In the bid to further expand its revenue streams and platform engagement, TikTok recently launched its live shopping feature. The feature allows TikTok influencers and merchants to execute Livestream selling with instant trading taking place.
The rise of Livestream shopping has been gathering momentum. Experts predict that the live shopping industry in the United States (US) will be worth $35 billion by 2024. In China, on the other hand, Livestream shopping already plays a huge part in the country’s social shopping culture. In fact, 45% of China’s online shoppers will purchase via Livestream in 2023. In 2022, its live shopping industry is expected to reach over $400 billion.
There are three implications for Livestream shopping. Firstly, it will allow brands to reach a global audience like never before thereby, reducing the barriers to engaging and activating new markets, customers and interests. It is also a disruptor for the traditional eCommerce models and platforms that lays emphasis on having a one-stop shop for everything and pulling and pushing customers to buy using various channels and funnels.
Lastly, it is bound to empower the underdog brand. With the strength and audience garnered by influencers and celebrities on TikTok, the growth in Livestream shopping could encourage new brands and product lines to compete in a here-to-fore market dominated by giants. While ethics and standards in digital selling could be a faultline, it will be interesting to see how TikTok and other social media giants would leverage this channel to broaden eCommerce and brand visibility.
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