LIVE COMMERCE BECOMES NEW MARKETING TREND

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The so-called "live commerce" has emerged as a new marketing channel for retail companies in the era of COVID-19. This comes to show that marketing strategies that target young consumers, who are used to video streaming are becoming the new norm. Here's more.

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A fashion company holds a live broadcast, known as "live commerce". It showcases new clothing lineups to some 10,000 customers watching online.

[Soundbite] "It's a wool blend coat, but it's perfect for in-between seasons. It's very light."

When the host tries on an outfit, customers leave comments in real time.

[Soundbite] "We're receiving lots of replies now. Some say it's very stylish and pretty."

Unlike home shopping, live commerce allows customers to purchase products right away by clicking on the screen and checking the inventories. After a one-hour broadcast, more than three times the target amount was sold.

[Soundbite] KIM JOO-HYUN(SHINSEGAE INTERNATIONAL) : "Consumers can enjoy the comfort of online shopping while communicating with sales clerks as they would do at brick-and-mortar stores."

One department store even sold seafood via live commerce at a nearby fish market.

[Soundbite] "Slide it down like this."

Vendors are shown tasting their own seafood to lure customers. Launched as a new marketing channel in the era of COVID-19, live commerce is gradually expanding to include not only fashion and food, but also pottery and hotel packages. It targets young consumers, from teenagers to those in their 30s, who prefer to buy products after watching them on videos. It's also a cost-effective marketing strategy requiring only filming staff while bringing in high profits by drawing tens of thousands of customers at once.

[Soundbite] LEE JI-EUN(LOTTE DEPARTMENT STORE) : "We're receiving many inquiries from our partners and we are expanding it to multiple channels."

With live commerce agencies receiving tens of billions of won in investment these days, the live commerce market is predicted to grow exponentially in the era of non-contact services.