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Once only a fad in China, “live commerce” becomes trendy in Brazil

RIO DE JANEIRO, BRAZIL – In the fashion world, “live commerce,” selling products in which people can ask questions and make the purchase online in real time, is nothing new. But with the Covid-19 pandemic, this shopping world “reality show” has spread its tentacles to related markets and also to some very different ones.

‘Live commerce’ becomes trendy in Brazil. (Photo internet reproduction)

Currently, live commerce is popular in cosmetics, home decor and even cars.

The model has been imported from China, the cradle of live commerce, where it generated about US$200 billion in business in 2020. Research and Markets estimates that the global “social e-commerce” industry will reach US$600 billion by 2027.

The Mimo platform emerged in the midst of social isolation. The concept, according to CEO Monique Lima, matured when she became aware of her sister’s challenges as owner of a shoe store.

“With no media at all, we had 300 people in the first livestream and 600 in the second, with great engagement,” says the ex-advertising executive who founded the company with Etienne Du Jardin. Through friends, they secured an investment round. Among its sponsors is also advertising executive Nizan Guanaes.

In just a few months, the platform attracted brands such as Ri Happy and Dolce & Gabbana. It is currently negotiating a livestream for a car brand. “We believe it is possible to sell everything live,” says Monique. According to her, consumers now value product delivery at home. In addition, they want a personal relationship, and livestreams provide the solution to this.

French brand Givenchy is another that has surrendered to “shopstreaming” in Brazil. The first digital sales venture occurred earlier this year, when it used a launch and made a livestream with a makeup artist to showcase its products.

According to the director of Givenchy in Brazil, Marjorie Pilli, the goal was to show skin care and makeup products, something more visible to be followed by video, but the livestream ended with the display of the brand’s flagship perfume. “It was the way we found to delight consumers.” The initiative, made alongside the e-commerce Época Cosmeticos, of Magazine Luiza, led the brand to think about having an e-commerce business in Brazil.

Dermage, a dermocosmetics company, made the pre-sale of one of its launches over a livestream in May and granted benefits to customers, such as free shipping. The company has recruited experts in skin care and an influencer – it had 3,000 accesses in an hour. According to marketing coordinator Jéssica Lopes, online sales doubled that day. “We see this as an opportunity for launches and for important sales dates.”

Fashion designer Martha Medeiros says she felt “inside the client’s house, interacting with her.” According to Martha, the return was better than expected, especially with the sale of household items such as glasses and American games. The next step will be to conduct a livestream directly with lace makers – thereby removing the intermediary, in a joint action with communities and associations.

Alberto Serrentino, founder of consultancy Varese Retail, says that the phenomenon has exploded in the pandemic worldwide, with the new way of shopping created by giant Alibaba. “They are the ones who developed this way of integrating content, media, entertainment and purchase.” He explains that the difference of home shopping channels, such as Shoptime, “is interactivity and the way in which the dynamics of the event are influenced by consumers.”

Grupo Soma, owner of brands like Animale and Farm, launched its live commerce a year ago, when its stores were closed. Since then it has conducted around 50 livestreams. The group was able to abandon the QR-Code, traditional in this type of sale, replacing it by allowing customers to drag the products seen in livestreams to the shopping cart and complete their purchase.

Alisson Calgaroto, Soma’s technology director, says that the technology combines a number of complexities that must be equalized in order for the product to be satisfactory. It also joins areas outside e-commerce itself, such as communication and marketing: after all, being live for hours requires a good script to prevent customers from getting bored and stop watching and buying.

Source: CNN Brasil

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