<strong>The Rise of the Next Wave of E-commerce: Live Commerce</strong>

India’s retail sector is currently undergoing a significant transformation due to the incremental rise in e-commerce and the influence of technology on the shopping experience. It is projected to expand to $4.5 trillion by the end of the decade, according to Deloitte India and the Shopping Centre Association of India. To thrive in this highly competitive economy, retailers must be willing to adapt and innovate. They need to develop closer relationships with their customers to win their spending by increasing investment in personalized and real–time retail efforts. We witness businesses quickly adopting cloud technologies to effectively manage and process data for real-time insights. The retail sector is also looking at adopting several tools like live shopping for real-time engagement with customers.

India’s festive season peaks ahead of Diwali in late October and runs through December and is projected to be higher as compared to last year, but probably not enough to ramp up the speed of what is already the world's fastest-growing major economy, according to a recent survey of economists polled by Reuters. Festive season sales account for much of the footfall and revenue for consumer goods companies, especially those into consumer durables. The shift to online shopping and exponential growth in India’s retail sector are highly driven by rising incomes, the expanding middle class, and rapid digitalization in the country. Furthermore, by harnessing the power of technology, sustainability, and forward-thinking strategies, Indian retailers are creating an ecosystem that not only meets evolving consumer demands but also sets new benchmarks for value, engagement, and unforgettable shopping experiences.

Live commerce is also transforming the online shopping experience by blending entertainment with instant purchasing. It is a new approach in e-commerce that combines real-time engagement with online shopping, empowering e-commerce websites to go beyond static content and deliver personalized, interactive, and real-time experiences to users.  By leveraging these capabilities, e-commerce websites can enhance user engagement, build trust, and ultimately drive conversions and revenue. According to McKinsey & Company, live-commerce-initiated sales could account for 20% of all e-commerce by 2026. This innovative sales channel has quickly evolved and now holds a 10% penetration rate, making it a crucial element in the next wave of e-commerce.

Enhancing the e-commerce experience

One of the key advantages of live shopping is its ability to enhance the e-commerce experience. By providing live interactive streaming videos or events, brands can engage with customers in real time, making shopping more personalized and enjoyable. Features like live demonstrations, Q&A sessions, and limited-time discounts create a sense of urgency and excitement, encouraging immediate purchases. In addition to shoppable livestreams, several players offer solutions that support live auctions, personal shopper experiences, and e-commerce-related video chat for customer service.

Live shopping stands out in a crowded e-commerce landscape by offering a unique and engaging shopping experience. Brands can bridge the gap between in-store and online shopping experiences, providing a more immersive and memorable event for customers.

Social media gives the real push to Live Shopping

When integrating live commerce into marketing and sales initiatives, social media platforms give the right push. Businesses may utilize influencer marketing to reach a larger audience, leverage chat moderation and AI-generated comments to improve the live experience, and advertise upcoming live shopping events on social media. The reach and engagement are further increased through post-event social media promotion and multi-channel streaming.

For brands, live shopping on social media sites is a useful marketing tactic. They can interact with their followers, obtain client information, and increase revenue. Brands can create relevant content and advertisements that appeal to various audience segments and satisfy their preferences by comprehending the intent of their target audience.

AI and GenAI will Drive Customer Benevolence

Artificial Intelligence has emerged as a major force in online retail. It functions similarly to a digital assistant that learns your preferences through an analysis of your past purchases and online shopping habits. Similarly, generative AI is a powerful technology that leverages huge amounts of datasets to create personalized experiences and streamline various aspects of retail operations. It provides numerous advantages for a variety of purposes and isn't confined to just one. GenAI extends its capabilities to customer interactions by generating relevant responses in various formats, such as text and visuals, based on real-time data. They can spot upselling and cross-selling opportunities and handle client inquiries with efficiency. The real-time powers of Gen AI also extend to pricing optimization, where it can modify prices in response to market conditions, demand patterns, and competition pricing.

Written By -- Ranga Jagannath, Senior Director, Agora