Livestream sales of luxury items are popular in China, but not Singapore. Why?
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Livestream sales of luxury items are pop in Communist china, but not Singapore. Why?
Online way retailers Way Theory, LuxLexicon, and Vestiaire Collective cite our compact geography as one reason why luxury goods aren't marketed more via livestreams in Singapore.
The popularity of livestream sales has reached such feverish pitch that luxury brands tin can no longer afford to ignore it. (Photo: Pexels, Net-a-Porter; Art: Chern Ling)
21 Jun 2022 06:30AM (Updated: 09 Aug 2022 11:11AM)
With lockdowns and working from home now a way of life, it is no surprise that global e-commerce is experiencing an explosive growth. In particular, online sales via livestreams are booming, and nowhere is this more apparent than in one of the nigh digitally advanced markets in the world – Communist china.
For the fashion globe in detail, livestreaming is no longer perceived as a marketing tool for inexpensive brands selling at massive discounts. Its popularity has reached such feverish pitch that luxury brands can no longer afford to ignore it.
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The potential is tremendous. According to Jing Daily, Communist china bucked the global luxury market place'southward downhill trend by posting a phenomenal 48 per cent growth in 2020. As of December 2020, China'southward livestreaming audience hit 617 million, an increment of 57 1000000 users since March 2020. Of this, 388 million people have made purchases via livestreams compared to 300 million in 2019.
Then 2022 became the yr that luxury brands and retailers moved into the live circulate arena. French luxury house Louis Vuitton hosted its start livestream on luxury retail application Little Red Book (Xiaohongshu); Net-a-Porter sold luxury numberless with A-list Chinese influencer Mr Bags on Alibaba's Taobao Live platform; Kering-endemic Bottega Veneta's collaboration with China'southward "Lipstick King" Austin Li saw 230 Mini Pouch numberless sold for 12,300 yuan (about S$2,550) each in x seconds; and Moncler is now directly managing its own e-commerce post-obit a successful Weibo livestream for the 7 Moncler Fragment Hiroshi Fujiwara collection last July, which generated 32 million views in one day.
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With such astounding results, why then is the use of livestreams for retailing luxury items trudging forth in Singapore instead?
Mrs Florence Depression, founder of luxury independent consignment platforms LuxLexicon and LuxCollate, cites a smaller land mass and proximity to the physical retail experience as cardinal reasons why Singaporeans are only only warming up to the thought of livestream shopping.
"[China's] geographical vastness makes livestream shopping more appealing compared to a trudge to a physical store," explained Low. "On the other hand, Singapore, with its pocket-size size and great transport infrastructure, means 1 can access the products in person in mere minutes, hence providing neither a button nor motivation for livestream shopping."
LuxLexicon focuses mainly on pre-loved and brand-new Hermes bags while LuxCollate retails other European luxury brands. During last year's Excursion Billow, Depression started retailing the items live on Facebook and Instagram when LuxLexicon's store at The Centrepoint was shut.
"The master motivation at that fourth dimension was to maintain a digital touchpoint with our customers and enhance their engagement with our brand. Besides, lockdowns everywhere led to a massive increase in social media usage, and nosotros wanted to capture and increment eyeballs to our social media feed with an improved, richer content," said Depression.
Her livestreams average 300 viewers, with the highest omnipresence so far being 651 on June half-dozen. The typical contour is female person, either a professional or business owner, and anile between 30 and 50.
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Duncan White, the Asia-Pacific marketing head for Vestiaire Collective, a retail platform for pre-endemic fashion, echoes similar observations. He said: "Nosotros take seen the growth in terms of the apply of this channel for fast manner and FMCG products and more than recently began to also see it every bit an avenue for higher price point items. However, this is still at the relatively early stages.
"Singapore as a market is also divers past proximity, with luxury retail locations being hands attainable to consumers to collaborate with the product at any time they want. The notion of using live commerce as a platform for luxury would likewise and so serve to build product awareness as opposed to purchase conversion."
And then far, Vestiaire has done livestreams only for the Hong Kong market, where it works with influencer hosts to retail bags, shoes and accessories. Just at that place are plans to host i for Singapore "in the upcoming months" said White.
There are pros and cons to livestreaming, he added. While it may be an bonny interactive shopping experience where popular hosts talk through the specifications and weather condition of the pre-loved items, and offer styling tips, viewership tin can vary depending on interest level in the topic and pre-upshot publicity efforts.
"As products still have a relatively higher sale indicate, users may still prefer to view the product in person before making a purchase determination, Also, each item is a unique piece, so in that location needs to be a residuum in terms of ensuring a good breadth of products to counter user fatigue for a better render on investment."
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Style Theory, Southeast Asia'south largest circular fashion platform offer rental, resale, assignment and restoration services for design apparel and bags, has held livestreams in-store with hosts such as beauty influencers Drea Chong and Cheryl Wee and subsequently on Instagram.
Co-founder and chief operating officer Raena Lim said: "Nosotros institute that what worked for our personality-led livestreams pre-COVID-19 was the high levels of immediate audition-host interaction, and the potential for hosting postal service-livestream fringe [concrete] events that would bolster RSVP interest and set the stage for higher date at time to come virtual or physical events.
"With our livestreams on Instagram, there is tremendous potential for further innovation in content and format, specially as platforms themselves whorl out new features to enable seamless streaming and collaboration."
Lim finds that her experiences with customers in Singapore and Indonesia take been "promising considering of the openness of these consumer markets" and the brownie the brand has built over the years. The audition tends to be 85 per cent female in the age range of 25 to twoscore years old.
Lim said: "As an established resale platform for luxury bags in Southeast Asia, we are also able to offer our livestream customers interest-free payments plans and a competitive returns policy, giving shoppers the ability to buy high quality, loftier-value numberless through livestreams with confidence.
"We've seen unlike levels of engagement beyond the dissimilar formats, but typically with the improver of a KOL [key opinion leader] or online personality, viewership is higher – sometimes in the four-digit range – every bit nosotros are able to tap into their post-obit likewise."
Louis Vuitton's Footling Ruby Book debut was compared with other Taobao rooms selling discounted fast manner, while Dior's broadcasts accept fatigued flak for tedious conversations and a lack of multifariousness. The path to ringing tills is not shine-lined, but paved with considerations on technicalities, brand exclusivity and identity, and audience affinity.
One of the benefits of livestreaming is its power to bring a product to life in a more experiential way, said Net-a-Porter's primary marketing officer Sheena Sauvaire. "[Customers] can encounter details of the products shut-upward, hear near the brand story, inquire questions live and meet how our editors style each piece. As the stream is in the site, when customers are more adult in the purchase path, it has a greater propensity to drive product sales."
On the other mitt, LuxLexicon's Low feels that a concrete store is "even so better in creating that dimension of human bear upon and warmth and providing an immersive brand experience for shoppers, more so for luxury retail given the need to bear upon and feel a concrete item."
Luxury brands are thus likely to tread the livestream ground charily until they've a solid strategy in blending offline and online touchpoints, such that one inspires confidence to purchase loftier-priced items in the other.
Fashion Theory'south Lim said: "Livestreaming, particularly when alive product reviews or styling elements are introduced, helps to bridge the gap between shopping online and trying it in person. Information technology lends itself particularly well to luxury retail as it can provide an interactive, personalised experience that shoppers seek when booking private viewings in offline spaces. This closes the loop for them when it comes to shopping for luxury online."
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