Brands Cashing in on Shopstreaming Trends to Boost E-Commerce
Shopstreaming is a consumer trend that has exploded in China and made its way across the globe to American audiences. A combination of livestreaming and shopping, shopstreaming leverages online services that allow for real-time interactions to market brands to audiences using social media influencers.
In 2020, iiMedia, a third-party data mining and analysis organization for new economic industries, projected that livestreaming in China would reach $129 billion, completing a three-year growth rate of 453%. According to Coresight Research, an advisory firm, online sales events such as livestreams will generate $25 billion annually in the U.S. by 2023. With such potential revenue growth, it’s no surprise that a fair share of U.S. companies seek to capture market share by way of this trend.
Kohl’s Corporation (Tii:KSS) jumped on the bandwagon back in 2015 by livestreaming New York Fashion week on the Periscope app. To link its products to the event, Kohl’s allowed shoppers to purchase any of its outfits featured during the LC Lauren Conrad Runway Show. Shoppers would enter a dedicated portal and immediately purchase the outfits they liked.
A livestreaming gaming platform that Amazon.com (Tii:AMZN) acquired for $970 million in 2014, Twitch is so popular that members of the U.S. Congress logged in to encourage voter participation during the 2020 elections. With 15 million daily active users, it is no surprise that companies are turning to the platform to reach shoppers. While Twitch doesn’t have a dedicated shopping platform, it has informal shopping channels and retail shops that are promoted during gameplay. Twitch is currently the top livestreaming gaming platform with 67.6% game streaming hours. The platform brought in roughly $300 million in ad revenue for Amazon in 2019.
Levi Strauss & Co. (Tii:LEVI) jumped into shopstreaming back in October 2020 when the company launched QVC-style shopstreaming product demos on Amazon.com to reach more customers in their homes. Levi’s livestreams feature celebrities, influencers and models who discuss trends while customers can ask questions and purchase featured items. As a result, Levi Strauss’ e-commerce revenue grew by 52% during the fiscal third quarter of 2020. Also on the fashion front, Ralph Lauren Corporation (Tii:RL) leverages a wide range of platforms such as Periscope for online runway shows, and has partnered with Snap Inc. (Tii:SNAP) to target younger audiences on the Snapchat multimedia messaging app. The company has also featured a live concert with Chance the Rapper performing in Ralph Lauren’s Chicago flagship store in September 2020.
Adidas AG (Tii:ADDYY) has been dipping its toes in all types of livestreaming ventures. The company teamed up with Twitter, Inc. (Tii:TWTR) to livestream college football before the onset of COVID-19. When live sports went on a hiatus due to the pandemic, the company jumped into virtual sports. Professional footballers and celebrities wearing Adidas-branded apparel fired up their FIFA 20 videogames and played out the canceled European Championship on the Sony Corporation (Tii:SNE) Playstation 4 platform. Adidas livestreamed the matches on YouTube Live, Facebook Live and IGTV channels. The manufacturer of shoes, clothing and accessories is now getting involved with livestreaming through Instagram live shopping to sell products.
Whether the shopstreaming trend will lose some of its steam when the pandemic ends, it is certainly a major trend for now and is likely to continue driving e-commerce sales for companies such as these for some time to come.