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Explained: How video commerce is helping online shoppers try before they buy

Explained: How video commerce is helping online shoppers try before they buy
  • E-commerce players are finding ways to bring the product closer to shoppers via video or live commerce.
  • The Indian live ecommerce market is expected to generate a gross merchandise value of $4-$5 billion by 2025.
  • Nykaa, Sugar Cosmetics, Myntra, and Amazon have started offering customers a live ecommerce experience.
Do you feel the need to try on your lipstick before buying it? Or ensure that a product suits your look? For this, you might no longer have to walk into a store. E-commerce players are finding ways to bring the product closer to shoppers via video or live commerce.

Live commerce, video commerce or shoppable videos are AI-powered tools that make video ads more interactive and the experience more immersive. From virtual try-ons to Instagram filters that help choose a product or live sessions hosted by e-commerce players — the definition of live commerce itself is wide and expanding — as technology evolves.

Apart from making the experience more actionable, video commerce also bridges the gap between offline and online shopping experience.

AR, AI and algorithms

One of the early adopters of this trend is online cosmetic retailer Nykaa that has made L'Oreal's advanced, Al-powered virtual try-on technology ModiFace available to its shoppers.

ModiFace uses an advanced face tracker augmented reality (AR) algorithm that scans facial features like lips, eyes, cheeks, and hair to provide a real-time virtual experience of a cosmetic product.

Lenskart too uses a 3D try-on version which allows shoppers to make a video of themselves and check how well a spectacles frame suits them.

Sugar Cosmetics India recently launched an Augmented Reality Instagram filter in a campaign called ‘Wheel of Love’. The wheel will pick the best shade of lipstick and foundation that best suits the customer.

Live launches and live shopping

In the live version of video shopping, influencers demonstrate newly launched products on their social media feeds wherein you can shop and pay simultaneously.

Myntra too has a live ecommerce platform called M-Live where experts and influencers host live video sessions of a product along with styling ideas — facilitating real-time engagement between customers and brands. This simultaneously breaks into the elite personal shopper-like experience for online shoppers.

For its upcoming Great Indian Festival, Amazon is trying it too and is roping in 150 influencers that will provide consumers with an interactive experience.

“Customers can have the live feel of shopping without having to physically be in a store. Amazon’s shopping is thus becoming more intuitive through artificial intelligence,” said Noor Patel, Vice President of Amazon India.

More engagement

It looks like these live commerce initiatives are working too. According to a report by Meta’s business partner The Cirqle, launching an AR filter generates customer engagement of 75 seconds — that’s four times more than video content.

Canadian fashion retailer Aldo reported a 308% engagement rate after a live stream shopping event in 2021.

Due to the unique advantages it brings, live commerce will grow too. According to a report by Redseer, India's live commerce market is expected to generate a gross merchandise value (GMV) of $4-$5 billion by 2025. This is currently being led by beauty and personal care (BPC) brands.

China’s live ecommerce market already forms 9-10% of gross merchandise value (GMV), according to McKinsey Report 2021.

Along with online retailers, even offline retailers are chasing the immersive experience. “After the pandemic, we are trying to integrate a more immersive experience for retailers who visit malls everyday. Malls have upgraded their mobile applications allowing the consumer to check out brands beforehand, provide customer support, and send vouchers,” said Shishir Baijal, chairman and managing director of Knight Frank India.

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