Home shopping Is Video Shopping Here To Stay?

Is Video Shopping Here To Stay?

Is Video Shopping Here To Stay?

Master in Economics, 11+ years in business, 5+ years in the IT industry, co-founder of two successful startups and CEO of Oyper.

When the pandemic hit, online became the new offline. Confined to their homes, people had to embrace technology to do their shopping. Even at this stage of the pandemic, as restrictions are slowly being lifted, digital commerce is still growing.

Video shopping, or the use of video content to promote products and services, can be a win-win both for retailers and shoppers, as video shopping makes it possible to provide more detailed information on products. Today, many consumers prefer watching a clip to reading texts. There are now more shoppable video platforms taking advantage of the opportunity to use functionality to promote products and services.

Given that almost 90{c30f02d1a3839018c3a3c8c7102050a0b32e2e4f8eba54dea6cc544f0247e749} of marketers say video gives them a good return on investment, it’s no surprise 86{c30f02d1a3839018c3a3c8c7102050a0b32e2e4f8eba54dea6cc544f0247e749} of businesses use video in their marketing campaigns, according to Wyzowl’s “State of Video Marketing 2021” report (registration required), which surveyed 813 marketing professionals and consumers. Using Bambuser live video shopping, Samsung was ahead of its conversion goals by 127{c30f02d1a3839018c3a3c8c7102050a0b32e2e4f8eba54dea6cc544f0247e749}.

Live video shopping is a trend that first started in China, and now I see that Europe and the U.S. are trying to catch up. I believe its country of origin is an example of the successful use of the economic potential of this form of retail. McKinsey reported that a 2020 survey found two-thirds of Chinese customers bought products via livestream within the past year. “If China’s experience is any guide, our analysis indicates that live-commerce-initiated sales could account for as much as 10 to 20 percent of all e-commerce by 2026,” McKinsey also said.

As for the U.S., live shopping sales are expected to reach $11 billion this year, a $5 billion increase from 2020, according to Activate’s media outlook for 2022. Blake Droesch, an e-commerce analyst for Insider Intelligence, told Vogue, “Live shopping sales are growing, but from a very small base.”

My company is developing neural networks that recognize clothing items in any video format and offer shoppable products at online stores. Based on my observations, in this day and age, customers must still be “trained” to make use of this kind of shopping. However, I believe it is only a question of time before they learn how to fully embrace it. To help with this, teach your audience how exactly the technology operates. This can be done by means of a 10-second clip shown before a movie, TV show, music video, etc., saying that your video is shoppable. Then, instructions on how to interact with the content to make purchases should follow. Once Pinterest and YouTube engage in this type of e-commerce, I expect people will take to live video shopping as a duck to water.

That said, from my perspective, video shopping is still in its infancy stage. As such, experiment with your approach and the user experience. As you do, study your audience’s reaction and adjust accordingly.

To sum up, there are a few primary benefits brands may see when leveraging video shopping, including a new type of engagement with the consumer, the ability to directly interact with their audiences and the potential for increased engagement and sales. Despite the growing uncertainty in the world caused by the pandemic, I believe the current state of affairs is going to benefit digital commerce. As for video shopping, some parts of the world might be adapting to it faster than others. Given the potential benefits it can offer to retailers, providers and, most importantly, customers, I predict this trend is here to stay.

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?