In China, livestreaming is estimated to have driven about $125 billion in sales in 2020, up from $63 billion in 2019, according to Coresight. In the US, the market was worth about $6 billion last year and could reach $11 billion in 2021, the firm said. It expects the US e-commerce livestreaming market could eclipse $25 billion by 2023.
Facebook has launched “Live Shopping Fridays” for customers to shop beauty and fashion brands via a livestream accessible through the Facebook shop tab. Each Friday, three brands will present their products live around a common theme—Glow Up, New Fashion Finds, and Self Care Spotlight started May 21 and will continue until July 16. Brands like Abercrombie Fitch, Clinique, Bobbi Brown, Dermalogica, and Sephora will be showcasing products, tips, demos, and more.
“The way that we’re thinking about this is that e-commerce has made buying incredibly convenient. So when you have a need, you pull out your phone, purchase, and your order is on its way,” explains Yulie Kwon Kim, Head of Product for Facebook App Commerce.
“But buying is not shopping. And so, a lot of what people do is window shop to see what’s new, for entertainment. You discover something cool that you didn’t know about. When you’re shopping, people often want to hear from a live person, get suggestions, and see the product and context,” she says. “And increasingly, people are discovering and deciding what to buy through social media,” Yulie adds.
She also notes that almost three-quarters of consumers globally are getting shopping ideas through Facebook, Instagram, Messenger, and WhatsApp, and almost two-thirds agree that social media has now become as important as other information sources when making purchase decisions.
Livestream video shopping became publicly available on Facebook last summer, following a series of smaller trials and beta tests. The format gained traction with small and medium-sized brands as well as digitally native brands. A live shopping platform could serve as a significant revenue stream for Facebook driven by selling fees applied at checkout. Facebook waived selling fees through June 2021 to help support small businesses during the COVID-19 pandemic, at the same time conveniently helping Facebook stake its claim on the US livestreaming market.
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