The rise of livestream shopping.

It’s a universal experience: sitting in front of the TV and finding nothing worth watching. The reruns of old shows aren't hitting the spot, and Better Homes and Gardens quickly loses its appeal. So, you switch to TVSN, where charismatic presenters try to convince you to buy a cheugy piece of jewellery for four instalments of $49.99.

What is livestream shopping?

Home shopping channels have evolved, with a noticeable rise in 'livestream shopping'. Brands now use this format on socials to promote and sell their products, often in collaboration with influencers or hosts via the brand’s own accounts. The goal is to create an immersive and interactive experience for consumers, bridging the gap between in-person and online shopping. You can ask questions, request demos, or ask for the dress you’ve been eyeing off to be tried on live—all from the comfort of your couch. Sounds pretty ideal, right?

This concept originated in China, with Taobao, the marketplace of eCommerce giant Alibaba, launching Taobao Live. Since then, livestream shopping has skyrocketed, reaching over US$720 billion in 2023, with no signs of slowing down. Whether it's fashion, makeup, or crystals circulating and sifted through a vibrating bucket (yes, that's real), someone is livestreaming and trying to sell it to you. Add in major discounts, ‘flash sales’, and giveaways that boost engagement, and it’s a win-win situation.

Boosting brand visibility with human interaction.

Despite its success in China, livestream shopping has yet to take off in the same way elsewhere. A study conducted by Capterra found that 19% of consumers have never participated in a live shopping event and have no interest in trying it, as they’re already satisfied with more traditional shopping methods. But, livestream shopping is in its own league, allowing smaller brands to stand out against much larger competitors, who are not accessing every possible touchpoint online. Like TVSN, livestream shopping has its own unique charm, scratching an itch that neither in-person nor online shopping can quite reach. 

Think of early 2010s beauty brands (like frank body) who leapt onto social media before their more established competitors—they captured the attention of young beauty enthusiasts by cleverly riding the social media wave before it crested. Livestreaming may seem niche, just like Instagram seemed back then, but it has the possibility to reach specific audiences and grow into the next big thing.

While we don’t think livestream shopping will revolutionise the retail experience, it does offer interesting insights into how we view shopping itself. Here are some things we noted:

People clearly value human interaction, particularly after COVID-19, when livestream shopping saw a surge in interest due to its interactive, human element. We predict the desire for human interaction comes from the rise of AI. Creating a sense of personable interaction can make consumers feel more connected to the experience. Less boilerplate “Major sale! Limited time only!”, more personal “Look, you now have an excuse to buy that thing you’ve been eyeing!”

How should brands use livestream shopping?

Partnering with the right online influencers also has positive effects on brand association. Consumers who interact with livestream shopping say their preferred ‘host’ is an influencer (34%), followed by an expert on the product (22%) and a celebrity (20%). This underlines how livestreaming hinges on a sense of person-to-person interaction, even more so than salesmanship or expertise.

With YouTube and TikTok both having successful livestream channels, companies and consumers are optimistic that this concept will eventually take off in Australia. Brands are still harnessing the power of Reels and TikToks as an engaging way to market their products to a large audience, experimenting with different trends and sounds to craft the perfect message. Preempting trends before they fully take off can lay the foundation for a successful marketing campaign.

It gives the opportunity to showcase brands, answer questions and have a more personal experience with the products you are interested in. Let’s talk Alpha60, you are interested in the Opal Skirt in Blur but unsure of how it looks while moving, or how long it is. In real time, someone can try it on for you, measure it or even tell you some styling tips based on your vibe. Or, SIR’s Coastline Tie Dress which you could ask about material, stretch or length.

While livestream shopping may not yet be mainstream in Australia, brands must be prepared and agile to jump into this new world of shopping experiences. Aligning the perfect social strategy is key to standing out in the sea of sameness online, and we can help.

And honestly, I would totally buy a cheugy ring for four instalments of $49.99 if it was sold by Tony Armstrong narrating over 2am TVSN. Future livestream marketers, take notes.