In the rapidly evolving landscape of retail, live commerce has emerged as a pivotal innovation, reshaping the way brands engage with customers. Often described as the future of retail by Tobi.com, live shopping is not a replacement for physical stores but rather a complementary and economical tool that encourages consumers to visit physical locations after an initial virtual introduction.
In the UK, live shopping is still in its nascent stages, with only a few hundred brands utilizing it consistently. However, its potential is immense, and it is projected to reach over £5 billion in market share by 2025. This growth trajectory is fueled by increasing awareness and the adoption of best practices in the field.
Despite the burgeoning interest, CEOs and retail leaders are clear: live shopping is not a replacement for brick-and-mortar stores. Instead, it serves as a bridge between the digital and physical realms, enhancing the retail experience in both. For instance, a “Red Button” moment can be created by retailers, leveraging digital channels to benefit both online and offline retail.
Looking at established retailers like Marks & Spencer, it’s predicted that they will integrate live shopping shows on social media into their digital ecosystem by 2024. This integration acknowledges the shifting retail landscape, where online shopping, which was almost non-existent in 2001, now accounts for a significant portion of retail spending in the UK. Live shopping, with its ability to forge personal connections that are not possible through static product images, is an extension of this digital evolution.
The effectiveness of live shopping is evident in its results. For instance, Sprii has witnessed a 60% sales conversion rate from live shopping, far surpassing the 2-3% industry averages. This high conversion rate highlights live shopping’s potential in enhancing customer retention and reducing the need for brands to constantly seek new web traffic.
Live shopping also complements traditional retail methods, fostering a symbiotic relationship between different shopping channels. As online shopping has captivated consumer attention over the past two decades, live shopping now brings them back to physical stores, similar to how pop-up stores complemented e-commerce in the 2000s.
Omnichannel strategies are imperative in this new retail era. As consumer demographics, particularly Generation Z, increasingly integrate smartphones into their shopping experience, retailers must adapt to these changes. Live shopping provides control to retailers, allowing them to retain data, own the customer journey, and drive incremental revenue without relying on commission-based platforms.
The future of retail is one of harmony between different channels. Retailers are encouraged to adopt live shopping in 2024 to stay ahead of consumer expectations. This requires a strategic pivot in talent, marketing, and technology, but the rewards are substantial – increased sales, brand differentiation, and loyalty.
In 2024, live shopping is set to awaken brands to new possibilities. The intimacy of live shows allows for the conveyance of values, messaging, and storytelling in a way that static web pages cannot. It provides real-time interaction and personal connections, offering a more exciting and accurate portrayal of products and services.
Live shopping does not threaten conventional retail; instead, it strengthens it. It allows established brands to shine while providing opportunities for disruptive newcomers. As digital and physical channels intertwine, live shopping breaks the assumption of a zero-sum game in commerce. It presents a scenario where all channels can thrive, creatively blending old and new retail approaches.