This article is part of a larger series on Retail Management.
Livestream selling is a marketing technique in which businesses hold real-time virtual shopping events to showcase and sell their products to customers. It is a great way to deepen your connection with your customers, expand your reach via influencer partnerships, and potentially boost your conversion rates.
The most familiar example of livestream selling is the QVC home shopping network. While that particular live commerce outlet has been struggling to appeal to younger generations, new livestream shopping outlets are growing rapidly. Influencer partnerships, Facebook Lives, YouTube streaming, and more are becoming increasingly lucrative sales channels across the globe.
This article will look at the most recent livestream selling statistics and trends, so your business can take advantage of this new and powerful retail trend.
1. The livestream market is estimated to be worth $35 billion in the US by 2024
According to reporting by Retail Touchpoints, a 2020 study from Coresight Research estimated that the US livestreaming market would reach $11 billion in 2021—nearly double its 2020 value. Then, by 2024, it estimates the market will be worth $35 billion in sales (3.3% of all US ecommerce).
2. China’s livestream selling market grew from $3 billion to $171 billion in three years
While livestream selling is still in its earlier stages in the US, this sales channel has already made huge waves in China. And if China’s explosive livestream shopping growth is any indication, livestreaming sales could account for as much as 20% of all ecommerce in the US by 2026. It is clear that livestream shopping has huge long-term potential for brands and ecommerce platforms alike.
3. Apparel and fashion accounts for 36% of livestream shopping events
With 36% of livestream selling events for apparel and fashion, it is the most common live commerce category by far. It is followed by:
- Beauty (8%)
- Fresh food (7%)
- Consumer electronics (5%)
- Furnishing and home decor (4%)
- Automobile (<1%)
4. YouTube is the most popular live commerce platform in the US
With Facebook and Instagram close behind, YouTube is the most popular livestream shopping platform among US retailers, with 30.2% of businesses using the platform in 2021.
5. 78% of businesses use live commerce to build deeper connections with their customer base
While there are many potential benefits of live commerce, like collecting customer data and boosting conversion rates, the top reason businesses utilize livestream selling is to have deeper interactions with their customers. Businesses also use livestreaming to:
- Make their videos more accessible (66%)
- Humanize their brand (59%)
- Engage on social (57%)
- Convert at higher rates (28%)
Want to learn more about retail marketing strategies and how they can boost your business? Check out our retail marketing guide.
6. 80% of marketers think livestream commerce will be an important part of sharing products in the coming years
While livestream shopping is still emerging as a major shopping avenue, the expert consensus is that in the next 10 years, live commerce will be an important part of engaging with customers. In particular, it will be valuable for sharing new products and services.
7. Companies report live commerce conversion rates are up to 10x higher than conventional ecommerce
With the ecommerce retail market more saturated and competitive than ever, companies that use livestream selling strategies are seeing conversion rates of up to 30%. That is 10 times higher than the average ecommerce conversion rate.
8. Livestream selling has a 70% conversion rate average for luxury goods
With livestream shopping providing a more detailed look at products, it is an especially effective sales channel for luxury goods. In fact, on average, luxury goods have an average of a 70% conversion rate when showcased on live commerce platforms.
9. There was a 76% increase in livestream shopping purchases during the pandemic
As people were forced to stay home and shop online during the pandemic, livestream shopping grew tremendously. In fact, between March 2020 and July 2021, Astound Commerce found that, globally, there was a 76% average increase in live commerce purchases.
10. There is growing interest in livestream shopping among American consumers
While livestream shopping’s strongest hold lies in Asia, there is a growing interest in livestream shopping among American consumers. Just over 10% say that live commerce would make them more likely to use social commerce and nearly 15% express interest in livestream shopping in general.
11. 17% of US consumers frequently watch influencer shopping livestreams
A study from Insider Intelligence found that 17% of consumers in the US frequently watch influencer livestreams. This represents a huge, engaged audience that already has a rapport with who they are watching. Taking advantage of this space will be increasingly important for retailers in 2022.
12. 28% of shoppers said more livestream commerce would encourage them to buy through social
Nearly a third of global consumers think additional livestream shopping opportunities would encourage them to buy through their social channels. In other words, if the option was more prevalent, they would likely partake.
13. 66% of global consumers wish retailers would be more digitally innovative
While there will always be some hesitation around the newest innovations in commerce, the great majority of consumers still welcome our new digital era. In fact, globally, 66% of consumers want retailers to be more digitally innovative. Digital opportunities like livestream shopping are great ways to capitalize on this desire.
14. 60% of shoppers who tried livestream shopping said it improved their shopping experience
While the sales channel is still in its early development phases, livestream shopping is proving to have a strong impact in terms of consumer sentiment. In fact, Klarna found that 60% of shoppers that have used livestream shopping found that it made their experience better.
Livestream selling is an up-and-coming sales channel for retailers. While still in its early stages, in China and several other countries, we have already seen live commerce take rapid leaps in penetrating the retail market. In the US, there are signs we will soon experience the same phenomenon. Understanding the important facts and figures related to livestream shopping can help your business take advantage of this new opportunity.