Online shopping certainly isn’t unaccustomed to capitalising on a big event. Black Friday has become an online shopping bonanza, and for many UK retailers, that’s just the warm-up to Cyber Monday. It’s deals galore for the customers, and all heavily promoted by online stores. People expect discounts, and the online stores deliver to see their traffic surge and sales get a bump at the end of November.
Now, what if this could be harnessed on a more regular occasion, and in a way that has people wanting to pile in on the discount action in a much more immersive way? This is where live commerce could come into play, should a savvy entrepreneur find a way to harness its potential in the British market. In China, this combination of live streaming and online shopping is already estimated to be worth ¥5.86 trillion (£630 billion).
Elsewhere, there isn’t yet such an explosive market, but the draw and benefits are clear to see. In the massive consumer market that is the US, live commerce sales hit $50 billion (£38.5 billion), showcasing the divide between goliath eastern and western markets. The underlying traits can certainly gain traction in the western world, given what we’ve seen from the technology, but work needs to be done on making the experience more desirable.
Utilising Live Streaming in the UK
Easily the most well-known deployment of live streaming in the UK is through social and entertainment channels. TikTok and Facebook have seen millions of people utilise their live video options, and swathes of people tune into YouTube and Twitch to watch streamers perform live. Naturally, these channels don’t seem fitting for a professional outfit like a major retail brand or online store.
One leading digital retailer, Argos, is using live video to enhance its service. Their deployment combines a customer service angle with a pathway to sales. You can call up Argos through a live video to connect to a Habitat furniture expert. From here, you get to see the showroom, the products, see extra details about each piece, and ask for more information. To use it, you just need to book in and make a call.
The same can be said of boiling taps manufacturer Quooker. You can schedule a virtual appointment, join a live stream, and then get a live demonstration from their experts, who are ready to answer any questions you may have. Some other platforms leverage live streams to a degree beyond what is, more or less, a video call. In these instances, the user not only watches live, but interacts live and sees the outcome of their interactions in real-time.
Increasing the immersion, interactivity, and two-way nature of a live stream is what has enabled the live casino experiences from Betway to connect to such a vast audience. In these, users bet on outcomes, see them happen through a live stream to the studio, and then see their wins confirmed in the moment. It’s particularly impressive to see in games like live blackjack, where the players make choices that impact the outcome.
Enhancing Immersion and Desirability
As it stands, the UK live commerce market is very undeveloped. For the most part, it boils down to people flogging stuff on social media. To enhance it, make it more desirable, and make it more professional, entrepreneurs need to examine what the underlying benefits of going live are and how to tap into the customer-driving phenomenon that is the fear of missing out.
As McKinsey writes in its report, live commerce creates value by accelerating conversion and improving brand appeal and differentiation. When it’s done well, a live commerce experience is entertaining, keeps viewers engaged for longer, and increases a brand’s appeal through the quality and excitement generated by a live shopping experience.
Still, for consumers to go out of their way to commit to shopping at a certain time, they need a very good reason to do so. Black Friday and Cyber Monday have created this culture of shopping at the end of November to get deals. This is an angle that a good live commerce offering would take. Having exclusive, in-stream discounts and vouchers regularly enough could integrate a known live commerce event as a Voucherix money-saving tip.
Were a live commerce event in the UK to get enough brands involved and have it be hailed as a money-saving, discount-laden event, it could bridge the gap. While the first would likely still be niche, regular shows with plenty of surprises and bonuses would allow word-of-mouth to generate more interest in the next one.
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