Live Shopping & Influencers: A Brand Strategy

The Rise of Live Shopping in North America

Live shopping, a dynamic fusion of online retail, livestreaming, and social media platforms, has rapidly gained traction across North America since its introduction in October 2019.

Currently, this innovative approach accounts for over 13% of all e-commerce transactions in China.

However, the North American market is still in its early stages of adoption, witnessing influencers leverage their popularity to drive substantial sales of diverse products – ranging from fragrances and fresh produce to even unique items like rocket launch seats.

Early Adoption and Projected Growth

In Canada, Urban Decay, a prominent cosmetics brand, pioneered the “see now, buy now” concept through its initial live shopping event in October 2019.

Following this initial venture into what is often described as the “phygital” landscape, live shopping is projected to evolve into an $11 billion industry within the United States by year's end.

Key Considerations for Brands

Despite the growing excitement surrounding live shopping, its implementation presents several challenges for brand marketers.

A frequently asked question, raised in emails, webinars, and meetings, concerns the optimal selection of hosts for these live events.

Furthermore, establishing new industry standards for host selection, compensation, and required expertise is crucial.

Insights from a Live Shopping Startup

As the director of marketing and communications for a North American live-shopping startup, I have observed both successful implementations and valuable learning experiences among early adopters.

Drawing upon the evolution of the influencer marketing landscape, I aim to provide guidance on how brands should approach influencer host selection, compensation strategies, and ongoing coaching.

Key Terms and Best Practices

This article will also outline essential terminology that industry professionals should be familiar with to navigate this evolving market effectively.

Understanding these elements is vital for maximizing the potential of live shopping and achieving successful outcomes.

Leveraging Influencers from the Outset

Knix, a Canadian intimates brand established by women, operates on a model that is significantly strengthened by its engaged customer base and the ambassadors who represent it. The company successfully entered the $46 billion lingerie market, pioneering a new approach to leakproof undergarments, activewear, and loungewear – all developed based on genuine consumer input.

A substantial turning point occurred when the brand transitioned completely to a direct-to-consumer sales model in 2016. This shift prioritized building connections and maintaining open communication with customers through online channels. Knix also established a comprehensive influencer affiliate program, distributing products and offering exclusive 10% discount codes to the communities associated with its affiliate influencers.

In early 2024, Knix distinguished itself as the first intimates brand to utilize Livescale, employing live shopping to amplify the anticipation surrounding its swimwear collection launch. The event was led by influencer Sarah Nicole Landry, alongside actual Knix customers and the brand’s founder, Joanna Griffiths.

The initial live shopping event surpassed projections, achieving a sales conversion rate notably higher than the average for live shopping, and particularly impressive for a debut event. This success demonstrated a powerful synergy.

This innovative experience represented the first integration of social media tactics with the specialized knowledge of the Knix team. It featured interactive online polls, gamified elements, and streamlined purchasing options directly within the brand’s social media platforms, website, and email newsletter.

A key factor in this achievement was the deeply ingrained organic community that Knix has cultivated over several years. This was further enhanced by selecting an influencer host with a long-standing familiarity with the brand, enabling her to authentically advocate for its benefits.

Key Strategies Employed by Knix

• Direct-to-Consumer Focus: A complete shift to online sales fostered stronger customer relationships.
• Influencer Affiliate Program: Product seeding and exclusive discounts drove engagement.
• Live Shopping Events: Utilizing platforms like Livescale created excitement and boosted conversions.
• Community Building: Years of nurturing an organic community provided a strong foundation.

The brand’s success highlights the importance of authentic influencer partnerships and a customer-centric approach. By prioritizing genuine connections, Knix has carved a unique space within a competitive market.

The Significance of Expertise in Live Shopping

While celebrity-hosted live-shopping events often garner media attention, their impact on sales isn't always the most substantial.

Our data indicates that a meticulously planned script delivered by a genuinely enthusiastic presenter is more valuable than expensive celebrity endorsements, extravagant PR campaigns, or simply relying on popular names.

Lancôme's Successful Strategy

Since the onset of the pandemic, Lancôme has emerged as a prominent leader in live-shopping within North America.

In Canada, the brand successfully implemented a strategy focused on engaging smaller, highly dedicated audiences through events hosted by its own employees.

A Notable Singles’ Day Event

A Singles’ Day event held in November 2020 specifically targeted Mandarin-speaking Canadians, achieving an impressive 39% conversion rate.

This performance established a new benchmark for sales within the industry. The event was led by a Lancôme brand ambassador from within the company, resulting in a high return on investment due to minimized overhead expenses.

This success facilitated smoother scaling of Lancôme’s live-shopping initiatives.

The Key Opinion Seller Advantage

“Our analysis of numerous live-shopping events reveals a strong link between host type and sales conversion rates, with considerable variation in production setups,” explains Chanida Rayrolles, VP of product and influencer expert at Livescale.

“The term ‘Key Opinion Seller’ is used within the industry because these hosts excel at building trust and driving sales through their deep product knowledge and expertise.”

KOL vs. KOS: Understanding the Differences

What distinguishes a Key Opinion Leader (KOL) from a Key Opinion Seller (KOS)? The primary distinctions lie in audience size, cost, and the depth of their subject matter expertise.

KOS hosts are typically internal to the brand and possess extensive, long-term familiarity with the products they present, enabling them to confidently address any customer inquiry.

Although they may not generate traffic as readily as traditional influencers, the audience they attract demonstrates a higher propensity to purchase. Data from over 1,000 live-shopping events reveals an average sales conversion rate of 10.5% for KOS hosts.

In contrast, influencer hosts achieve an average conversion rate of only 0.61%.

The Role of Influencers in Driving Live-Shopping Success

Analysis of data concerning the most effective types of live-shopping hosts reveals significant insights – and has a demonstrable impact on a brand’s financial performance.

Rayrolles clarified that this outcome isn't necessarily a reflection on the overall effectiveness of influencers, but rather on the criteria brands employ when selecting collaborators. Live shopping presents a unique challenge, and consumers are discerning about where they allocate their spending.

Knix’s initial foray into live shopping involved partnering with Landry, a well-established influencer known as @TheBirdsPapaya, who also has a history of collaboration with the brand. The results were notably positive.

Activist Kenzie Brenna, who has also collaborated with Knix on social media and advertising initiatives, emphasized the importance of both genuineness and expertise. “Communities are averse to being unexpectedly prompted to purchase products they haven’t previously encountered in the influencer’s content,” she stated. “Therefore, cultivating enduring, trustworthy relationships is crucial for brands. Recommendations carry weight when they stem from genuine care for the community.”

Experts suggest a strategy of starting small and scaling gradually when considering the impact on e-commerce. Consistent sales and conversion rates are more closely tied to high engagement levels than to sheer follower count.

The success Knix experienced with Landry likely wasn’t solely attributable to her substantial Instagram following, which exceeds 2 million. A key factor was their pre-existing partnership, dating back to 2017, when Griffiths initially engaged Landry as a brand consultant.

“I was immediately impressed by her authenticity, her candor, and her writing skills,” Griffiths shared in a recent discussion. “She offered a remarkably fresh perspective. My intention was to support her in developing her business, and we’re delighted to have been a part of her journey.”

For social brands with established influencer relationships, we recommend adopting a hybrid approach for upcoming live-shopping events. This model combines the appeal of trusted influencers with the expertise of an internal Key Opinion Seller (KOS).

This strategy has been successfully implemented by brands such as Dermalogica, Vans, Tatcha, and L’Oréal internationally, achieving a balance between consistent sales and increased traffic. If robust influencer relationships are lacking, prioritize organic growth strategies to build community and generate organic traction.

“We are observing a growing trend of brands developing their own internal Key Opinion Sellers,” Rayrolles noted. “Companies like Skinceuticals in the U.S. have created internal influencers who consistently achieve high conversion rates and strong sales. Consistency and attentive listening to the audience are paramount for brands.”

Cultivating Influencer Partnerships for Mutual Growth

The power of robust influencer relationships is significant, as demonstrated by successful live-shopping strategies. Annick McLellan, co-founder of MXL Media, a Canadian live-shopping agency, highlights that advising influencers to promote events a week and an hour before launch yields remarkable outcomes.

A sustained partnership, where influencers feel invested, is far more valuable than isolated collaborations. Brands can foster this by prioritizing authenticity and potential over sheer follower count, alongside offering sales-based incentives.

Maximizing Event Visibility

Effective communication regarding live-shopping events should permeate all customer touchpoints. This includes utilizing newsletters, paid advertising, exclusive invitations, SMS messaging, social media platforms, and prominent website promotions.

Influencers with substantial Instagram followings, for example, can effectively leverage this channel to generate excitement well in advance of a live-shopping event. A commission-based structure further incentivizes increased promotional efforts.

The Direct-to-Consumer Advantage

McLellan emphasizes that the responsibility for nurturing customer relationships rests with brands, particularly when utilizing live shopping. Direct-to-consumer (DTC) brands are often the most successful adopters of this approach.

The DTC model provides brands with complete data ownership and a streamlined purchase path, allowing customers to complete transactions directly within the event itself. This eliminates the need for external redirects or complex checkout processes.

Seamless Integration and Accessibility

Platforms like Livescale enable brands to share live-shopping event links across various channels, including websites and social media accounts, without requiring users to download additional applications.

Conversely, some live-shopping platforms function as marketplaces, mirroring the traditional channel model of QVC and necessitating app downloads and event scrolling for access.

Long-Term Investment in Influencers

A direct-to-consumer approach simplifies influencer collaboration and facilitates the implementation of percentage-of-sales compensation. This allows for a more sustainable and mutually beneficial investment in influencer partnerships, minimizing platform fees.

While many brands currently engage influencers on a weekly basis for social media livestreams, live shopping may necessitate a revised strategy.

The Value of Extended Collaboration

Brenna notes that prolonged engagement with brands is highly valued by influencers. These extended collaborations build a strong foundation of trust and authenticity, resulting in more natural and impactful interactions with their communities.

Each successive collaboration benefits from a shared history, making the hosting experience more effortless and genuine for both the influencer and the brand.

Anticipating Live Shopping: Preparing Your Audience

While unexpected delights are welcome, providing advance notice to your audience regarding a live-shopping event is crucial.

According to McLellan, a one-month preparation period is generally sufficient for brands initiating a live-shopping strategy.

Influencers, however, benefit from a two-week timeframe to familiarize themselves with this novel engagement method.

This preparation allows them to effectively communicate with their followers and generate pre-event enthusiasm through online channels.

The Urgency of Live Shopping Adoption

As the retail landscape faces potential instability, a key takeaway emerges: the time for brands to embrace live shopping is now.

Expanding direct audience relationships and cultivating a network of influential collaborators are paramount in today’s market.

Live shopping presents a unique opportunity to achieve both of these objectives.

• It allows brands to bypass traditional advertising methods.
• It fosters a more personal connection with consumers.
• It enables the creation of a dedicated community around the brand.

Successfully implementing a live-shopping strategy requires proactive planning and influencer engagement.