“Live commerce” is attracting attention as a new sales strategy in the new normal era.
Live commerce is an online live streaming service that is said to “change the future of e-commerce.” It is characterized by the ability to “enable real-time two-way communication between consumers and distributors,” something that traditional e-commerce did not have.
In this article, we will explain the reasons why many companies are looking forward to live commerce, as well as the advantages and disadvantages of companies working on it, as well as the key points for success.
Reference source:
Explaining the benefits of live commerce! Will the future of EC services change? !
Resolve purchase concerns on the spot
Live commerce, which has seen an increasing number of companies engage in it in recent years, is a service in which broadcasters broadcast live online to consumers, allowing them to purchase products in real time.
A new service that takes advantage of the characteristics of e-commerce and allows consumers to make comments and ask questions in real time is attracting attention.
By utilizing two-way communication, which is not available in traditional e-commerce, and resolving concerns and questions about purchasing products on the spot, consumers will be more convinced and will be more likely to feel excited about shopping. Probably.
In particular, it is important that products with scarcity value such as “limited edition” items increase consumers’ desire to purchase them, and by checking the number of items in stock in real time, the popularity of the product can be directly communicated.
Reference source:
Explaining the benefits of live commerce! Will the future of EC services change? !
Various benefits of live commerce
For consumers, live commerce has the advantage of being able to immediately resolve any questions they may have about a product, and being able to purchase it immediately if they feel they want it.
There are many benefits for companies as well, such as being able to clearly communicate the quality of their products to consumers and thereby increasing awareness.
One of the most attractive features is that it has the potential to increase sales explosively. In the world where businesses started early, it is not uncommon for a single live commerce event to record sales in the tens of millions of yen.
However, in order to increase sales, the first premise is to get viewers to watch the video. The challenge is how many customers can be attracted to the company’s live commerce.
In order to increase the number of viewers, all kinds of measures are being taken to get people to watch live commerce, such as using famous influencers, key opinion leaders (KOLs), and celebrities to attract attention.
Also understand the disadvantages
There are also disadvantages to live commerce that you should be aware of.
As a result of using influencers and celebrities as a result of the above-mentioned measures to attract customers, the cost of live commerce may become too high.
However, if it is distributed only by in-house staff, it is unlikely to attract a large number of customers, and as a result, it is predicted that it will not lead to maximizing sales.
If you focus on things like “getting people fully aware of the product” and “building a sense of familiarity with consumers through two-way interaction (improving brand power),” you can distribute content only with your own staff. It would be good too. However, in cases where there are almost no customers, the first thing you should think about is gathering viewers through some kind of strategy and getting as many consumers as possible to watch it.
summary
Some of the reasons why companies use live commerce include that they can expect large sales by having people deeply understand the characteristics of their products, and that they can gain fans and enhance their brand power.
If it penetrates the Japanese market as a new and unprecedented marketing activity, it will become a strategic sales channel with the potential to change the future of e-commerce.
In order to succeed, it is important to clearly set goals and increase the number of viewers (your company’s fans).
Reference source:
Explaining the benefits of live commerce! Will the future of EC services change? !