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LIVE ON SOME

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Facebook give up their venture for LIVE Shopping

Facebook has made it official that that they will give up their venture for LIVE Shopping. And as for TikTok and Instagram, there are some persistent rumors that they will follow the example from FB. It’s clear that Live on Social Media has not lived up to expectations. But what’s interesting is that in Asia it is a smash hit! And there, LIVE will continue also on Facebook.

But why! 🤔

So the obvious question is of course – why does it work in Asia but not in USA and Europe? I have come the conclusion that three of the most significant reasons, are Culture, Control and Branding!

Branding

In Europe and USA 70% of live shopping takes place on own website or webshop. I don’t have the corresponding figure for US market, but the figure indicates that vendors in USA and Europe have built their businesses for a long time based on their own “branded platforms”. Businesses in Asia however seem to be less reliant on their own websites with focus on third party platforms.

Control

Operations in USA and Europe have for long time developed their business with websites using integrated shopping features, thus they want to retain control over both technology and customer. The opposite are seen in Asia where operations are more dependent of 3rd party platforms.

Culture

In general people in USA and Europe are unwilling to be visible without control over “who’s watching me”. This is another factor, and probably the most important one of why LIVE Shopping on SOME has failed.

As mentioned, in Asia Live shopping completely exploded when Alibaba launched its LIVE Shopping on their platform. Today it is estimated that the market value 2023 in China alone will reach $600 million and USA $25 million.

Karaoke bars to blame?

Perhaps history of Asia and how individuality or less importance of individuality in society, plays a certain role here. Added to that, overcrowding might contribute to less need for integrity. Maybe the karaoke bar is proof of this, or perhaps it is the karaoke culture that is the reason, learning people  not be afraid of making a fool of themselves!

Other factors

Age differences

When watching LIVE Shopping in Europe and the USA, majority use PC. But in Asia, majority use mobile. In this context, perhaps it should be mentioned that while it is generation Z and Millennials who are driving the development in Asia, the viewer in Europe is between 32-43 years old.

Not a homogeneous market

Surveys clearly show that people has different expectations on a “LIVE Show” depending on what country they live in. We also find various industries driving development of Live shopping in different countries. One mutual factor however, is the demand for “Shoppertainment” seen in all countries in Europe.

LIVE Shopping on own
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References

  • Facebook Live Shopping will be going away on October 1 2022 (Facebook)
  • Shoppertainment Is-Landing In Europe (Alizila)
  • Live shopping the future-trend of e-commerce (Forbes)
  • How Live-commerce-isv transforming the shopping experience (McKinsey)

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