Tuesday, September 26, 2023

Explained: How Video Trading Helps Online Shoppers Try Before Buying

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Shreya has been with cafe-madrid.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider cafe-madrid.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

  • Ecommerce players are finding ways to bring the product closer to buyers through video or live commerce.
  • The Indian live e-commerce market is expected to generate a gross trade value of $4-$5 billion by 2025.
  • nykaa, Sugar Cosmetics, Myntraand Amazon have begun to provide customers with a live e-commerce experience.

Do you feel the need to try on your lipstick before buying it? Or make sure that a product matches your look? You may no longer have to walk into a store for this. Ecommerce players are finding ways to bring the product closer to buyers through video or live commerce.

Live commerce, video commerce or shoppable videos are AI-powered tools that make video ads more interactive and the experience more immersive. From virtual try-ons to Instagram filters that help choose a product or live sessions hosted by ecommerce players – the definition of live commerce itself is broad and expanding – as technology evolves.

Video commerce not only makes the experience more practical, but also bridges the gap between offline and online shopping experience.

AR, AI and Algorithms

One of the early adopters of this trend is online cosmetics retailer Nykaa, which has made L’Oreal’s advanced Al-powered virtual try-on technology ModiFace available to its customers.

ModiFace uses an advanced augmented reality (AR) facial tracker algorithm that scans facial features such as lips, eyes, cheeks and hair to provide a real-time virtual experience of a cosmetic product.

Lenskart also uses a 3D try-on version that allows shoppers to create a video of themselves and see how well a spectacle frame fits them.

Sugar Cosmetics India recently launched an Augmented Reality Instagram filter in a campaign called ‘Wheel of Love’. The wheel chooses the best shade of lipstick and foundation that best suits the customer.

Live Launches and Live Shopping

In the live version of video shopping, influencers demonstrate newly launched products on their social media feeds where you can shop and pay at the same time.

Myntra also has a live e-commerce platform called M-Live, where experts and influencers host live video sessions of a product along with styling ideas, enabling real-time engagement between customers and brands. This simultaneously breaks into the elite personal shopper-like experience for online shoppers.

Amazon is also trying it for the upcoming Great Indian Festival, bringing in 150 influencers who will provide consumers with an interactive experience.

“Customers can have the feeling of shopping without having to physically be in a store. So Amazon shopping becomes more intuitive through artificial intelligence,” said Norwegian Patelvice president of Amazon India.

More involvement

It seems that these live commerce initiatives are also working. According to an
report by Meta’s business partner The Cirqle, the launch of an AR filter generates 75 seconds of customer engagement — that’s four times more than video content.

Canadian fashion retailer Aldo reported a
308% engagement rate following a livestream shopping event in 2021.

Due to the unique benefits it brings, live commerce will also grow. According to a report from Redseer, the Indian live commerce market is expected to generate a gross trade value (GMV) of $4-$5 billion by 2025. This is currently led by beauty and personal care (BPC) brands.

China’s live e-commerce market already makes up 9-10% of gross trade value (GMV), according to McKinsey Report 2021.

Along with online retailers, even offline retailers are chasing the immersive experience. “After the pandemic, we are trying to integrate a more immersive experience for retailers who visit malls every day. Malls have upgraded their mobile applications to allow consumers to preview brands, provide customer support and send vouchers,” said Shishir Baijalichairman and managing director of Knight Frank India.

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