“US livestream commerce expected to surpass $31B in 2023: report” by Tatiana Walk-Morris via Retail Dive

“US livestream commerce expected to surpass $31B in 2023: report” by Tatiana Walk-Morris via Retail Dive

Retrieved from Piqsels.

Dive Brief:

  • The livestream e-commerce market will reach $31.7 billion by the end of this year, nearly triple its size in 2021, according to a report by Coresight Research and Bambuser. The report projects that the market will reach $67.8 billion by 2026, accounting for over 5% of e-commerce. 
  • Among the top platforms retailers used for livestreaming are Facebook Live (55%), YouTube Live (52%), Instagram Live (46%), Amazon Live (30%) and a company’s own app or website (28%). The report also found that consumers primarily engage with livestream commerce via social media platforms like Instagram and Facebook (64%), followed by video-sharing platforms such as YouTube and TikTok (53%), online marketplaces like Amazon (31%) and TV networks like QVC and HSN (30%).
  • By contrast, Twitch Live (24%), TikTok (22%), Pinterest TV (14%), Talkshoplive (14%), QVC, HSN and HSE (7%) were the bottom platforms retail companies use for livestreaming. The companies with the least U.S. livestream viewers were retailer websites and apps such as Walmart and Nordstrom (24%), livestream shopping platforms like Talkshoplive and ShopShops (23%) and brand websites and apps like Estée Lauder and Nike (21%), the report found.

Dive Insight:

Livestream shoppers’ viewing habits vary depending on their age group, with younger audiences more likely to watch earlier in the day. Consumers ages 18 to 25 are likely to watch livestream commerce programming from early in the morning until the afternoon (7:00 a.m. to 4:00 p.m.). Shoppers ages 42 to 57 are more likely to view livestream shopping content from early evening to late night (5:00 p.m. to 12:00 a.m.). 

New industries are also adopting livestream commerce. Forty-one percent of home improvement retailers said they had been using livestream commerce for the past six to 12 months. Meanwhile, 37% of grocery, consumer electronics and general merchandise retailers said they had been doing so for the same timeframe. 

“We expect livestreaming engagement will continue to grow through 2023 as retail companies vie for a share of shoppers’ wallets by establishing connections and building trust via livestreams,” Coresight wrote in the report. “As the livestream channel continues to expand into new sectors, such as home improvement and grocery, informative content and creative collaboration will be key in growing and maintaining an audience.”

With livestream shopping predicted to grow, some retailers have poured more resources into the marketing channel. Last year Walmart and Talkshoplive expanded its partnership to launch eight livestreaming shopping experiences. 

However, other research suggests that the livestream shopping trend has yet to take off in the U.S., and other platforms have stepped away from livestream shopping. Last August, Meta shuttered its live shopping feature on Facebook. Last month, the company made a similar move with Instagram.

As retailers and social networks dive deeper into or exit the livestream commerce space, a Morning Consult report released in December noted that less than a third of U.S. adults had heard of, seen or read about live shopping events. Nearly 80% of U.S. adults said they had never participated in a livestream shopping event. 

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