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The livestream mainstream


THE LIFE AND SCROLL OF THE PARTY


By combining two-way live interaction with a seamless route to purchase, livestream shopping is the next big e-commerce opportunity for western retailers and brands


F


or beauty brands and retailers alike, much of the past year has been about experimenting and testing: finding out what works and how future strategies should be impacted as a result.


And in the west, beauty companies have been rushing to explore the potential of livestream shopping, a format that has boomed in China and is set to follow suit across the US and Europe. According to global advisory and research company Coresight Research, China’s livestream shopping market was worth an estimated $150bn in 2020 and is expected to climb to $300bn in 2021 with its mature platforms such as Alibaba’s Taobao Live. Wunderman Thompson notes in its Future 100:2021 report that during the 2020 Singles’ Day shopping event on the Taobao Live platform, 30 livestreaming channels were featured with each one generating more than $15.3m in gross merchandise value. The high level of sales and engagement with this channel in China is a clear indication of both its appeal to consumers and its benefit to brands and retailers.


The beauty of live commerce Within beauty, it offers a glittering ticket to the future of e-commerce, bringing it, literally, to life. Its advantages are clear: it combines the convenience of online shopping with the interaction that is found in-store. Shoppers are able to ask questions and receive an immediate response from an expert, who in this case might have the added attraction of being an influencer and/or brand ambassador or expert. And in 2020 – just as brands and retailers were turning their attention to livestream shopping – another thing happened. There was a flood of announcements from social media and livestreaming platforms launching the addition of live shopping capabilities, which have enabled more brands to embrace the live shopping trend. Facebook and Instagram introduced live shopping in the US, while TikTok, which grew sharply in 2020 as a space for beauty brands, partnered Shopify, an e-commerce platform for


10 cosmetics business May 2021


Lancôme’s stream with muse Chiara Ferragni to promote her new make-up line proved a success with consumers


LIVESTREAM SHOPPING: MARKET VALUE, 2021


small businesses, both in the US and since last month in the UK, enabling brands and retailers to showcase shoppable videos.


CHINA $300bn


$11bn US


Source: Coresight Research


Shopify also entered a partnership with Canada- based livestream shopping platform Livescale, which is used by L’Oréal, while last September saw the launch of new livestream shopping platform Shop LIT Live, which has since broadcast shoppable livestreams from beauty brands including Blume, Phyla and Codex. And brands are speeding ahead with their development of this channel. L’Oréal has run more than 50 events across its brands, offering viewers live beauty tutorials in partnership with experts and influencers and a chance to purchase the products during the show at special offer prices. The L’Oréal Luxe Virtual Beauty Festival in Malaysia last July was a 12-hour event that engaged 120 beauty advisers to provide e-consultations, and resulted in more than 6000 orders placed. Another live shopping event was hosted by Lancôme muse Chiara Ferragni to coincide with the launch of her new make-up collection with the brand. Joined by make-up artist Lisa Eldridge and fashion editor


cosmeticsbusiness.com


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