across an array of sectors. At Jesse Caesar Consulting, he develops bespoke research and brand-building solutions for global leaders, start-ups, creative agencies, and other research firms.
Andrea Richeson
Andrea Richeson is a New York-based consumer anthropologist who specializes in youth culture and brand fandoms.
Author
Lara Piras
Lara is a writer, trend researcher and strategist based in London. Considered a youth culture expert, her vast industry knowledge comes from working with some of the industry’s best including MTV, Vogue UK and Vogue US in New York. She has previously worked on youth research projects for big brands including Nike, adidas, ASOS, Facebook and Peroni. Lara has an eye for spotting future innovations and trends early, teamed with a love of photography, writing and researching.
Highlights & Data
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Live-streamed shopping caters to a desire for guidance when buying online, with the real-time nature lending an air of authenticity to product promotions
The format may provide a new revenue stream for influencers, who can develop
84% of Gen Zers say they would trust a company more if it used actual customers and real people in its adverts (WP Engine, 2019)
When discovering new brands, 48% of 18- to 24-year-olds say they’re influenced by
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close-knit communities by offering tailored tips to audiences
Some brands have used live streams and social media during the pandemic to help foster a sense of togetherness, potentially boosting long-term loyalty
a brand’s social media activity (The Atlantic, 2019)
55% of Zers say that they'll continue to buy new brands they discovered during the pandemic after the crisis subsides ( Morning Consult, 2020)
Scope
Live-streamed commerce is yet to fully make its mark in the Western world, but major players are paying attention. For instance, Amazon’s reality TV show Making the Cut sees 12 designers take part in weekly challenges to win $1 million to invest in their brand, with the week’s winning outfit instantly available to buy on Amazon’s dedicated store. ShopYourTV, meanwhile, blends retail and entertainment by sourcing items and outfits from consumers’ favorite TV shows. And according to fashion and luxury expert Disha Daswaney, the long-standing appeal of QVC “originates from a sense of escapism and distraction but has also become about enabling conversations where people share and connect over things they are passionate about.” [1] This plays out in the data too, with research from 2017 suggesting that 80% of people would rather watch a live video than read a blog. [2] “While online shopping has seen a meteoric rise over the past year, the scroll-and-add-to- cart process is missing an important part of the shopping journey – the thrill of discovery and copping exclusive highly sought after products,” says consumer anthropologist Andrea Richeson, hinting at one of the main reasons why live-streamed commerce is on the rise. [3]
This way of shopping is already popular among Gen Zers in China – where the market was estimated to be worth $170 billion in 2020 – with influencer power helping to guide consumers on e-commerce channels. [4] “China has the most sophisticated influencer industry,” says youth insights specialist Jesse Caesar. “Their key opinion leaders (KOLs) command the biggest followings and work on platforms with seamless e-commerce integration. Live-streamed commerce is just another touchpoint for KOLs to push products. Brand badging plays an outsized role in social dynamics in China. As arbiters of what’s cool or what’s premium, KOLs can help domestic brands pull ahead of foreign luxury players.” [5] Many of these live-stream hosts and KOLs have developed significant power and influence in the sector. For example, Viya, known as the live stream queen of China, draws millions of viewers each day, reportedly earning ¥30 million in 2018. [6]
Not only does this concept offer an opportunity for social platforms like Instagram, Facebook, and TikTok to create new revenue streams, but it may also push brands to rethink their customer outreach. “Brands need to find out where their consumers are most receptive – not just where they hang out – and what kind of messaging is going to resonate in that context,” says Caesar. “Instagram, Twitch, and TikTok all have their own rules of engagement. Brands who know how to act appropriately in these digital spaces can also take advantage of on-demand insights to optimize their message and product.” [5]As an example of a best-in-class model, Daswaney suggests looking to Alibaba’s AliExpress Connect , which “financially rewards consumers who create
content that helps brands sell products.” [1] Once users have enrolled, they’re asked to share ready-made content and promo codes on social media, after which they can then ‘level up’ by completing other tasks to gain access to campaigns that offer higher remuneration. As the shopping landscape evolves to become more interactive, how can businesses harness the appetite for live-streamed entertainment in an authentic way and engage brand communities beyond sales?
Live-streamed content is lit
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As evidenced by the mainstreaming of Twitch, big fashion brands broadcasting fashion week shows online, and the rapid rise of OnlyFans, people have become accustomed to live streaming in their day-to-day online activities. Richeson notes that this has been driven by mobile-first behaviors in the entertainment space, particularly among Gen Zers. “Gen Z has been primed for this kind of participatory online shopping,” she explains. “They literally grew up watching kids on YouTube open up Kinder eggs, fellow sneakerheads review the new Lebrons, and countless haul and unboxing videos from teen influencers – all from their smartphone screens. Live-stream shopping is the next step in this social-based, influencer-curated shopping experience.” [3]
“These concepts that really promote interactivity with live show hosts are cementing a sense of community as consumers can connect with brands via in-depth conversations,” says Daswaney. [1] To stay ahead in this space, she feels it will be important to have natural conversations and move away from an old-school, QVC-type mentality, which feels overly rehearsed. After all, 84% of Gen Zers say they’d trust a company more if it used actual customers and real people in its ads.
[7]“This new mode of connection gives fans a voice or capacity to adapt broadcasts to personal preferences, which will be [important] as consumers will be drawn to activations with a heightened sense of personal control,” Daswaney adds. “When there are hosts, shoppers can really connect with them over conversations about topics like their struggles, which is why these types of live streaming sessions are and will continue to be more successful.” [1]
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The lack of polish on live streams lends an air of authenticity Liza Summer (2020) ©
Brands are working harder to create community
The closure of physical retail spaces due to the pandemic has pushed some brands to work harder to create digital communities for their customers. They’re responding to a desire for togetherness amid a lack of IRL engagement, and building a social media community may simultaneously boost their profile and their business. Indeed, when discovering new brands, 48% of 18- to 24-year-olds surveyed in 2019 said they were influenced by a brand’s social media activity, which ranked just slightly behind recommendations from friends or peers (55%). [8] “A community takes the brand relationship not just beyond the store, but beyond the product as well,” says Caesar. “When you command a tribe, you’re in a better position to take advantage of new sales channels like live streaming.” [5]
One brand that’s making new relationships this way is Walmart, which has brought live-streamed fashion shopping to youth-led platform TikTok. In December 2020, the retail giant hosted the first shoppable live stream on the social channel, enabling people to buy Walmart fashion items spotlighted in videos by TikTok creators without having to leave the app. Meanwhile, Bleach London has launched an array of interactive digital content to keep its customers engaged during dry periods as a result of the pandemic. First, there was ‘ Hair Party’, which had celebrities such
as Georgia May Jagger, Maisie Williams, and Pixie Geldof share their hair dye stories, and that was followed by Bleach Hair Line and Bleach TV, a series of digital guides and consultations on at- home DIY coloring. “There is something really enticing about watching one of your favorite content creators or brands, whose style and ethos you are just mad about, offer up their products and insights with a bubbly enthusiasm and relatable affinity,” says Richeson. [3]
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A sense of social connection can help keep customers loyal Rodnae Production (2021) ©
See-now-buy-now has moved beyond the catwalk
Digital-first experiences have bridged the experience-action gap when it comes to purchasing, with live streams taking shoppable social media feeds to the next level. Highlighting the potential of this retail channel, Talkshoplive raised $3 million in funding in February 2021 to continue growing its live social shopping network. This entertainment-meets-shopping platform blends brands, artists, products, and celebrities such as Alicia Keys and Oprah Winfrey, all with the aiming of helping creators and businesses get closer to their customers. [9] There’s also Klarna Livestyle, a digital fashion show experience that combines live entertainment with social shopping.
Alongside these high-profile efforts, there are smaller communities starting to smartly play within the Gen Z sphere, such as Agora, an app that sells beauty products in limited quantities. It enables beauty fans to create short-form shoppable videos to earn ‘coins’ for free products based on their sales. The platform focuses on both influencers and beauty fans, all of whom create content featuring their favorite products, and encourages make-up tutorials and unique interactions between influencers and consumers. Meanwhile, from a fashion perspective, there’s Monkisphere, an online community space for youth fashion brand Monki that allows brand fans to bond over personal style preferences. Shopping questions are answered by other members and there are clothing mood boards that can be shared with specific customers.
“These entertainment platforms create a smaller hangout-type vibe that builds a more meaningful bond, which is really being driven by a consumer desire for less toxic online interactions,” says Daswaney. “This is about creating a seamless shopping experience with your virtual friends. It is bringing together the power of entertainment and trust directly to consumers’ devices.” [1]
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Live streams offer fashion influencers a new way to earn Digitaling (2020) ©
Insights and opportunities
Social selling can translate to consumer loyalty
As a generation that prioritizes ethical standards when making buying decisions, Gen Zers want to have a deeper engagement with businesses beyond their products. “These young shoppers also want to support their favorite content creators and purchase from them directly,” says Richeson. “Could a shopper find these items on Amazon, eBay, or Depop? Likely, but to Gen Zers, paying a little extra makes it worth it if they know it supports the endeavors of people they admire.” [3] With 55% of Zers saying they'll continue to buy new brands they discovered during the pandemic after the crisis subsides, there’s an opportunity to build longer-term loyalty by promoting the human elements of a business. [10] That said, there’s still a desire for exclusive products that create clout. “There’s a bit of a fun (or ruthless) competitive angle to these live-streamed ‘claim’ sales,” says Richeson. “Many times the items on offer are either complete one-offs or only available in small quantities. Live streams are, in many ways, like live auctions. If you want it, you have to go for it, because if you hesitate, you may miss out. The ephemeral nature of these online events has the potential to create a hype frenzy, only elevating the demand for products of desire.” [3]
Community is becoming more important
With social media being a key channel of discovery for Gen Zers, live streams on platforms such as Instagram and TikTok can offer brands a chance to go beyond visual storytelling and directly connect with customers. “It’s truly the success of social networks that has shown us that communities can also be built on new platforms, including those for shopping,” says Daswaney. “With these platforms, it’s a way for consumers to feed their passions and connect with other obsessives, along with influencers, in a more intimate way. These spaces tend to be dedicated to their purpose but are also seen as more authentic. Plus, with virtual socializing being extremely important, [it’s vital to] embrace this landscape of virtual shoppable hangouts to engage with consumers who will be increasingly undeterred by geographical limitations.” [1]
The rise of the presenter influencer
According to the 2020 State of Influencer Marketing report, 56% of brands globally say they use their consumers as influencers, with user-generated content often deployed in their campaigns. [11] “[This] tactic of connecting via more relatable content is likely to continue in a post-pandemic landscape,” says Daswanwey. PopShop Live is helping millions of people create their own live streaming e-commerce success stories, allowing sellers to both connect with their shoppers and sell products in a way that feels fresh and engaging. Daswaney believes that it’s these presenters, or shopping influencers, that brands really need to invest in “because they tend to be loyal consumers of brand communities. Essentially, they would be classified as nano-influencers.” [1]
Podcasts can keep authenticity within presenter-led ads
While the live streaming format is usually associated with video, the rising popularity of audio may open doors for live selling across formats. The presenter-led style offers a more ‘authentic’ form of selling that feels more personal and playful than traditional ads. With Spotify reporting that 25% of its user base engaged with podcast content in Q4 2020, it’s a media avenue that’s increasingly
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worthy of brands’ attention. [12] “Despite infinite on-demand video, lots of people just want to listen to other people talk as though we were back in the golden age of radio,” says Caesar. “Presenter- led ads harken back to an old-school style of advertising as well. Often, a single brand will sponsor a whole show that commands a captive and intently listening target. By personalizing the brand, a host lends it legitimacy, and by folding it into a story, makes it memorable. The effect is akin to word-of-mouth from a trusted friend.” [5]
Sources
1. Interview with Disha Daswaney conducted by the author 2. Vimeo Livestream (2017)
3. Interview with Andrea Richeson conducted by the author 4. CNN (September 2020)
5. Interview with Jesse Caesar conducted by the author 6. Bloomberg (June 2020)
7. Ad Age (April 2019)
8. The Atlantic (February 2019)
9. TechCrunch (February 2021 10. Marketing Dive (August 2020) 11. Launchmetrics (April 2020) 12. Variety (February 2021)
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