The number of interactions generated by live video is six times that of other video types.
Editor’s note: This article comes from the WeChat public account “德 外 5 号” (ID: dewaiwuhao) , author : Wang Han.
Kleiner Perkins ’recently released” Internet trends “report shows:” In China, nowadays, the hourly revenue from e-commerce live broadcasts has exceeded mobile games, radio and television, and streaming media. , Digital music and other industries. “According to other data, by the end of 2020, the market size of China’s live streaming products will grow from US $ 1.8 billion in 2015 to US $ 15.9 billion. (Source: Single Grain, “What Is Live Stream Shopping”, Author: ERIC SIU)
Domestic e-commerce live broadcast services are booming, so what about the overseas market?
1 Overview of overseas e-commerce live broadcast ecosystem
At 6 p.m. every Thursday, Mindy Switzer Mass, a clothing e-commerce anchor, will appear on FacebookLive ’s live broadcast room on time. The number of users watching her live broadcast with goods will soar to thousands in a few seconds, and the number of user messages is growing faster than the number of viewers.
In the Facebook Live broadcast room, anchors with goods tend to provide users with a unique and more closely-connected corporate perspective in a more user-friendly way, such as showing the company ’s operating mode behind the scenes. Although the picture of e-commerce live broadcast is not as perfect as a brand advertisement, it is more casual and can better reflect the personal style of the anchor. In the live broadcast room, the user and the host can start a dialogue on products, services, company culture and other issues, in a more intuitive way, allowing users to obtain more comprehensive information.
In addition to Facebook, Amazon has also launched a live broadcast service-Amazon Live, and now major brands have poured into the Amazon Live platform to try to bring goods live. In addition, the home furnishing brand Wayfair recently launched a “Wayfair on Air” video live broadcast event. Driven by this event, the number of Wayfair orders increased by 300%, and the brand has also tasted the “sweetness” of live streaming. (Source: retaildive, “Wayfair boosted orders over 300% during Way Day”, Author: Caroline Jansen)
Although there are no phenomenon-level anchors with goods abroad yet, butIt is the niche self-employed with goods that has emerged endlessly. Everyone is rushing to speak for their brands, and they are very busy.
Live streaming brings together mature shopping models such as home shopping networks with live video, content marketing, and KOL marketing. In the United States, the live streaming model established by live streaming platforms such as Facebook Live and Amazon Live has many similarities to the structure of TV shopping channels in the past, but e-commerce live streaming has added some modern unique gameplay.
Picture note: the operation mode of live broadcast with goods (source: commentsold)
As a popular marketing form, e-commerce live broadcast has become an important phenomenon in the industry, like Weiya, Li Jiaqi and other headline celebrities. 100 million yuan. So, where does the magic of live streaming come from?
2 How can live streaming goods gather popularity?
Research shows that people watch live video three times longer than non-live video, and live video generates six times as many interactions as other video types. (Data from Socialmediaweek, “4 Ways Facebook Live Can Boost Social Media Engagement”, Author: Rohan Ayyar)
Users can participate in the live broadcast interaction through real-time comments: they can not only share their opinions on the product in real time, but also raise questions about the product price. In the format of e-commerce live broadcast, it is very important for the anchor to be able to respond to the user’s concerns in a timely manner. A Roosit study shows that if you can’t quickly find answers to product questions, 57% of customers will give up buying online. At the same time, 44% of people are more willing to let real people answer these questions. (Source: Be.live, “Live Sales: How To Use Facebook Live To Sell Clothes”, Author: belivetvtea)
In addition to the advantages of e-commerce live broadcasting in terms of interaction, it is not difficult to find from the user’s psychology that most users are groups that like to share. Will be stingy to recommend it to relatives and friends around. People tend to believe in big V’s “planting grass”. Many live broadcast rooms will also invite stars to help out, forming another form of fan economic monetization.
3 How does e-commerce live broadcast drive sales?
Precision “planting grass” by many anchors allows users to avoid shopping “minefields” and buy their favorite products at a lower price. In this case, for users, live shopping is undoubtedly a time-saving and labor-saving shopping experience.
E-commerce live broadcasting is based on the e-commerce ecosystem, but it has many differences from traditional e-commerce. For example, one of the major characteristics of shopping in the live broadcast room is that it belongs to a form of limited-time shopping. The viewer can only purchase and place orders within a limited time, and the audience in traditional online shopping can even spend a day browsing, comparing And purchase. In addition, when shopping in the live broadcast room, the audience relies on the explanation and display of the anchor and model to understand the product information, and often the real person explanation is more visual than the traditional e-commerce graphic display; in addition, the discount in the live broadcast room is usually stronger E-commerce is higher.
Many users who have experienced e-commerce shopping experience have this experience, that is, the number of products sold in the live broadcast is always limited. One of the common sayings of anchors with goods is: This product is limited in quantity, are you ready? 3, 2, 1 … After hearing these two sentences, the audience’s heart mentioned the throat, and their fingers were suspended on the “buy” button, which was triggered at a touch-shopping in the live broadcast was spelled by hand speed.
Hunger marketing stimulates the audience’s desire to buy. This shopping scene full of competition makes people think of auctions. In order to encourage customers to pay as soon as possible, many live broadcasts have also introduced regulations such as “users place orders within one hour”. In addition, if the customer does not pay within the specified time, the system will automatically cancel the customer’s order, thereby releasing limited products to other users.
Richard Thaler once put forward the concept of “endowment effect”. This phenomenon can be explained by the “loss aversion” theory in behavioral finance, which believes that a certain amountThe loss of utility brought by people’s losses is more than the increase of utility brought by people by the same benefits. E-commerce live broadcast has magnified the sense of loss that users missed products by means of limited inventory. At this time, users are easily converted into highly emotional buyers, who want to try their best to obtain what seems to belong to them. At the same time, users who have not taken the purchase will also be affected by this “competitive” atmosphere.
Conclusion
Live streaming has expanded the concept of the internet celebrity economy, and the anchors have gradually generalized to cover different groups such as internet celebrities, stars, entrepreneurs, and presenters. The form of live broadcast with goods may make the boundaries between e-commerce, social media and entertainment more and more blurred, users freely shuttle in these three fields, and one-stop services are becoming more and more common . Live streaming is growing into a mainstream retail model, redefining the e-commerce industry as a disruptor.