Will Live Commerce be imported from China? — Ronald C. Pruett, Jr. // The Boston Associates

Ronald C. Pruett Jr, Managing Partner at The Boston Associates, explores the potential of live commerce on television for eCommerce brands. In the United States, the live commerce scene has been gradually gaining traction, with numerous platforms and brands exploring the potential of this emerging trend. While challenges exist, the stage is set for live commerce to flourish. Today, Robert discusses whether live commerce will be imported from China.
About the speaker

Ronald C. Pruett, Jr.

The Boston Associates

- The Boston Associates

Ronald is the Managing Partner at The Boston Associates

Show Notes

  • 04:09
    The renaissance of live commerce in Western markets
    In 2015, live commerce boomed in China with platforms like Alibaba integrating live streaming for influencer-led broadcasts, resulting in billions in annual sales. While live commerce initially had limited success in North America, its now experiencing a renaissance in Western markets.
  • 06:45
    Social media platforms and commerce integration
    Over the last decade, North American platforms like Shopify have become more integrated through payment systems, logistic systems, and 3PL. Elon Musk is likely planning to integrate various eCommerce components into Twitter, resembling the integrated models seen in China.
  • 08:11
    Mastering the art of selling
    Chinese influencers, who were early adopters of live streaming, focused on mastering the art of selling through a dropship model. It proved to be a successful and asset-light approach, which is now being embraced by many in the United States.
  • 08:48
    Live commerce in the United States vs China
    The main blocker is the abundance of platforms and options available in the United States. Whereas the platform options were limited in China, the US has an overwhelming number of opportunities, making it challenging to build audiences and establish successful live commerce channels.
  • 10:48
    Live commerce adoption challenges in the United States
    The challenge is creating consistently available programs that can maintain audience interest and drive sales. While shoppable videos have seen faster growth in the US, live commerce will likely just be another channel mix in most brands' and marketers' distribution strategies.
  • 11:42
    Live commerces evolution in the US and niche opportunities
    Live commerce has been slow to develop in the US, but transaction-oriented communities have emerged in niche markets like collectibles and specialized hobbies. Ultimately, success in live commerce requires aligning content, community, and commerce within specific niches.
  • 14:13
    The evolution of direct to consumer commerce
    Traditional linear cable and social platforms have been slow to adapt. However, the rise of CTV platforms and brand streaming networks indicates a new wave of direct-to-consumer commerce driven by engaging content and readily available technology.
  • 17:48
    The future of live commerce
    Major players in commerce and search may not necessarily dominate live commerce as the functionality becomes commoditized. Dominance in live commerce will be determined by who has the audience, the distribution size, and the ability to entertain in order to sell.
  • 19:34
    Live commerces expanding opportunities and evolving metrics
    With technology and the pandemic driving experimentation, companies like Walmart, Poshmark, and YouTube are entering live commerce. As platforms like Roku and Hulu continue to grow, new opportunities for product sales are emerging, and the metrics for success in this space are evolving.

Quotes

  • "Up to nearly 900 billion in goods annually now are sold through Chinese live streams." -Ronald C. Pruett Jr, Managing Partner, The Boston Associates

  • "It looks to me like Elon's piecing together, through Twitter, the components to build something you'd see in China, and that the Chinese have had for at least a decade now." -Ronald C. Pruett Jr, Managing Partner, The Boston Associates

  • "Over the last 10 years, Shopify and other platforms in North America have been becoming more integrated through payment systems, logistic systems, or 3PL." -Ronald C. Pruett Jr, Managing Partner, The Boston Associates

  • "I think in comparison, you'll see something like shoppable video, which is building itself in parallel to live commerce, take off faster in North America." -Ronald C. Pruett Jr, Managing Partner, The Boston Associates

  • "I think that ultimately live commerce will be just another channel mix in most brand and marketer distribution strategies." -Ronald C. Pruett Jr, Managing Partner, The Boston Associates

  • "Everyone tries to be the next HSN or QVC, but no one yet has been wildly successful." -Ronald C. Pruett Jr, Managing Partner, The Boston Associates

  • "Commerce for just commerce's sake is fairly bland. What has made QVC and others successful is that they know how to sell, but they do it in a very entertaining way." -Ronald C. Pruett Jr, Managing Partner, The Boston Associates

  • "The average American watches five hours of television a day. What's television? Well, it's Roku and Hulu." -Ronald C. Pruett Jr, Managing Partner, The Boston Associates

  • "I think Roku has nearly 70 million households now. So it's a huge base doing over 3 billion in revenue a year." -Ronald C. Pruett Jr, Managing Partner, The Boston Associates

About the speaker

Ronald C. Pruett, Jr.

The Boston Associates

- The Boston Associates

Ronald is the Managing Partner at The Boston Associates

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