From one-to-one interactions to one-to-many interactions, luxury brands can cast a larger net to attract potential consumers
Text | Nadja Sayej
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Face washing is a very personal matter for most people, and Vicky Tsai puts it in a more public place. As the founder of Japanese skincare brand Tatcha, she recently hosted a "sensitive skin care ritual" on video shopping platform Livescale.
Tsai wore a purple loungecoat during the live broadcast, applying makeup remover and speaking to the audience. She said in the video: "We have always believed that skincare is an important part of self-care, let this sweet little ritual really become a part of our serious care of ourselves." ”
Live shopping is like watching a shopping channel while chatting with your neighbors. In China, live shopping has become a multibillion-dollar industry, and a coresight research report shows that by 2023, the live shopping market in the United States alone is expected to reach $25 billion. Coresight Research recently hosted the "10.10 Shopping Festival" online, and several fashion brands participated in live shopping.
Deborah Weinswig, founder and CEO of Coresight Research, said: "U.S. consumers want a more engaging, immersive experience when shopping, and retailers who can adapt to this trend and do well will add an exciting new dimension to their online business, a way to deepen the connection with consumers than anonymous online transactions." ”
The trend of live shopping is undoubtedly on the rise, not least because Black Friday in 2021 is very different from previous years, with more and more luxury brands selling through live streaming rather than hosting in-store discounts. Several luxury brands have joined in during the holiday season, including Saks Fifth Avenue, Switzerland's cigar and skincare brands, and Instagram Shop has also launched new features and recently announced live shopping events with celebrities.
Shikha Jain, partner at Simon-Kucher & Partners, a luxury consultancy, said: "Before the pandemic, luxury sales relied on in-store sales, but the pandemic has made this strategy more difficult. In remote and virtual environments, live streaming is the closest way to replicating this personal experience. ”
Whether it's listening to the founder talk about the company's history while introducing a product, or commenting while watching a model try on clothes, the most important thing is how to tell a good story.
"Brands can now control the delivery of information instead of relying on the salesperson, and can also dig deeper into the information they want to emphasize, such as the craftsmanship, design and story behind each product," Jahn said. Often, when consumers buy a luxury item, they expect those experiences. ”
Data from live shopping platform Livescale shows that the average conversion rate of products sold in this way rose to 17.7 percent in 2021 from 9.5 percent in 2020.
Luxury brands using the Livescale platform include L'Oréal, Lancôme, Tommy Hilfiger and Coyan's, as well as niche brands such as jewelry brand Mejuri and skincare brand Beekman 1802.
Saks Fifth Avenue recently hosted a live event called Saks Live, which offers a virtual shopping experience while bringing some styling tips to consumers. The event is a lot like a creative event, almost like a Christmas market, but each product is very personal.
Emily Essner, chief marketing officer at Saks Fifth Avenue, said: "Live events are a great way to bring an in-store luxury shopping experience to consumers and bring new life to our online business. ”
Earlier in December 2021, model Ash Walker hosted a makeup tutorial on how to create festive glamour, and fashion stylist Allison Bornstein hosted a holiday fashion event.
"With Saks Live, customers have the opportunity to interact with our brand while interacting in real time with some of the most well-known people in the fashion and lifestyle industry," Eisner said. ”
Live interaction is the essence, consumers ask questions to learn more about the product, which helps to reduce the amount of returns, consumers can either customize the product or explore specific details to see which version of the product is best for them.
Bloomingdale's also experimented with this approach, with Sandra Choi, Creative Director of Jimmy Choo, explaining to viewers how to participate in the promotion while introducing the product during the live broadcast: the top 50 consumers who purchased Jimmy Choo shoes during or immediately after the live broadcast will receive personalized design sketches as a gift of thanks (viewers who watched the entire live broadcast received gift cards or gift baskets).
Firework's shopping technology is being adopted by Swiss luxury tobacco brand Davidoff Cigar, which specializes in producing the finest cigars for cigar connoisseurs. The brand placed a live broadcast at the Taj Mahal in India.
Jason Holland, president of Firework's global business, said: "Luxury brands that have joined the live stream include health and beauty care, jewelry brands, watches, and the tourism industry is also starting to do the same, especially luxury holiday destinations. ”
Tourist destinations don't usually have any "entertainment shopping", but it can help the tourism industry. "For example, consumers can see each suite at a resort in St. Lucia through video, understand the size and facilities of the bed-to-bathroom, such as the pool, spa and restaurant, and see the chef's kitchen where the food is prepared," Holland said. ”
Some luxury brand boutiques can only be entered by appointment, and the doorman of the boutique will be prohibitive, which will cause the boutique to lose some potential customers. Now, even at one of new York's gorgeous flagship stores on Madison Avenue, consumers can access their products through live streaming.
"From one-to-one interactions to one-to-many interactions, luxury brands can cast a bigger net to attract potential consumers," Jahn said. Younger millennials and Gen Z are the most important potential customers, they are indigenous to digital and social media, so luxury brands need to be able to appeal to them and make themselves part of the shopping choices of this segment of the population. ”
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Original barronschina articles, not reproduced without permission. For the English version, see "Live Streams Revive 'Shoppertainment' for a Luxury Consumer" on December 28, 2021.
(This article is for your informational purposes only and does not constitute the provision or reliance of investment, accounting, legal or tax advice.) ）
