.svg "ShopConnect"){kind=small}
Over the past few years, video has become a powerful medium for influencing people across industries. By 2022, video viewing is expected to account for 82% of all internet traffic. Being an easy-to-consume medium, it has outpaced other forms of marketing with a much better return on investment of about 75% than static imagery. As a result, over 60% marketers see video as a core part of their marketing strategy.
With trends like live video calling and video appointment booking, video commerce is fast becoming a central part of the e-commerce growth story. The global e-commerce market is expected to grow at a CAGR of 14.7% from 2020 to 2027 driven by immersive customer experiences, increasing use of smartphones, and the convenience factor.
The need for immersive customer experiences coupled with restrictions imposed by the pandemic has further accelerated the growth and demand for video commerce. Research indicates that video has over 70% effectiveness in selling a product as it dispels consumer concerns about the product. As they say, “Seeing is believing” and video commerce is a strong proponent of this behavioral trend.
E-Commerce Growth in India in 2020
A recent NASSCOM Insights report says that the Indian e-commerce market grew 20% and makes up less than 5% of the overall Indian retail market. With the second-largest internet user base in the world, Indian e-commerce market has a strong growth potential. The pandemic might well be a turning point in the Indian e-commerce story and superior user experience is expected to play a crucial role in further growth.
Post Pandemic Direct to Consumer E-Commerce Growth
The e-commerce sector was growing steadily before the pandemic, but it has accelerated the shift to e-commerce. Traditional wholesalers and retailers have realized the importance of selling directly to consumers (D2C) as there has been an exponential rise in the number of new online shoppers. Brands are focusing on developing a community for their customers to forge stronger relationships. The number of consumers shopping directly from websites has grown 88% versus 32% growth on marketplaces. Beauty and Wellness, Fashion and Accessories, and FMCG and Agricultural segments are the top segments for an increasing number of D2C brands. The share of D2C platforms in overall e-commerce is expected to grow significantly in the next few years
Indian E-Commerce Growth Segments
According to NASSCOM report, Fashion and Accessories segment is the most popular segment for online shopping with the highest share of order volume. The Beauty and Wellness segment witnessed a 130% growth in order volume followed by the FMCG, Eyewear, and Health and Pharma segments. Health and Pharma and FMCG and agriculture segments have witnessed exponential growth due to a large number of first-time online users. Electronics segment is the largest segment in terms of GMV.
Rising demand from Tier-3 Cities
Expanding beyond metro cities has been a rising trend over the past few years. This year, Tier-3 cities were the fastest growing regions with over 53% growth. Tier-2 cities account for 67% of total online demand and are expected to increase their share in 2021.
Declining Number of Return Orders with Engaging Tech
Return management is critical to the profitability of an e-commerce business and technologies like 3D models and live video shopping have helped reduce the number of returns. Personalised one-on-one or one-to-many interactions over live video can help in significantly reducing the number of returns. Returns percentage has declined 13% and constitutes 17% of the overall order volume compared to 20% in 2019.
Innovative Trends in a New Era of Engagement
The COVID pandemic has changed every facet of life. Human and personal interactions have regained the importance they deserve, especially in selling. Retailers and brands have realized the importance of personalized engagement. The era of automation is perhaps over. This is the new era of engagement - of humans with humans.
In response to the COVID pandemic restrictions, shopping establishments and brands had to reinvent and accelerate their digital transformation and the way they engage with customers. It is not just enough to have a web presence and e-commerce functionality. Brands now need a way for customers to reach out to salespeople just as they would in a store. They need to understand what the customer needs and there is no software that can replace its experienced salespeople.
So how can you bridge this gap? Virtual shopping tools and platforms can come to your aid. Here are some innovative trends to engage better with customers.
Live Video Selling
With just a click on the website, shoppers can get into a video call with experienced sales staff who can make the shopper feel valued and convert them into loyal customers. They can personalize the shopping experience and offer valuable suggestions just like they would in a store. These tools can link a video call with the inventory to help make the optimum selection and convert the call into a sale.
Sharable Interactive Shopping Links
Salespersons can send shopping suggestions as interactive shoppable links that include 3D models of products or shoppable looks. Shoppers from any part of the country can now shop from any shop they fancy from the comfort of their homes.
Video Appointment Booking
Some platforms allow shoppers to book video appointments with stylists, salespersons, or professionals from any field. Brands and retailers can hold virtual shopping events with the One-to-Many Video call feature. They can offer expert tips and product recommendations that go a long way in building a brand.
Dark Stores
Some platforms allow shoppers to book video appointments with stylists, salespersons, or professionals from any field. Brands and retailers can hold virtual shopping events with the One-to-Many Video call feature. They can offer expert tips and product recommendations that go a long way in building a brand.
Benefits of Virtual Shopping for Retailers
As per the 2020 Gartner Consumer Behaviors and Attitudes Survey, 64% of consumers feel they are at risk of exposure in public places. It has therefore become imperative for brands and retailers to strengthen their online presence and support consumers’ self-protective instincts.
1. Utilize Sales Power
The main USP of retailers over pure e-commerce has been the personalized service and guidance from their sales staff in their stores. Virtual shopping with video e-commerce extends this USP over online channels as well. Consumers can interact with the sales staff much like they would in a store. Sales staff can show them products in real time and guide them in their buying decisions.
So, even if stores are receiving less footfalls due to the pandemic, retailers can utilize their sales staff and increase their efficiency. They can respond to consumers, guide them about new trends and products, and persuade them to buy products. They can thus avoid the cart abandonment issues that plague traditional e-commerce stores.
The persuasive power of your sales staff will not just help increase conversions and sales but also build lasting bonds.
2. Bridge the Digital Divide
The pandemic has forced even smaller retailers to quickly adopt online sales channels. Several e-commerce platforms have helped bridge the digital divide by providing quick turnaround times to deploy virtual shopping. They offer white labeling and customizing solutions to help retailers leverage their brand experience and cater to local trends and demands.
These platforms provide comprehensive suites of services that help retailers start their online sales channel without any hassles. Safe and secure payment solutions and inventory management ensure streamlined operations that benefit retailers during the pandemic and beyond.
3. Convenient and Easy
When you have the option of a complete holistic experience of being able to watch the complete details of the product and interact with the salesperson on the video, why will you step out and waste money, time and energy on offline shopping? Shopping at retail stores from the comfort of a home via video is the best thing that has happened to a shopper as well as the stores. This makes for a recurring customer who might not shop everyday but who might step in just to view the products and make a wish list. With video shopping options, you always have a potential customer lurking around.
4. Wider customer outreach
With online video shopping options, the brand can reach to every nook and corner of the world. This is the way a simple, local brand can become global in minutes. The most authentic, personalized experience of shopping within a comfortable space from a completely different place in the world was unheard of a few years ago.
5. Diversification
Virtual shopping is an innovative way to increase your sources of revenue and customer touchpoints. It acts as a way to test the waters before venturing head on into a new market. You can opt to follow up with a physical presence in different geographies only when you receive overwhelming response.
Overcoming the Complications of Video Making
Live video calling is an innovative trend of video e-commerce that not only offers you the benefits of video in e-commerce but also makes it quick and simple to implement. It does away with the technicalities involved in deciding which products to shoot the video for and hiring shooting equipment and professionals. It lets the customer decide which product he wants a video of.
- 66% of marketers don’t make videos because they think it’s too time-consuming.
- 41% of marketers don’t make videos because they think it’s too complicated.
- 37% of marketers don’t make videos because they think it’s too expensive
Video is a powerful medium to sell as it lends to the authenticity of the product and the brand. It helps in gaining the trust of the customers, establishing relationships, and increasing brand loyalty. No wonder it is becoming the top e-commerce trend!
