Saturday 10th July 2021
Virtual shopping parties
Startup relies on the new online shopping trend
From Alexandra Dietel
Online shopping experienced an upswing during Corona – the startup Livebuy wants to turn it into an experience. At live shopping parties, customers can test the products live with stars like Kylie Jenner and buy them directly. Livebuy founder Alex von Harsdorf explains why the trend from Asia is also coming to Germany.
Online shopping has experienced an upswing due to Corona and Lockdown. Instead of meeting friends for a shopping spree, many are now shopping in online shops, for example from retailers. But shopping on the websites is not that exciting – and they certainly do not replace a shopping party. “Nobody invites their friends to an online shop that is boring. Only the possibility of online shopping is not enough for a social event – at least not when you are in an online shop that only consists of texts and images and a buy button, “says Alex von Harsdorf, one of the founders of the Berlin company Livebuy in conversation with ntv.de.
In particular now that retailers are allowed to reopen their stationary stores, online providers are looking for ways to offer their customers entertaining online shopping opportunities. The startup Livebuy therefore offers live shopping events with friends – virtually. The company sells its developed software to customers such as Douglas, which allows users to shop via live streaming on the Douglas website. Livebuy was launched in October last year – companies such as Tchibo, Dior and Lancome already use the start-up’s live stream software on a regular basis.
But how does live shopping work? In principle, the live events are structured like an Instagram story – like tele-shopping, only via the Internet. In the videos, stars, influencers or manufacturers show and explain the products – as a customer, you can ask questions via the live chat and interact with other users. If you like a product, you can put the goods directly into your shopping cart and buy them during the live stream. These websites now host up to eight hours of live shopping streams in four or five parallel channels. Livebuy does not see how many users are connected to each event – however, the success is shown by the product sales.
According to von Harsdorf, live shopping is more successful than normal online shopping primarily because it gives brands and products a face. “If I go to a website today and find out about products there, I only see glossy pictures and logos and I don’t even know who is behind them. And people want stories and like to buy from people who they like them. And live shopping is the unique chance that I can also introduce retailers or manufacturers of all kinds of products, “says von Harsdorf.
“From farmer to superstar”
A trend that is particularly successful in China. The online giant Alibaba is a pioneer in the Chinese market. Von Harsdorf assumes that around 20 percent of total e-commerce sales in China in 2021 will be generated via live stream events. Due to Corona and Lockdown, live shopping also became an issue in Germany. “Overall, you can already see from the numbers that live shopping is extremely successful and has been very well received. We are therefore convinced that in a few years’ time it will be an integral part of every shopping experience.”
And it is not just the “Beauty” and “Fashion” segments that use the live shopping events to reach their customers. Farmers and food producers are also jumping on the bandwagon. As an example, von Harsdorf mentions the family business “Karls Erdbeerhof” from Mecklenburg-Western Pomerania. The company was part of an early Livebuy customer. “The farm has been doing a lot of live streaming since the beginning of this year – for everything to do with strawberries! And at the same time, Douglas Kylie Jenner goes live. So you have the full range from farmer to superstar,” says von Harsdorf.
Instagram and Youtube are entering the market
But live shopping should not only take place in normal web shops. Social media platforms such as Instagram also want to offer live streaming events on their apps in the future. “We know that many companies are already working on similar offers for their platforms. Instagram is testing this in the USA, YouTube has announced tests. Tiktok comes from China and is therefore already very much involved in the whole topic,” said von Harsdorf. However, the founder is not worried about the growing competition.
“I open Instagram because I want to distract myself. I open Youtube because I want to see a certain video. And I visit a webshop because I want to find a certain product. So different platforms will be used for different buying intentions.” Similar to shopping in the city center, according to von Harsdorf, customers also choose live shopping events based on different needs. If you are looking for a specific beauty product, you are more likely to visit the live shopping stream on the Douglas website. If you want to be sprinkled and inspired, according to von Harsdorf you shop more on Instagram and Co.
In addition, Livebuy has an advantage over social media platforms. If you shop on Instagram via live stream, Instagram also reveals your data. Livebuy, on the other hand, synchronizes the shopping cart in the background – as a customer, however, you stay on the website of the respective provider. Check-out and logistics also remain in the hands of the online shop. Regardless of which live shopping option you use – Von Harsdorf assumes that “there will soon be live shopping on every corner”.
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