Opportunities for the fashion industry Social and live commerce – that is the message of the participants in the panel discussion ‘Social and Live Commerce: What does it take to assert yourself in the West?’, which took place at the Web Summit tech conference in Lisbon.
According to Sophie Frères, the co-founder and managing director of the software company LiSA, which specializes in social commerce, there are currently two developments in e-commerce: As people spend more and more time on the Internet, they have the urge to join online communities to gather where they feel connected, says Frères.
About LiSA
“We are essentially a 360-degree social commerce suite,” explains Frères. “This means that brands and retailers use our software to create experiences like live shopping or shoppable stories on their own e-commerce platforms. “So if you attend a Marks & Spencer or Charlotte Tilbury live shopping event, for example, our software will support that.”
“The second development is the desire for great experiences. People don’t just want a transactional online shopping experience where they click on a picture and checkout.” Customers crave engaging and enjoyable experiences.
“If you Community and experience, social commerce could be the answer. It’s about bringing people together in an experience, whether that’s a live stream, a video or the Metaverse. And the seamless integration of direct purchase options from that experience – that’s exactly what social commerce is,” she explains.
Image problem and fears regarding social and live commerce
While live shopping has caught on in China, it has not yet reached the same level of popularity and acceptance in the West.
“Live shopping has an image problem,” argues Frères. It is often assumed that live commerce is similar to old-fashioned teleshopping. Many companies also believe that everything has to be perfect during live broadcasts because they “otherwise fear damage to their brand.” says Freres. “Many labels are already creating a lot user-generated content – i.e. social media content that is created by users – which they manage and embed into their online presence. When I talk to them, I point out that social and live commerce are very similar: they’re also content that’s just enriched with shopping and interactivity. Once they understand that, it often becomes a lot easier.”
The speakers in the panel discussion are of the opinion that social and live commerce are on the verge of a breakthrough in the West and that fashion companies can offer a lot.
The potential of live shopping
“Marks & Spencer is achieving incredible results,” Frères explained to the audience: “Namely a constant increase in average order value of 15 percent. In addition, followers of the live shows visit the website three times more often per month compared to the classic online one. customers,” she continued. “And cosmetics brand Charlotte Tilbury sees conversion rates of up to 37 percent.”
“Social and live commerce can also be a tool to attract new customers,” says Eamonn Carey, general partner of the international investment firm Tera Ventures. “The US cosmetics brand Avon, for example, has one Social sharing rate “So what does this mean? If 100 people are watching a live stream and the host asks them to invite friends, up to 43 percent of the audience will do so without any incentive like an additional discount. These people “Love the live shopping experience and want to share it with friends. There are no costs for customer acquisition,” says Carey.
Frères also emphasized that return rates for live shopping are 50 percent lower than normal return rates for online shopping because people learn a lot about the products while shopping live.
The authenticity factor
According to Frères, the key to success lies in creating community first Content, i.e. content that comes from your own community. “Marks & Spencer streams live shows almost every day,” she says. “These live experiences are organized by in-house stylists, buyers and brand experts. Their own community is used to create content. These people are “We’re not trained to be in front of the camera or do product demonstrations, which makes the whole thing really authentic. Sometimes things go wrong, but that doesn’t bother the followers at all.”
“The audience values authentic connection,” said speaker Tony Wang, co-founder and CEO of online platform Agora.io. “live is a bit of a misleading term,” he adds. “Because what we actually mean is the interactive, social element in Real time. The audience can participate in the event – and that is the key.”
“Just start”
Frères has another tip for companies and labels that want to start with social and live commerce: “In the beginning, it’s not about attracting a large audience. It’s about finding what works for your community. So start simple,” she advises. “Live shopping is something to experiment with, but it can also be as simple as bringing Instagram content to your website and making it interactive and engaging. Start small, find out what your audience likes, and then grow it.”
The Web Summit took place in Lisbon from November 14th to 16th.
This translated article previously appeared on FashionUnited.nl. Translation and editing: Pia Schulz