It is predicted that e-commerce will grow rapidly as the impact of the Corona 19 pandemic continues next year. With online shopping becoming a common consumption method, the growth of live streaming and social commerce is expected to accelerate.
This was revealed in the “Preview of 2021 US Consumer Market Trends” published by the Los Angeles Trade Office of KOTRA.
Pay attention to live streaming and social commerce
In the United States, online shopping has spread rapidly due to the pandemic. Online shopping has taken root in the US consumer market, providing safety and convenience to consumers who do not want to go out.
During Thanksgiving and Black Friday last month, US e-commerce sales hit a record high.
On the other hand, when using e-commerce, the fact that it is difficult to know the actual size, color, and texture of the product was pointed out as a disadvantage.
“Live-streaming” or “streaming commerce” came to mind as an alternative to this. This is a sales method that shows consumers how a company or brand introduces and uses a product in real time through a celebrity or influencer.
The National Retail Federation (NRF) believes that this live streaming market will continue to grow. In particular, sales through live streaming are expected to more than double in 2021 from this year.
“Amazon Live” is the most notable live streaming in the United States. Amazon, a leading e-commerce player, opens live broadcasts with influencers and introduces products and usage. It is popular because viewers can conveniently purchase products with one click. Another feature is that free communication is possible, such as delivering real-time questions and opinions using a chat window.
Estee Lauder has held more than 1 million “virtual try-on” sessions that allow consumers to virtually test their products.
In the pandemic era, many beauty brands are using live streaming to virtually communicate with consumers.
‘Social Commerce’, which has actively expanded its territory prior to live to stream, is also a movement to gain greater influence.
Social commerce directly connects shopping with social media platforms such as Facebook, Instagram, YouTube, and TikTok. Not only Z generation consumers who are accustomed to digital communication but also those who practice social distancing were well received. The National Retail Association analyzed that social commerce will grow at an annual average of 31% by 2024.
Introduction of subscription and installment… Diversification of order and payment methods
In the U.S. consumer market, the traditional payment method of immediately paying for a product at a time is disappearing. A “subscription” purchase/payment method or a “pay-over-time” form is popular among young American consumers.
‘Buy now – Pay later’ or ‘Pay-over-time’ is a new trend that has stood out from this year. It is a payment method based on the concept of installment that is difficult to find in the United States. It is expected to attract attention next year as it has been recognized for its effect of boosting consumption desire and increasing sales.
Accelerating “digital transformation” of the consumer market
2020, when the Corona 19 frenzy struck, promoted changes in the way of supply, distribution, sales, and consumption. At the heart of this is digital transformation.
It is important to improve the consumer experience by connecting online, offline stores, and social media seamlessly and digitally. Digital transformation will be the key to the success or failure of a company.