As the COVID-19 pandemic has led to 'Untact' lifestyles, online consumption through open markets (ex. eBay, Amazon, etc.) and social commerce platforms (ex. Coupang, CommetSold, etc.) have been activated, and the competition between these two platforms has also become fierce. Open markets enable direct transactions between producers and consumers, simplifying the distribution process, whereas social commerce platforms have lowered entry barriers, making it easy for anyone to become a seller.

Within the competitive landscape of these two platforms, live commerce (Live Streaming + E-Commerce) has emerged as a new trend, offering both the advantages of shortened distribution paths and low entry barriers. Today, we will delve into the benefits that SMBs (Small-Medium sized Businesses) can derive from adopting live commerce, and how Shoplive's live commerce solution can maximize these benefits.

The Growth Potential of Live Commerce

The growth potential of live commerce in Korea was highlighted in a presentation at last month's 2024 Live Commerce Conference, "Labang Con." According to the data presented, the Korean live commerce market size in 2023 reached 3 trillion won, marking a 45% increase from the previous year, with views also surging to 3.7 billion, a 102% increase from 1.8 billion. Additionally, the average transaction value per broadcast jumped to approximately 3.83 million won, an 83% increase from 2022. This signifies that live commerce is steadily becoming a more significant part of the online purchasing landscape.

Reasons SMBs Should Adopt Live Commerce

According to data released by Naver Shopping Live, in 2021, SMB transactions increased by 3,250%, accounting for 55% of the total transaction volume, indicating more active transactions among SMBs than large corporations. Unlike large corporations that can execute high-cost marketing based on large capital, SMBs, which typically have more limited budgets, can overcome these limitations through live commerce.

• Low Entry Barrier
  
  Live commerce allows for easy market entry of products without complex technical requirements or high initial investments. Any SMBs can start live commerce with a phone or laptop. This provides a much lower entry barrier compared to traditional online sales channels, helping SMBs to quickly gain competitiveness and enter the market.

• High Conversion Rate
  ‍
  According to iResearch, the average purchase conversion rate for traditional e-commerce is approximately 0.37%, for social commerce it's around 6-10%, and for top live commerce platforms, it can reach up to 20%. This is because live commerce enables immediate engagement and trust-building with the viewing consumers through interaction, positively influencing their purchasing decisions. Therefore, compared to traditional online marketing channels, live commerce shows a higher purchase conversion rate relative to cost, leading to a higher ROI (Return on Investment).

• Shoppertainment
  ‍
  ‍Live commerce provides a 'Shoppertainment' experience by combining shopping and entertainment, which can increase the Customer Lifetime Value (LTV). The entertainment elements offered in real-time increase customer engagement and brand affinity, improving repurchase rates and customer loyalty. This plays a crucial role in allowing SMBs to build a more stable revenue base and achieve sustainable growth.

Shoplive's Ideal Integrated Commerce Solution for SMBs

Live commerce can be conducted on large platforms that are currently available. However, it is challenging to secure viewership customers after the broadcast ends. In contrast, by adopting Shoplive's live commerce solution on their own mall or platform (mobile application, website, etc.), businesses can directly live stream, creating long-term customer value through new customer acquisition and retargeting.

Shoplive provides an integrated live commerce solution that SMBs can easily integrate and use on their own malls or platforms. Designed with stability and ease of implementation in mind, Shoplive includes live streaming, customer engagement tools like pop-ups, and data analysis features to support SMBs in effectively operating live commerce. Additionally, Shoplive offers customization beyond the basic UI provided, allowing SMBs to tailor the user interface to their desired direction.

Use Case

UMER: Achieving over 20,000 views during a 1-hour live broadcast, doubling the sales

Umer integrated Shoplive solution to their official website and application starting from the A/W season collection. Through this, they attracted over 20,000 viewers during the live broadcast and achieved sales more than double the usual, marking a high level of success.

Related Article: Expansion of Live Commerce Broadcasts in the Fashion Industry... 'UMER' Draws Attention with Visible Results

Moomooz: Achieved a total of 1,400 viewers and sales of 16 million won just 26 minutes into their first live stream

After employing Shoplive solution, 'Moomooz Essential' achieved 1,400 viewers and sales of 16 million won just 26 minutes into their first live stream. The live stream with the highest sales was the children's clothing brand 'Pimpolo', which recorded 275 million won in just 2 hours. Since its launch, Moomooz has recorded a growth rate of 200% annually, achieving 380,000 members, 1 million cumulative orders, and a cumulative transaction amount of 100 billion won.

Related Article: Rapid Growth of 'Moomooz,' a Parenting Curation Platform for Busy Parents

‍