Every few weeks, an article on the future of commerce makes an appearance in my research. The problem is that these articles are still referencing to retail and e-commerce. The future looks very different, as commerce needs to be entertaining and relevant. Live-Streaming is already active, and smart devices leveraging voice commerce seems distant.

Live-Streaming is the social commerce element that will scale in all markets. Why? Consumers all have mobile phones. Creators and merchants are looking for shopping cart abandonment solution which communicates trust.

Live-Streaming – The multi-sided solution

In the West, the pain that retail is currently in is accelerating. In developed markets, retail is under pressure related to salaries, rent, and a lack of sales. Moving a retail business online sounds easy, but in reality, it’s hard due to legacy systems. Moving ERP, WMS data to new platforms takes time, and retailers are staring into the abyss. Proper commerce integration execution is costly and requires access to talent. If you have ever been a part of a re-platforming e-commerce project, you understand the pain I describe.

I am not belittling the challenges that commerce offers retailers and startups. Commerce is hard, takes time, and you need long-term thinking to survive. Shopify and BigCommerce, has lowered the barriers to entry for commerce businesses. The current e-commerce infrastructure software is not suitable for re-platforming an incumbent. The news that Target is testing selling via Instagram is a double-sided test. The company wants to access consumers where they are (Instagram). It also wants transactions to be without friction. 

When I saw live-streaming in China in 2019, I did not recognize the fact that it also removes barriers to entry. Opening an online store requires access to a computer and some level of education. Access to infrastructure such as payment gateways, shopping cart software is crucial.

Livesteamers need:

• a table, 
• a few chairs, 
• some decorations for the table, 
• mobile phones to act as cameras, 
• and lighting to access consumers on platforms,
• partnerships with brands to sell items.

Live-Streaming is not a silver bullet and requires the fundamentals of commerce. Quality product sold by trustworthy brand ambassadors. There will be growing pains. Brands can also control this via hosting this on their platforms and gain the customer data.

Live-streaming ubiquity is visible

I was not convinced about it becoming global in late 2019. Six months later and Instagram live is being used aa a customer touchpoint in the West. Alibaba accelerated live-streaming in South East Asia through Lazada. In South Korea, platforms such as Naver and Kakao are now battling one another in this new world. All this news combined, or show that live-streaming is not a fad but rather an accelerating trend.

Live-Streaming, any product of any cost, is a reality. Please leave it to the Chinese to sell houses, property, cars via the channel.

Live-Streaming is gaining adoption (even I have watched it), and it’s not going to go away. Instagram is the West’s super app. There are still opportunities for new emerging platforms to gain consumer adoption.

Brands have to be tactical about it as it also offers risks:

• Live-Streaming is an open market. Anyone can do it, anywhere. Do you know where your products are being sold and by who?
• Discounting is a last resort and use price elasticity tests to determine pricing. It can become a race to the bottom if not managed.
• Use large platforms as testing grounds. Some startups offer SaaS solutions that enable you to add it to your marketing mix. 
• Ensure that you understand the implications of demand spikes. Use analytics to understand who is selling and how much they are selling. 

Commerce has always been a social event. Chinese platforms such as Alibaba, JD.com, and Pinduoduo have it as their DNA. Live-Streaming enables social contact to occur safely and create entertainment.

Its day one for live-streaming.