Data from Bambuser shows the potential of Live Video Shopping
Swedish live video company Bambuser launched Live Video Shopping late September this year and by now several brands and e-commerce sites have used the technology. The first stats show that as many as 20% of viewers add items to the cart during a live show and that up to 25% of the viewers interact through the chat and by sending likes.
The mobile streaming software company Bambuser launched Live Video Shopping in September as the first SaaS solution in Europe to cater a live streaming product to brands and retailers enabling live streaming with integrated shopping features on e-commerce websites. Since then, retailers such as CAIA Cosmetics, NA-KD, Monki and Lyko have used the technology to sell and interact with their customers.
“We were already aware of the interest in this macro trend in e-commerce when we started to build the product and during the autumn we have received many questions regarding its performance. What was crucial to understand, apart from the industry attention, was whether there was a commercial viability in it for our customers, and thereby for us. The statistics from the first live broadcasts already show, at an early stage, that this is the case and confirms the potential of Live Video Shopping” says Maryam Ghahremani, CEO of Bambuser.
The average live video broadcast has a viewing time of 11 minutes and 12.5% of viewers add a product to the shopping cart. Over 15% of viewers participate and comment in the chat and about 25% are active through the likes. Individual shows have reached an average of 18 minutes of viewing, with an add-to-cart rate of up to 20% and 25% interacting with chat and likes.
CAIA Cosmetics and Lyko
Earlier this autumn cosmetic brand CAIA Cosmetics made their first live show with founder Bianca Ingrosso directly on caiacosmetics.com, where she did a make-up tutorial. The average viewing time was 11 minutes, with 17% of the viewers participating in the live chat and 60% of viewers engaging through likes. The add-to-cart rate was 5% with a higher conversion than normal for the website.
“We are very satisfied with the response we have received from the Live Video Shopping event” says Mikael Snabb, CEO of CAIA cosmetics.
The hair care and beauty specialist Lyko chose to make their first live broadcast with unique offers and gift tips on lyko.se during the holiday shopping in December. They had an average viewing time of 16.5 minutes, with 17% chatting and 29% liking. The add-to-cart rate was 22%, followed by a higher conversion than usual.
“We are constantly working on improving our customer experience and we enjoy trying new solutions and trends. Live Video Shopping is a way to offer our customers more opportunities for interaction, as a complement to our stores, something that is difficult to create digitally” Says Kalle Eliason, CMO at Lyko, according to a press release on December 18.
Content strategy will be crucial
It is already clear that the content and set-up of the show significantly affects the results, and that interaction with the customer in the live chat is crucial.
“To simply live stream on your website will not do the trick, it’s about knowing your customers and creating relevant and engaging content for an entertaining and informative dialogue. When it’s done the right way, there is no other digital channel that gets as close to a physical customer meeting and generates such high conversion rates as Live Video Shopping.” concludes Maryam Ghahremani.
Live Video Shopping in China
A market where Live Video Shopping already is established as a key e-commerce channel is China. During 2018, Live Video Shopping saw growth of 400% on Taobao (Alibaba), generating sales of more than 133 billion SEK (100 billion RMB).
The estimated value of Live Video Shopping as an e-commerce channel is 587 billion SEK (440 billion RMB) according to Everbright. This equals almost 9% of the estimated total e-commerce market in China.
This is information that Bambuser AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was sent for publication, through the agency of the contact persons set out below, on December 30th, 2019, 09:30 CET.
Contact information
Maryam Ghahremani, CEO | tel: + 46 708 720 266 | e-mail: maryam@bambuser.com
or visit bambuser.com/ir
Certified Advisor
Västra Hamnen Corporate Finance AB | tel: +46 40-20 02 50 | e-mail: ca@vhcorp.se
About Bambuser AB
Bambuser was founded in 2007 as the world's first company with a platform for interactive mobile live video broadcasting and is a leading supplier in the live video segment. In 2019, Bambuser introduced Live Video Shopping, which enables live shopping directly on the brand's website. Bambuser is listed on the Nasdaq First North Growth Market and is headquartered in Stockholm.