How will video shopping survive after the pandemic
Retail Tech Insights | Wednesday, February 19, 2020
Will the livestreaming momentum that has been accelerated by the pandemic, remain to succeed once the pandemic is over
FREMONT, CA: Livestream video purchasing was hailed as a panacea a year ago. The format's popularity in China has sparked considerable investor interest in the West by mixing personal endorsements with e-commerce conveniences. Brands are still waiting for prospective viewers to share their enthusiasm in this new phase of the Covid-19 pandemic, and momentum has halted. Matt Moorut, a luxury retail analyst at Gartner for Marketers shared how he remembered having a lot of conversations about livestream commerce a year ago, and the number of interactions they had around the topic recently has definitely reduced. He added that he doesn't know anyone who frequently signs up for livestream shopping events.
The increase in viewership hasn't happened as rapidly as expected. According to Moorut, livestream will account for little more than 2 percent of worldwide digital commerce this year, including China. One of those long-term tendencies that were substantially accelerated by the pandemic is livestreaming. Blake Droesch, an e-commerce researcher for market research firm, Insider Intelligence stated that it's logical to expect that the hype will subside when the pandemic fades and people return to live events and in-store buying.
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This is a recurring pattern in the tech industry: initial excitement followed by disappointment as people underestimate how long it takes to reach critical mass. Analysts and investors appear to have an optimistic long-term view, which Moorut compares to the slow uptake of technology like Facebook advertising or QR codes. Retailers such as Moda Operandi, Neiman Marcus, Nordstrom, and Farfetch worked with video commerce systems to enable one-to-many broadcasts in the midst of the pandemic. Video shopping received some of the year's most significant e-commerce investments. Whatnot raised 150 million dollars in September at a valuation of 1.5 billion dollars, while Ntwrk earned 50 million dollars from Kering and Goldman Sachs. Klarna paid an estimated 160 million dollars for Hero in July, while Popshop Live raised 20 million dollars. Meanwhile, the major tech players such as Instagram, Facebook, Pinterest, Youtube, Tiktok, Amazon, Snapchat, are also investing in video commerce.
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