Consumers intend to increase their gift spending by over 30% in the year 2021, according to Klarna's report.
The American retail landscape is witnessing a significant shift, with livestream shopping emerging as a rapidly expanding sector. According to recent reports, the U.S. livestream shopping market, which saw meaningful growth from 2021 to 2023, is projected to exceed $60 billion by 2026.
The surge in livestream shopping can be attributed to several factors. Firstly, improved 5G mobile streaming technology has facilitated better live streaming experiences, aiding mobile commerce growth, which accounted for 60% of global e-commerce sales in 2023. Secondly, the format's interactive nature, with conversion rates reaching up to 20%, has proven effective in converting viewers into buyers.
The trend is particularly popular among younger demographics such as Gen Z and Gen Alpha. Platforms like TikTok Live, for instance, averages over 2.2 million concurrent viewers, with fashion-related streams reaching about 640,000 viewers. Major retailers including Amazon, TikTok, Shein, and niche platforms like Whatnot are actively tapping into live streaming for e-commerce, reflecting broad industry investment.
Investors are also taking notice, with livestream shopping platforms like Talkshoplive, Ntwrk, Shopshops, and Whatnot bringing in millions of dollars in investments this year. Klarna, a popular buy now, pay later services platform, found that 60% of Gen X, 76% of millennials, and 75% of Gen Z consumers seek flexible payment options, indicating a potential market for these platforms.
The holiday season is set to further boost the growth of livestream shopping. Retailers are staffing up ahead of the holiday season to accommodate the expected increase in sales, and department stores are the second most popular choice for holiday shopping, with 37% of respondents planning to shop there. Big-box retailers are also a favourite, with 62% of respondents planning on shopping with them during the holiday season.
While traditional TV shopping in the U.S. remains stable, live stream shopping is growing at a much faster pace, driven by younger, digitally native consumers and the integration of social media. By 2026, McKinsey predicts that live commerce could account for 10–20% of all online sales in the U.S., signaling a major shift in retail sales channels.
In summary, livestream shopping in the U.S. is a rapidly expanding sector, growing from a meaningful base in 2021-23 to a multibillion-dollar market expected to exceed $60 billion by 2026. This positions livestream shopping as a key future driver of e-commerce growth in the American retail landscape.
- AI and finance greatly impact the livestream shopping market, as the rise of AI-powered shopping recommendation systems enhances the user experience, leading to increased sales.
- The integration of artificial intelligence technology is evident in various aspects of livestream shopping, from product analysis to viewer engagement, ultimately contributing to stronger business ties and fostering a seamless shopping lifestyle.
- In addition, financial institutions are recognizing the potential of livestream shopping platforms, as accurate AI-backed fraud detection systems minimize the risk of fraudulent transactions, making these platforms more secure and attractive for investments.
- Moreover, advanced AI technology enables dynamic pricing strategies, ensuring competitiveness in the fast-paced business environment while still delivering cost savings to consumers, leading to improved customer satisfaction and a continuously evolving American retail landscape.
