Video shopping in the West hasn’t matched the hype. Will it? - Vogue Business

Summary

To become a Vogue Business Member and receive the Technology Edit newsletter, click here.

Never mind the hype. Consumers in the West are not embracing video shopping with the same enthusiasm as the Chinese. In May this year, only 29 per cent of American shoppers made a purchase by video, compared with 63 per cent of Chinese, according to a report from Euromonitor.

To become a Vogue Business Member and receive the Technology Edit newsletter, click here.

Never mind the hype. Consumers in the West are not embracing video shopping with the same enthusiasm as the Chinese. In May this year, only 29 per cent of American shoppers made a purchase by video, compared with 63 per cent of Chinese, according to a report from Euromonitor.

However, pioneers of video shopping in Western countries say the future could still be bright if the right formula is identified — for luxury as much as any other product category. The industry is realising that “maybe a carbon copy of China does not work”, says Brandon Kruse, founder and CEO of Commentsold, a US-based specialist in live-stream selling.

Initially, Covid-19 lockdowns were expected to create momentum for video shopping. In 2020, Gucci launched a personalised video shopping offer, creating a store-like studio for one-on-one appointments. Moda Operandi, Neiman Marcus, Nordstrom and Farfetch began testing one-to-many broadcasts. Kering invested in video shopping app Ntwrk, while Klarna bought clienteling tech startup Hero.

Since this initial spate of activity, the pace has slowed. Klarna’s valuation has declined while the share price of video shopping platform Bambuser (which works with Farfetch and Fendi) is down 80 per cent on a year ago. Even TikTok, boasting a format that has informed video trends, has acknowledged video shopping headwinds. Investment in video shopping is down on a year and a half ago, says Matt Moorut, an analyst for Gartner for Marketers who specialises in luxury retail.

Compare and contrast with China, where live streaming is an integral part of e-commerce. It generated $300 billion last year, according to Insider Intelligence. Optimistic estimates for the US land at $11 billion, according to management consulting firm Activate’s Technology Media Outlook 2022. And, video shopping is gaining traction even more slowly in South America and Europe, with 28 per cent of shoppers in Brazil making a purchase by video this May and just 18 per cent in the UK, according to the Euromonitor report.

There are still big differences between the ecosystem for selling online in China compared to the Western world.”

“There are still big differences between the ecosystem for selling online in China compared to the Western world,” says Moorut. Besides the long-time momentum achieved through big sales events such as Singles Day, China has an infrastructure in place that allows for instant gratification of impulse purchases. “A Chinese consumer can watch a live stream of an influencer eating a breakfast cereal, buy it off the live stream, and have it delivered to them in less than an hour,” says Blake Droesch, a senior analyst of retail and e-commerce at Insider Intelligence.

Video shopping in the West hasn’t matched the hype. Will it? - Vogue Business
Photo Credit: Vogue Business

1 Big Strategic Bet by Shopify That Went Wrong - The Motley Fool

Shopify (SHOP 10.50%) was among the best-performing stocks immediately after COVID-19 hit in March 2020. At one point, the company could do no wrong as the pandemic significantly a …

Read more here
1 Big Strategic Bet by Shopify That Went Wrong - The Motley Fool

1 Big Strategic Bet by Shopify That Went Wrong - Nasdaq

Shopify (NYSE: SHOP) was among the best-performing stocks immediately after COVID-19 hit in March 2020. At one point, the company could do no wrong as the pandemic significantly ac …

Read more here
1 Big Strategic Bet by Shopify That Went Wrong - Nasdaq

3 of the Cheapest Stocks I Own - Nasdaq

2022 has created a lot of bargains for investors right now as some of the most promising stocks in the world got slammed by macroeconomic headwinds and are trading at significant d …

Read more here
3 of the Cheapest Stocks I Own - Nasdaq

Shopify Stock Drops 14%; CEO Admits Being Wrong - TipRanks

Shopify (SHOP) (TSE:SHOP) CEO Tobi Lütke has admitted that his projection of the expansion of the e-commerce business was inaccurate. As part of an attempt to adjust to the reality …

Read more here
Shopify Stock Drops 14%; CEO Admits Being Wrong - TipRanks

Why Digital Marketplaces Are The Future of Selling Digital Products - UrbanMatter

Today, online marketplaces are becoming the preferred selling channels for many leading brands across all industries. According to a recent report from Corporate Council, more than …

Read more here
Why Digital Marketplaces Are The Future of Selling Digital Products - UrbanMatter