The Future of Livestreaming in 2022

Addressing TikTok Shop expansion speculations with Livestream Shopping company Onlive.site

FREIM X Onlive.site
Recent stories speculating that TikTok Shop is halting its expansion in Europe and the US have caused concern for some members in the Live Shopping and Livestreaming space. At FREIM Studio, however, we are optimistic as ever that Live Shopping is the future of e-commerce across the globe. We spoke to Alfredo Ouro, the CEO of Onlive.site, a Livestream Shopping Technology provider, about the future of e-commerce:

“In the same way that Facebook (and other well-known social networks) failed time and time again in their attempt to take over e-commerce, TikTok’s [speculated] change of plans on e-commerce in the West does not necessarily mean that Live Shopping has neither sense nor future in this part of the world. At Onlive.site, we firmly maintain the opposite.”

When discussing the status of Livestreaming and the reasons why TikTok’s venture may not have succeeded yet in the West, there are three key areas for consideration:
Brand Site VS External Site
Number 1: Greater weight of the brand’s own website and direct sales

Brands often consider their own website as the most important aspect of their marketing strategy. A brand’s own website lives and breathes the brand identity and goals, and aims to create a hub for consumers to explore the company away from the distractions of competitors. This means that brands often focus on getting consumers away from the hustle and bustle of social media, and onto their own platforms where they can build up connections.

“In the West, brands have opted for years to put their own site and the direct relationship with the client as the centre and priority of their digital strategy.”

“Consumers [are] aware of the importance that a direct relationship with them has for brands, they tend to visit the brand site hoping to obtain a benefit from the purchase without intermediaries (billboard effect) or better care. Of course, there are marketplaces that are successful, but the competitive environment is much more fragmented.” — Alfredo Ouro (Onlive.site).

The Marketing Funnel
Number 2: Platform Compatibility and The Marketing Funnel
Not every platform is suitable for all consumer or brand needs. Those working in the marketing and e-commerce space will know of the concept of the marketing funnel — a model which outlines the thought process of consumers up to purchase and beyond. Consumers thought processes often aren’t the same when they are on social media vs when on a brand’s own site, meaning conversion success may vary per platform.

“The customer mood in social networks is one of exploration, the highest part of the [marketing] funnel. In the brand site the customer is in “shopping mode” and this could explain these enormous differences with the Asian model, where e-commerce is much more concentrated in a few (but giant) marketplaces that are also the owners of the main social networks.” — Alfredo Ouro (Onlive.site)

Launching through influencers
Number 3: Launching a Live Shopping channel exclusively through influencers can be a questionable strategy
Although the use of influencers and sponsorships can be an effective tactic for brands wishing to expand, it is not always the right strategy when it comes to Live Shopping. Live Shopping is often the most effective when it is an expert seller demonstrating the product, rather than an influencer — the seller may eventually gain influencer standing, but they often do not start that way.

“In this subject of influencers we observe an important error of perception. Live Shopping is about sellers, product experts who, through their knowledge and didactic skills, can sell and entertain the audience. They are not necessarily influencers. What happens is that in China these sellers have become real celebrities and for this reason in the West there is a false perception that the correct combination is the influencer-brand-client triangle.”

“The best results we have seen in Onlive.site after working with more than 100 brands from 18 countries since our launch in September 2021 have always had a common denominator: the figure of a true expert with ability to transfer your particular and valuable knowledge to the audience in combination with a good opportunity in the offer shown.” — Alfredo Ouro (Onlive.site)

No matter TikTok’s plans and whether they decide to expand into the West or not at this time, we know that this is just the beginning of Livestreaming. Big brands are still jumping onto the Livestreaming and Live Shopping band waggon with enthusiasm, and most importantly, success.

"We have noticed in the past months a considerable increase in awareness and adoption of big brands towards using Live Shopping from both channels: inbound & outbound! In our case: Delonghi, Lush, LG, Leroy Merlin, Decathlon, etc, just to give a few names have already incorporated Live Shopping and video shopping as part of their content strategy.

Multinationals such as Delonghi or Lush — after testing Live Shopping in one market are starting to roll over in other markets getting ready for Q3 and Q4 (Black Friday, Xmas Holidays, etc)." —Alfredo Ouro (Onlive.site)

Onlive.site has expanded year on year, with 600% growth since the beginning of the year and double-digit growth month on month since its inception. They are present in over 19 markets and have seen live shows by medium-sized e-commerce brands with thousands of viewers and check-out rates of over 47% — proving that Livestreaming is a concept that works, not only in China.

If you would like more information on the status of Livestreaming and how you can be a part of it, contact us at: [email protected] or follow us on LinkedIn or Instagram.

 
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