“The Happy Medium” between online and in-store shopping: live streaming
Covid-19 causes live-stream shopping, a popular trend in China, to surge in the United States.
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During the peak of Covid-19, many U.S retail companies had to find new ways to sell products to consumers, as shopping malls and retail storefronts closed across the United States. Many retail companies have resorted to the use of “live stream shopping” and other contactless alternatives to maintain sales and to stay in business.
“Today, it’s all about meeting customers wherever they are at, whether they are online, curbside, or in-store,” says Nate Emerson, a social media influencer for American Eagle Outfitters. During the pandemic, Emerson was meeting his customers on live streams. He used live streaming to virtually connect with customers during Covid-19.
Emerson currently works at an American Eagle store in South Portland, Maine. During the middle of the pandemic, the American Eagle company launched an app called “AE Live,” a shopping app that allows customers to shop for products one-on-one with a personal stylist through a live video chat system. Emerson still currently hosts Livestream shopping sessions for AE with customers every week. He lives streams with customers from both his home and his store, using only his iPhone and ring light. He describes Livestream shopping as a mix between “shopping in-store and shopping online,” giving customers what he calls the “the best of both worlds.”
Picture of Nate for AE from his Instagram (@nate. emerson35)
Olivia Aneil, another AE influencer for American Eagle says, “AE live is kind of like zoom, facetime, and skype but for shopping and retail.” The app is currently only available to iPhone users in the U.S, but the company is working to expand the app internationally and across more locations in the United States. Aneil and Emerson are two of sixty AE Live Ambassadors.
Livestream shopping allows a brand ambassador to sell products directly to a customer without having to be physically present in the same location. It provides customers with the face-to-face personal interactions of in-store shopping, while simultaneously social distancing and limiting physical contact in a covid world. Live stream shopping started as a trend in China and is now making its way over to the United States. According to Insider Intelligence, Livestream e-commerce sales in China reached “$300 billion in 2021,” and are projected to double by 2023, reaching “$600 billion dollars.” U.S Livestream shopping sales are forecasted to reach “$25 billion by 2023.”
Overall, Livestream shopping increased in the United States during the pandemic. According to Statistica, “In 2020, the coronavirus-pandemic led to unprecedented growth in e-commerce, including the surge of contemporary trends such as social commerce and live commerce. Live stream e-commerce uses video content on digital platforms to sell products in real-time. U.S live commerce usage grew 76% percent in 2020.” During covid, social media and live streaming services offered new ways for businesses to continue to sell products to consumers. Live stream shopping allows companies and consumers to connect virtually.
In addition to the ability to avoid physical contact, Livestream shopping offers businesses other benefits as well. According to Amplify, “live stream shopping can help drive conversion rates and average order values while ensuring a high level of customer satisfaction.” Retail conversion rates measure the number of people who purchase products against the total amount of people that walk into a store during a given period. The more people who walk into a store and purchase products, the higher a store’s conversion rate will be. Emerson explains how using live streaming technologies has overall benefited his retail store.
“My store’s conversion has skyrocketed since using live streaming,” says Emerson. “When I host live sessions, I can tell people all about the products and suggest products that I think they will personally like. With traditional online shopping, there is no way for an employee to make recommendations to a customer. Since using AE live, we have seen store returns go down, and people usually always buy something and more than one item during a session.” Emerson has found that customers are more likely to buy items through a live stream than when shopping in-store because live streams create a feeling of urgency and a sense of “obligation” to buy.
Emerson explains how live-stream shopping can overall provide customers with a more personalized, tailored, and customized shopping experience than shopping in-store or online. According to a survey conducted by Meta Business, Facebook, “78% of Americans say the shopping experience a company provides is just as important as its products and services.”
Emerson works to create a personalized and unique shopping experience for all of his customers. In addition to AE Live, he utilizes social media to find customers. He reaches out to potential customers for live streaming sessions across the U.S through social media. Before every session, he asks each customer preliminary questions to get an initial understanding of their unique style, desires, and needs. Emerson explains how live streaming allows an employee to gain a better understanding of a customer’s interests and needs, before even showing and selling the products.
“ When I reach out to people through social media, I build outfits specifically for them. If I were to look at someone’s social media page right now,” says Emerson. “ I can see that “Oh, maybe they like crewneck sweaters and fitted jeans.” I can see what their style is and pull outfits for the session based on what they are wearing in photos and what I think they will like. If they love crop tops, I am not going to waste any time showing them oversized t-shirts.”
Since covid restrictions and protocols have decreased across U.S states, Emerson has seen a significant increase in traffic at his local mall and store. “ Our in-store and mall traffic has increased recently,” says Emerson. “A lot of people are coming shopping just to get out of the house and walk around. I feel like people are finally ready to get back out and are done being locked up. Right now, AE Live is no longer as necessary as it once was for the covid aspect. But some people have become “homebodies,” so were marketing it more towards people who prefer to stay home, rather than people who are afraid now to come out.”
Circumstances can change, but Emerson explains how a business adapts is what will determine whether they survive. “I think if we ever shut down again as a country or statewide,” says Emerson. “Virtual selling would go up.”
And if another disease ever sweeps across the country, closing down brick and mortar stores, Emerson will be ready to work from home, with only his iPhone and a ring light.