Shopee Live Turns Out to be the Most Frequently Used Platform for Fashion and Beauty Shopping!

Kapanlagi.com - The increasing internet penetration in Indonesia has driven the rapid growth of e-commerce. Based on the e-Conomy SEA 2020 report, Indonesia's e-commerce market is also projected to reach $53 billion in 2025, with a CAGR of 29% from 2020 to 2025.

To increase attractiveness and follow changes in shopping behavior, the strategies presented by e-commerce players have made the competition map of Indonesia's e-commerce industry more attractive in recent years. So, what are the results?

Successful E-Commerce Takes First Place

According to Snapcart Research: Online Shopping Behavior Trends Ahead of Ramadan 2023, it reveals the current condition of the e-commerce market. Based on two main indicators, namely Brand Use Most Often (BUMO) or the most frequently used brand and the most remembered brand or Top Of Mind (TOM), Shopee takes first place, far above other e-commerce brands.

Whereas for the most frequently used brand indicator, 61% of respondents chose Shopee, followed by Tokopedia (22%), TikTok Shop (9%), and Lazada (7%). Meanwhile, for the most remembered brand, Shopee excels at 70%, followed by Tokopedia (22%), Lazada (5%), and TikTok Shop (2%).

Initiatives to innovative features are often presented to improve the online shopping experience, both for consumers and the business development of industry players, one of which is live streaming.

Live Shopping is the Future of E-Commerce

The increasing popularity of live shopping or shopping and selling through live streaming features that continue to show great potential, makes this trend called the future of e-commerce. Not only as entertainment, real-time interaction becomes the main attraction and increases proactive engagement when shopping online.

To discuss this further, Populix launched the report "Understanding Live Streaming Shopping Ecosystem in Indonesia" which discusses user behavior and attitudes towards live streaming when interacting and shopping through live streaming to maximize strategies and learn about existing obstacles.

"Various attractive, creative content and proactive interaction become the advantages of the Live Shopping trend through streaming features. In addition, attractive promotions also increase people's purchasing power to shop in real-time," said Timothy Astandu, Co-Founder, and CEO of Populix.

Timothy added, "Business players also feel the positive impact, so to increase competitiveness and productivity, there are various aspects that they must learn to study consumer behavior movements when shopping online, especially through live streaming features."

"It is not surprising that most e-commerce players in Indonesia are developing this feature. So, we want to narrow down the trend itself, whether the platform position in the e-commerce market currently affects consumer preferences towards live streaming features presented by each player," he added.

Most Popular Live Streaming Platform

Based on a survey of 506 men and women aged 17-45 in May 2023, it revealed that 69% of respondents said Shopee Live is the most frequently used live streaming feature by the Indonesian people, far surpassing its competitors, namely TikTok Live (25%), Tokopedia Play (4%), and LazLive (2%).

Shopee Live also becomes the most remembered live streaming feature by the Indonesian people with a result of 60% of respondents, far surpassing TikTok Live (30%), LazLive (4%), and Tokopedia Play (2%).

Share of order is the average transaction per month for live shopping categories multiplied by the number of users in the last 6 months. Meanwhile, Share of revenue is the transaction value for the live shopping category multiplied by the average transaction per month for the live shopping category multiplied by the number of users in the last 6 months.

"This is in line with our research findings, where Shopee Live has the highest transaction market share and the highest transaction value market share compared to its competitors," said Timothy Astandu.

Here's How Consumers Shop During Live Streaming

Like other shopping activities influenced by the journey stages, live shopping has underlying factors that affect consumer preferences while shopping.Two of the many important elements are attractive offers that include free shipping, discounts, and special promotions, as well as comprehensive categories and a wide range of products.

Live Shopping with the Most Complete Categories

Comprehensive categories are an important factor that consumers consider when doing live shopping.The advantage of live shopping that can see and ask directly through video influences consumer decisions when shopping for certain categories.

In this research, it is seen that the most purchased product categories are fashion and accessories (85%); beauty, care & health (54%), lifestyle (41%), household needs (33%), daily products/FMCG (32%), electronics (25%), and mother and child/baby needs (16%).

The survey results also revealed that in a month, people can shop two to four times with a budget of around Rp 200,000 per transaction.

Fashion and Beauty are the two categories with the highest percentage among other categories, which are most purchased during live shopping.Both of these categories show a fast turnover trend, one of which is through variations in the presented product models.

It cannot be denied that this also goes hand in hand with the opportunities created by technological advances. Where currently, creative content that includes reviews, hauls, and product recommendations can be found anywhere, one of which is through the live streaming feature. These contents tend to be more prevalent in these two categories.

Shopee Live is the most frequently used live streaming feature for buying Fashion & Beauty products. For the Fashion category, Shopee Live is used by 79% of respondents, far above its closest competitor, TikTok Live (44%). For the Beauty category, Shopee Live is used by 71%, far above its closest competitor, TikTok Live (51%).

The distribution of consumer preferences when choosing a streaming feature for live shopping for each category is as follows.

In researching the streaming features for live shopping activities, this study used 3 elements to explore the completeness of the category factors. In addition to a complete category collection, a varied product selection also plays a special role in meeting the different preferences of consumers.

In this survey, Shopee Live occupies the top position where 74% of respondents choose it as the live streaming feature that offers the most complete and varied range of products, far above its competitors, namely TikTok Live (20%), Tokopedia Play (10%), and LazLive (9%).

Timothy Astandu said, "Occupying the top position for a brand is certainly not only the success of one factor. In addition to consistently present campaigns, other initiatives such as collaborations with brands or businesses that are in line with the campaign theme and the selection of public figures who can support the topic can be pillars to create effective and efficient strategies."

Live Shopping Offering the Most Attractive Offers

Other considerations revolve around attractive offers, where this element continues to be the main attraction for shopping in any way, whether offline, online, or live shopping. This is because most shopping characteristics and styles still refer to finding promotions or attractive offers.

The most attractive promotions according to the public are free shipping (91%), discounts (87%), cashback (65%), shopping vouchers (47%), special bundles (34%), and exclusive product launches (20%). The distribution of preferences for attractive offers for each player includes:

From the above research data, it can be concluded that Shopee Live is the live streaming feature with the cheapest price, the most promotions and free shipping, and the live streaming feature that offers the largest discounts and cashback. This is in line with the data that shows that Shopee Live occupies the first position in the most preferred brand/live streaming feature indicator, far above its competitors, where Shopee Live (66%), TikTok Live (28%), Tokopedia Play (3%), and LazLive (3%).

This needs to be taken into account by all e-commerce platforms that offer live streaming features to provide services and benefits to the public so that this shopping trend can become a new habit and add shopping channel options for the public.

However, seeing the new live shopping trend that has just entered the early stages of development and the great potential that still needs to be offered in the future makes this competition map even more interesting to watch. Will its position change? Let's wait for the next report!

(kly/tmi)