In recent years, live shopping has become increasingly popular among consumers, especially during the pandemic when many were unable to visit physical stores. The concept of live, televised shopping was pioneered by HSN and QVC, and has since been adopted by social media platforms like Instagram and TikTok. Livestream shopping events have varied from makeup tutorials and cooking classes, to pet fashion shows and discussions on sustainability in fashion.
American Eagle, Petco, and Aldo are just a few of the big names that have utilized TikTok to engage with their primary customer base. Additionally, many small and medium-sized businesses (SMBs) have turned to these platforms to reach more potential customers than they ever could on their own. More than half of small businesses that have utilized TikTok report a significant improvement in their overall marketing performance, with 78% reporting a favorable return on investment (ROI) from their TikTok advertisements.
However, there have been recent changes to the live shopping landscape. Instagram terminated its Live Shopping feature, which permitted creators to tag products and promote links during live broadcasts, and Facebook made a similar announcement to end its interactive shopping experiment. This move has dealt a significant blow to hundreds of thousands of brands and agencies that rely on live shopping as a crucial marketing tool for product promotion. While creators can still livestream on Instagram, they will not be able to seamlessly incorporate product links during their sessions. This limitation may prompt many creators to move to other platforms.
Some retailers have decided to create their own livestream shopping platforms rather than depending on third-party apps like Facebook, Instagram, or TikTok. Poshmark, Macy’s, Walmart, Nordstrom, and Amazon are just a few examples of retailers that have launched their own Livestream Shopping channels. The back-to-school shows hosted by Walmart featured celebrities, influencers, and store associates, and have been successful in engaging customers.
However, retailers that don’t have the same level of brand recognition as Macy’s, Nordstrom, or Walmart are left to depend on existing platforms, so the potential ban of TikTok may loom large for smaller brands, unless and until someone else steps up.
In conclusion, live shopping has become an important marketing tool for retailers and brands looking to engage with customers in real-time. While recent changes to the live shopping landscape have caused some disruption, many businesses continue to rely on these platforms to promote their products and reach a wider audience. As the world continues to adapt to the new normal, it’ll be interesting to see how live shopping evolves and how businesses continue to leverage this powerful marketing tool.
