Livestream Shopping Benchmark Report 2022

The Influencer Marketing Factory, one of our partners, is responsible for bringing you this Livestream Shopping Report. The development of livestream shopping in the US and the UK is thoroughly examined in the report. China has had a livestream shopping frenzy for a while now. It was evident that the Chinese livestream market, which roughly $317 billion in 2021, would serve as the benchmark for the US industry. More than 2,000 people participated in a poll that The Influencer Marketing Factory ran and collected data from. The findings of the study survey are displayed in this livestream shopping report.

This year, livestream shopping has not gained the traction that was anticipated. The USA and Europe still lack a number of essential components that make live shopping a distinctive business model, like qualified Livestream shopping hosts, engagement and incentives, large discounts, and many more. Despite this, it still has the potential to develop enormously. In an ideal world, this would present a fantastic chance for brands, platforms, and artists to outperform rivals and take the lead in their respective markets in the future years.

What is Livestream Shopping?

Brands and retailers use livestream shopping as a platform to advertise and sell their goods in real time. It typically combines shopping and entertainment while fostering interpersonal ties via social media or live-streaming platforms.

It is similar to QVC but is used on a laptop or phone. An influencer, a KOL, or a celebrity frequently serves as the host of livestream events. The practise of making purchases through online streams, also referred to as live commerce or live video shopping, is gaining popularity all around the world.

More precisely, this trend is very new in the US and UK, but in comparison, it is developing more slowly than in nations like China.

Market Size

In the US, live online shopping is anticipated to generate $20 billion in sales by 2022, and by the same year, it is anticipated that live online shopping would generate more than $60 billion in revenue.

The Chinese Market

One of the most favoured categories of live streaming material in China is that which is related to shopping. By 2022, Chinese revenues are predicted to total $423 billion. With a 35% market share and a 32% conversion rate for content on Taobao Live, Taobao is the largest participant in the world.

In 2021, 700 million Chinese viewers viewed live stream, with a 14% annual growth rate. 460 million of the 700 Livestream devotees—or 44.9% of Chinese Internet users—have made purchases using Livestream.

Contrary to live-streaming services in the West, China has completely changed the way e-commerce companies function. For instance, Taobao Live, introduced by Alibaba in May 2016, drastically altered the subsequent wave of e-commerce. China has helped a significant number of farmers and family-owned enterprises flourish during the pandemic because to Livestream.

A Real Bussiness For KOL’S

With virtual gifts, business partnerships, and sales commissions, Chinese hosts can make thousands of dollars. Austin Li, popularly known as “Lipstick King,” is one of the most well-known KOLs (Key Opinion Leaders) and sold $1.7 billion worth of merchandise during a 12-hour Livestream for Alibaba’s Singles Day.

The majority of writers, artists, and entertainers in Chinese culture relied on “rewards” as a source of revenue during the Han Dynasty. The gifting options that we have now among live streams mimic this old custom because rewarding these artists is a sign of high social standing.

For viewers in Tier 1 cities (11%), livestream is a chance to escape loneliness. For viewers in Tier 2 cities (34%) and Tier 3 cities (55%), livestream is a doorway for unknown experiences. This information is important to understand the popularity of live-streaming in China.

How to Leverage Livestream Shopping Activities

In the US, hosts are frequently famous people or influential people (Chinese equivalent to KOLs). It takes a compelling emcee to get a live show going and keep it interesting throughout. It’s crucial to be able to converse with and amuse consumers, respond to their inquiries, and give accurate information about the goods being offered.

In China, hosts unbox and test on things as they are live as well as display them. The abilities required to be a successful Livestream seller differ from those needed to be an effective influencer.

Livestream guides customers to the products so they may purchase them. Customers would never want to miss a good deal because of the endowment effect, which causes people to value a possessed thing greater than its market value. A bundle sale is an illustration of a fantastic offer that customers cannot bear to pass up.

Live Stream Apps in China

Taobao Live

The first Livestream retail platform was Taobao, which debuted in 2016. The live streaming service offers a variety of shopping categories, including those for fashion, cuisine, beauty, and lifestyle. The app received more than 50 billion views in 2021, and the typical watching time climbed by 25.8%. Transaction volume has grown annually at a pace of 16.6%. 71% of Taobao Live’s users are female, and 72% of them are between the ages of 18 and 34.

Kuaishou

More than 85% of Kuaishou users come from smaller cities and rural areas. In 2019, the company offered live-streaming, which increased exposure for less well-known users while also charging less than competing platforms. Kuaishou had quick growth as a result, and by GMV, it is currently the second-largest live-streaming e-commerce site. The revenue from live streaming climbed by 19.1% in the second quarter of 2022, making up 39.5% of the total revenues.

Douyin (Chinese TikTok)

Young consumers like the Douyin Livestream service. In actuality, 88.3% of its members claimed to have live-streamed as of February 2022. Between May 4 and May 25, Lancôme collaborated with 20 influencers to conduct 40 sessions. Douyin Livestreams has approximately 9 million monthly sessions, and its gross merchandise value (GMV) is increasing 3.2 times year over year. Livestream orders climbed 11.2% from April 2021 to April 2022.

We conducted an exclusive survey

The 1,000 US and 1,000 UK respondents who responded to the poll between October 11, 2022 and October 21, 2022 provided the survey data used in this research. We were looking for users between the ages of 18 and 67.

In order to better understand their preferences for livestream shopping, social commerce live shopping behaviour, livestream shopping approach, and overall if and how they shop during a livestream, we conducted research.

Contrary to other nations in the European region, the UK had gained traction with Livestream purchasing in the previous year, therefore we wanted to learn more about their customers. Instead of comparing the two nations studied, one should consider the two markets under consideration. More Livestream platforms, features, and brand adaptation in the Western market.

Our Exclusive Livestream Shopping Survey

After analyzing its results, The Influencer Marketing Factory narrowed down six main findings, which include:

• 36% of those who took part in our poll from the US and 25% of those from the UK said they had made a purchase during a livestream shopping event.
• According to American consumers, the top livestreaming sites for purchasing include Facebook Live (26%), Instagram Live (19%), TikTok Live (18%), Amazon Live (18%), Pinterest (6%), Others (4%) Whatnot (3%) ShopShops (3%) TalkShopLive (2%), and Bambuber (1%).
• The top livestreaming platforms in the UK are TikTok Live (30%), Amazon Live (18%), Facebook Live (17%), Instagram Live (16%), Pinterest (6%), Others (4%) Whatnot (2%), TalkShopLive (3%), NTWK (2%), and ShopShops (2%), in that order.
• The best justification for livestream purchasing, according to respondents in both the US and the UK, was “product quality.” For both the U.S. and UK respondents, free delivery came in second, discount coupons came in third, and being able to check customer reviews in real-time came in fourth.
• In the recent three months, a small percentage of US respondents (27%) spent $20 to $50 on livestream purchases. In contrast, respondents in the UK (31%) reported spending between $10 and $20.
• Compared to conventional online purchasing, livestream shopping is not thought to be “more exciting” or “more fun”.

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