The Rise of Live Shopping: A New Trend or Passing Fad?

Live shopping, popularized in Asia, is finding its footing in the US and Europe as brands adapt to interactive shopping methods. Despite initial successes, experts express caution regarding sustainability, questioning its appeal in regions where physical shopping experience remains essential.

In recent years, live shopping has emerged as a novel way for retailers to engage customers, blending entertainment with e-commerce. Take Kelsey Krakora, for instance. After transitioning from a full-time job at a steakhouse to selling clothes on platforms like Whatnot and Poshmark, she has turned live shopping into a lucrative venture. Her first show in November 2022 resulted in zero sales, but fast-forward to today, and she is now selling approximately 100 items worth around $1,000 per session during her two to three weekly live streams. "These events are inclusive, welcoming, and you can shop in your PJs without needing to go to a shopping mall," she explains.

The concept of live shopping is not new, especially in the Asia-Pacific region, where platforms like China's Douyin frequently facilitate live shopping events. However, it's recently started capturing the attention of brands in the US and Europe, following a trend long seen in shopping networks like QVC. This quick and interactive approach is appealing. As younger generations turn away from traditional cable television, live shopping hijacks the instantaneous nature of online shopping, something that’s become synonymous with platforms like Amazon.

The live shopping market is estimated to be worth about $32 billion, especially thriving in sectors such as fashion, cosmetics, and collectibles. A 2024 survey conducted by VTEX revealed that 45% of American consumers have engaged in live shopping events over the past year. Guillaume Faure, CEO of LiveMeUp, identified a pivotal moment for this trend: "When Instagram introduced Reels and when YouTube launched Shorts, we saw live shopping gain substantial momentum." Tutorials and live demonstrations, particularly in beauty or home decor, have drawn significant interest.

Despite the excitement, there are skeptics. Retail analyst Sucharita Kodali from Forrester Research expresses concern that live shopping may lack broad appeal. "Many companies have tried live shopping, but it simply doesn't scale in the U.S. due to our higher store density and consumers’ preferences for tactile experiences," she notes. Jonathan Reynolds from the Oxford Institute of Retail Management also distinguishes the differences between Western and Chinese markets, where influencers known as key opinion leaders (KOLs) have a firm grip on audience trust and engagement.

Even avid practitioners like Krakora recognize that not every product is suited for live-stream selling. She admits her preference for purchasing jeans in person, emphasizing the importance of fit and style comfort. Retail analyst Bruce Winder warns of potential pitfalls, including the risk of consumer addiction. "The excitement of watching a live shopping channel may lead some to overspend," he cautions.

Despite these reservations, major brands are diving headfirst into live shopping. Companies including Nordstrom, Kit Kat, Samsung, and L'Oreal have dabbled in selling through live streams. Poshmark's CEO, Manish Chandra, emphasizes the unique connection formed between hosts and shoppers, which can foster a sense of community, distinguishing live shopping from traditional retail experiences.

High-end brands are also leveraging this trend for greater market insights. The fragrance brand The House of Amouage, known for its success in China, partnered with Nordstrom to introduce live shopping in the US, having previously generated valuable feedback from their live streams on Douyin and Taobao.

As live shopping continues to evolve and more brands embrace the model, only time will tell if this innovative approach will become a mainstay in Western retail or remain a niche for certain markets and products.