What is Livestream Shopping?
Livestream shopping is a digital event in which social media influencers stream themselves showcasing various products and make recommendations to consumers in real time. You may be wondering how many people would actually buy a product solely based on an internet celebrity’s recommendation. The answer is: a lot.
Last year, one of China’s biggest online stars singlehandedly drove $1 billion in product sales during a 14-hour livestream. It was conducted as part of Singles’ Day, a Chinese holiday celebrating single people and encouraging them to shop (similar to Cyber Monday). The two weeks leading up to November 11 include deals and discounts in this vein.
After a banner year in 2021, livestream shopping this year, on a whole, appears to be losing some steam. Factors contributing to this shift include heightened regulations by the Chinese government and a recent crackdown on celebrity influencers, some of whom have been evicted of tax evasion.
Notably, Alibaba (BABA), China’s largest ecommerce company, is expected to post flat growth in sales from last year’s Singles’ Day. Additionally, only 75% of consumers said they would watch a livestream shopping event this year, down from 97% last year.
What About the US?
While Singles’ Day isn’t formally celebrated in the US, some American companies have explored the use of livestream shopping, perhaps inspired by the past success of Singles’ Day.
For reference, the two-week Singles’ Day shopping spree, known as the world’s biggest shopping event, generated about $131 billion in sales for companies in 2021. By comparison, US shoppers spent about $30-40 billion during last year’s Black Friday.
Despite the crackdown on celebrity livestream shopping from Chinese authorities, US consumers can still expect this trend to carry over into Western culture. In fact, the next time you tune into your favorite YouTube (GOOGL) or TikTok star, pay extra close attention to the products those influencers might be hawking.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.