Dramatic changes in the world have left their mark on consumer habits. Among the changes brought about by the pandemic was a massive growth in e-commerce, so significant that in America, according to Shopify’s research, it grew more in just three months of 2020 than in the entire last decade. The growth of e-commerce was certainly expected as physical shopping became impossible or overly complicated during the pandemic, which is why many turned to the internet in search of everyday necessities.
Possible decline of 0.1%
A study conducted by eMarketer showed that nearly half of consumers worldwide redirected their spending to online channels during the early months of the pandemic, purchasing across all categories: from groceries, clothing to electronics. Although some believe that these changes, which are good for e-commerce, are only temporary until the pandemic settles down, eMarketer’s research shows a somewhat different picture and suggests that these changes indicate how e-commerce will develop in the future.
– Even when all physical stores reopen, we predict that e-commerce will lose only 0.1 percent of its share of total sales – states the eMarketer study.
Whether e-commerce will continue to grow strongly after the pandemic remains to be seen, but we know that the recent boom in e-commerce has made a significant shift, and that shift is towards a landscape of e-commerce that has become significantly more competitive with products that have not previously been purchased online.
'Made in China'
Changes in the e-commerce landscape have also been contributed by people who have not previously used this channel for shopping, particularly the older population, while younger individuals have only increased their online spending, especially in the video game segment. The growth has also been fueled by product categories that were not previously so popular in online trading, such as groceries, sports home equipment, and care products, as well as the fact that many small and medium-sized enterprises have stepped into the world of online sales for the first time, thus increasing the number of online retailers both wholesale and retail.
During the pandemic, another method of selling came to the forefront of public interest, although it has existed in China since 2016 thanks to the Chinese online shopping platform Taobao. This is livestream shopping or e-commerce that allows customers to buy products directly ‘from the video’. This method of shopping includes video content that is broadcast live, then two-way communication, meaning that at any moment the customer can ask the seller a question about the product, as well as the ability for the viewer, i.e., the customer, to buy or save a product directly from the platform being broadcast live with one click. In a way, livestream shopping is just an upgrade to the already well-known, old television shopping, only that before you had to dial a number on the screen to order a product, and on new platforms, you can do all of that with your smartphone in a few clicks. Although this sales method has existed for several years, it gained more prominence during the pandemic.
Payment by message
How popular this method of shopping is in China is best illustrated by the fact that for Singles’ Day, when discounts are traditionally offered, Taobao organized an eight-hour livestream shopping event hosted by Chinese influencer Viya, which attracted over 43 million customers.
– This type of shopping is interactive and allows for comments, likes, questions, and so on. Moreover, it makes selling easier as it does not require customers to be in front of the television, but they can follow your sales on their mobile phones wherever they are at that moment. Although livestream sales are not limited to specific product categories, women’s fashion, sports equipment, and home goods are sold the most this way – says Marcel Majsan, president of the eCommerce Association of Croatia, adding that it can be concluded from this that the future of e-commerce lies in greater interaction with customers and greater flexibility in shopping.
For example, in China, it has long been a trend to pay using the WeChat app (something like WhatsApp), so it is very possible that it will soon come to the Western world.
Deeper connections
Although shopping via live streaming is coming to the West timidly, the Chinese are making every effort to accelerate it in every way. They are doing this by hiring many European speakers and influencers who offer Chinese products to customers in their language area during livestream- sales to get closer to customers, facilitate communication, and offer authentic sellers.
