Why You Should Livestream Your Business

April 20, 2021

Adding new depths in the marketing industry.

  • The top social media apps in the market now feature live streaming capabilities.

  • Live streaming commerce is when businesses utilise live streams to better market their products.

  • As smart devices become more accessible, the livestreaming market has become an increasingly viable option to tap into.

A livestream is a way for one to connect to a large crowd where they would be able to interact entirely in real time with viewers from all over the world.

Just a few years ago, a livestream was just like any other feature that could be found in most of the top social media apps in the market like Instagram or Facebook. However, some businesses were already beginning to blur the lines between content and commercial activities.

Redefining How We Shop Online

When livestreaming was first integrated into e-Commerce, it gave way to an entirely new platform where businesses could engage with their audiences in a wholly – new interactive shopping experience. Aptly named livestream shopping.

A hallmark to its success was in 2019, when TaoBao, a Chinese e-Commerce powerhouse, raked in CN¥433.8 billion (USD66.7 billion) from live streaming sales; with an added projection of doubling that amount in 2020.

Here’s how it works: a livestream will have a host promoting a range of products, and they will begin describing the product at hand, with each product having a limited time on screen to be purchased by the viewers.

The viewers, when interested with a product, are able to ask questions about the product, (such as the size, benefits, comparisons) via the comment section. The host then responds verbally back to the audiences to better clarify the product. If you think this sounds like it has been done before, that’s because it has.

The Beginning of Remote Shopping

Everything mentioned above was actually pioneered back in the 2000s by home shopping television programmes, and it was a hit!

(Media Prima Malaysian Home Shopping Programme, Image credit: nst.com.my)

Households were virtually transformed into shopping outlets. People could turn on the television, watch an entertaining host run through their catalogue, and just make a call to purchase.

 

 

So what makes livestream e-Commerce any different from home shopping?

An Easier Point of Entry

Back in the early 2000s, if you wanted to participate in home shopping, you would have needed a television and a phone, and these were communal devices—it meant if you lived in a large household, getting your turn for a call might have been a little challenging!

In today’s progression for mass inclusivity, especially in the area of technology, a whopping estimate of 3.8 billion people now own a smartphone. This, alongside seamless connectivity with social media, has opened the gate for entry wider than ever before.

One App, One Shared Ecosystem

As of January 2021, the user base for social media has grown up to 3.78 billion across all platforms.

Just as we mentioned before, live streaming has become an inherent part of today’s top social media apps. This means that users who have an account can easily access the live streams with something as simple as the tap of a button.

This vastly simplifies the process, and in turn improves user experience, removing the need for any third party applications or channels.

Freedom of Accessibility

Going back to the fact that livestream shopping can be done from any smart device, it gives a whole new meaning to the word ‘accessibility’.

The very fact that social media was created to be accessed on the go means that livestream businesses can leverage on the potential traffic that the livestream may receive at any given moment.

What Comes Next?

All of these combined factors signal a trend in an increasingly digital way of life, across multiple sectors.

Livestream e-Commerce, like any other forms of digital commerce, has undoubtedly lowered the entry level for the mass market. But what isn’t really known is that this applies for businesses as well.

The rise in popularity of social media apps and live streaming support is the ultimate tool for businesses looking to expand their horizons in the digital world.

Now, no one expected the latest wave in digital commerce to be livestreaming. This is proof that the market is malleable and subject to creativity in how it runs.

And who knows? Anyone might have the next big idea!