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by Daniela Köhler
Publications officer
All the assistance of in-house shopping, all the convenience of online shopping – live shopping makes it possible. This megatrend from China combines the advantages of e-commerce with those of local stores. A concept that’s finding more and more fans in Germany.
To a first-timer, live shopping might seem like nothing new. After all, teleshopping has been a regular feature of the German TV landscape since the mid-1990s. But live shopping is different. Although moderators also present products in front of the camera, unlike traditional TV shopping, live shopping is broadcast over the internet. Manufacturers or retailers use company-owned websites, apps or social platforms for their sales shows, so those interested need at least a smartphone to follow the streams. They can then use the live chat to ask questions about the products or buy the items presented straight away.
Since early this year, the German online retailer OTTO has been going one step further: “With our self-developed app for Apple TV, we’re bringing live shopping to TV devices for the first time”, says Jörg Heinemann, OTTO’s Innovation Evangelist. The app works similarly to video-on-demand services or media libraries. According to Heinemann, while the entertainment (the live shopping show) runs on the TV, you can chat or directly buy products using your smartphone.
Live shopping originated in China, pioneered by the Alibaba Group. It launched its first live shopping experience back in 2016. With success: According to the management consultancy McKinsey, a single sales show in 2020 resulted in the group generating billions in revenue. Since then, live shopping has established itself as an important sales channel in China, according to McKinsey. In 2022, 750 million users shopped this way.
And in Germany? Similar formats are becoming more and more popular:
According to the study, live shoppers especially appreciate the opportunity to ask questions, the good product explanations and the format’s entertainment value. Nina Scharwenka, a partner at Simon-Kucher, is convinced that “live shopping will revolutionize the way we shop. It will become more and more about the ‘how’ rather than just the ‘what’.”
Aside from OTTO, many other brands and retailers in Germany, from IKEA and MediaMarktSATURN to Lidl and dm, have discovered live shopping and consider it an attractive sales channel. They stream more or less regularly and still reach up to 100,000 viewers who follow the shows live. Anyone thinking about setting up their own live shopping service is initially faced with a key question: Where should the live shows be broadcast? There are two basic options available: social media platforms or features integrated into one’s own online shop.
There are also different approaches for the implementation – from high-end shows shot at a film studio to semi-professional outdoor broadcasts. The good news is that live shopping is also possible with smaller budgets. Smartphones with high-definition cameras are in many respects almost as powerful as standard cameras, and in regard to the location a store or maybe even the company headquarters are at least as suitable as a studio. Possibly even more suitable. After all, viewers are not expecting live shopping shows to be perfectly staged, polished events. Instead, they appreciate authenticity. This can be achieved by broadcasting in a natural environment with employees as moderators.
Grube is a good example of that. The family business is a leading online retailer in the forestry, landscaping and environmental sector, and has been streaming sales shows since 2023. “We were the first retailer in the forestry and hunting sector to take the plunge into live shopping. After some initial challenges, we’re now ready to broadcast a live show from the field or in the store,” the company writes on LinkedIn. To date, episodes on various topics such as outdoor clothing or hunting dogs have already been streamed. A dedicated team of Grube employees oversees the project – and not just behind the camera, but also in front of it. Grube creates the technical basis for this with the novomind iSHOP shop system as well as a special software from Otto Group Solution Provider (OSP) GmbH. Their platform, MOVEX | Live Shopping, is directly integrated into novomind iSHOP and adapted to Grube’s individual needs. This allows viewers to ask questions during the stream and simply add the products being presented to their shopping cart.
Live shopping is a trend with enormous sales potential. McKinsey experts estimate that live shopping could account for up to 20% of all e-commerce by 2026. It is therefore worth putting the topic on the agenda and consider creating your own live shopping channel. What you should keep in mind is described in this whitepaper by our partner OSP.
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