Livestreaming and video content are transforming the online shopping experience, especially for Gen Z, providing MSMEs with dynamic opportunities to engage customers and drive sales. Shopee’s innovative features and robust ecosystem support businesses in thriving within the competitive digital marketplace.
22 July 2024 – The digital commerce landscape is evolving significantly, particularly in customer buying behavior among Gen Z. Interactivity has become a pivotal factor, reshaping customer experiences through livestreaming and shoppable videos, heralding a new era of dynamic shopping.
How has video transformed the online shopping experience, and does it present substantial business potential for today’s micro, small, and medium-sized enterprises (MSMEs)?
Kantar’s latest research, commissioned by Shopee and titled “The Future of Shopping: Engaging Generation Z Shoppers in the Digital Era,” reveals that nearly 70% of Gen Zs in Southeast Asia consider e-commerce platforms the starting point for their shopping journey, utilizing these platforms to research purchases, including watching product demonstration videos. Livestreams serve as an ideal touchpoint, allowing sellers to conduct in-depth walkthroughs of their products and answer buyer questions in real-time.
The study also indicates that eight out of ten respondents seek engaging and entertaining experiences while shopping, underscoring the critical role of video content in their purchasing decisions. This trend presents a prime opportunity for MSMEs to showcase their creativity, providing a more interactive shopping experience and strengthening customer relationships.
Sambal Success with Round-the-Clock Livestreaming
Syukor Majid, owner of Kedai Abang Syukor, began his business by selling pre-mixed beverages and other products through traditional channels. After moving online in 2015, he needed a strategy to expand his audience and boost sales for his newly launched sambal line in 2023. Recognizing the challenges of promoting perishable products, Syukor turned to livestreaming on Shopee, differentiating his brand creatively from competitors.
Syukor’s unique approach involved a revolutionary 24/7 live streaming strategy, providing constant customer availability akin to a pasar malam that stays open late. This continuous presence allowed him to engage with customers at any time, addressing questions and fostering a loyal community through humor and real-time interaction. The result was a captivating and memorable livestream experience that translated into commercial success.
“Embracing a 24/7 livestream strategy has allowed us to connect with customers anytime,” Syukor said. “With Shopee’s extensive reach and user-friendly interface, we’ve transformed our sambal line’s visibility and sales.”
Due to impressive sales and increased customer interest, Syukor expanded his team to include seven hosts to manage demand and continue delivering high-quality content. He became one of Shopee Live’s top sellers, logging an impressive 155 hours of airtime per week. Within the first three months on Shopee Live, he generated over RM 1 million in sales, achieving a 600% increase during Shopee’s double-digit sales campaigns through strategic discounts and Shopee Live vouchers.
Recently, Syukor sold over 60,000 packs of ready-to-eat dendeng during Hari Raya Aidilfitri, supported by his 300,000 loyal Shopee followers. Leveraging Shopee’s robust ecosystem, his products gained international exposure, reaching customers in neighboring countries like Singapore. Encouraged by these results, Syukor plans to open additional Shopee Live accounts to meet rising customer demands and explore ventures into non-food products.
Livestreaming Transformed Sleepwear to Everyday Fashion
Bella Hazaha, a fashion entrepreneur from Terengganu, aimed to break sleepwear stereotypes by creating cozy pajamas that seamlessly transition from bedroom wear to everyday fashion, while remaining trendy, modest, and affordable. However, static images made it difficult to reach her audience. “Gone are the days of niche social media advertising,” Bella said, needing a platform that could capture the essence of her brand through real-time interaction and product demonstration.
Livestreaming became Bella’s transformative tool. “Shopee Live allows me to connect directly with customers. Live sessions changed how customers experienced the brand, seeing pajamas transition into stylish outfits, asking questions in real-time, and enjoying a seamless checkout process,” she explained. Bella’s approach extended beyond product display, involving a team of eight hosts who became brand ambassadors, fostering genuine connections with viewers and ensuring a thriving sense of community.
Bella Hazaha Pyjamas quickly rose to become a top seller on Shopee Live, achieving over 1,000 daily sales. The brand’s digital success allowed Bella to open a physical office and warehouse to meet booming demand. Shopee Live served not only as a sales platform but also as a launchpad for Bella Hazaha’s innovative sleepwear, turning a bold idea into a thriving business.
Recently, Bella Hazaha Pyjamas began venturing into Shopee Video to promote her brand and increase visibility to her target audience. “It’s fun to upload videos,” she said, noting initial engagement results soon turned into conversions.
Small Electronic Store’s 900% Growth Journey with Livestreaming
In 2020, Lee Chin Sun launched Allblue5367, a store featuring cool electronics and gadgets. Starting small, with a studio apartment-sized warehouse and a few daily orders, Lee faced the challenge of standing out in the vast online world. Text descriptions alone weren’t enough, especially for the tech-savvy Gen Z crowd.
In 2023, Lee discovered Shopee’s built-in livestreaming feature. Lee’s live streams went beyond product demos, engaging viewers with interactive gadget demonstrations and on-the-spot answers to their questions. He even highlighted his top-notch after-sales service during the live sessions, a feature highly valued by viewers.
Lee’s dedication paid off significantly. His Shopee followers increased by 20%, and Allblue5367 won the “Shopee Super Seller Awards 2023: Super Electronic Livestream Seller” through public votes. Beyond the numbers, Lee captivated viewers with creative content, providing entertainment beyond shopping. He offered warehouse sneak peeks, team brainstorming sessions, and even live broadcasts during vacations.
By 2024, Allblue5367’s monthly sales had skyrocketed by 900% compared to 2020, reaching RM1 million. The warehouse also expanded to 33,000 square feet.
Building on the Shopee Live success, Lee plans to continue the shop’s e-commerce journey: “Our trust in Shopee’s sales channel and the phenomenal success of Shopee Live excites us to explore their new feature, Shopee Video. Live streams have been fantastic for real-time engagement, and Shopee Video will complement this by allowing us to create bite-sized, informative product videos that customers can discover at their convenience.”
Beyond Livestreaming – A Feature-Rich Ecosystem for MSMEs
“At Shopee, we understand that crafting the perfect online presence is crucial for MSMEs. Shopee Live and Shopee Video can help supercharge their e-commerce strategy, transforming their listings into dynamic experiences that build real connections and set their brands apart,” said Ming Kit Tan, Head of Marketing and Business Intelligence at Shopee Malaysia.
Kantar’s research also revealed that 68% of Gen Z respondents show a higher purchase completion rate on e-commerce platforms compared to other channels. The study noted that while shoppers conduct in-depth research for purchases, a seamless return and refund process, along with next-day delivery services, are top considerations for completing their transactions.
In response, Shopee has introduced new programs to enhance the shopping experience for Malaysians, such as Instant Delivery, Next Day Delivery, and the On-Time Guarantee, offering an RM5 voucher if an order arrives late. Additionally, Shopee’s 15-Day Free Returns policy allows users to return eligible items across all product categories within 15 days for a full refund, with no questions asked. Shopee’s best-in-class return and refund process can be completed within two days for payments via ShopeePay, significantly faster than the industry average of seven days.
These features make it easier for customers to make purchases without worrying about the hassle of returns and refunds or additional shipping expenses. Through these initiatives, Shopee supports businesses in building customer loyalty and achieving sustainable growth, empowering Malaysian MSMEs to succeed in the competitive digital marketplace.
“We’re not just here to assist sellers with livestreaming. We understand how impactful these tools can be, but more importantly, we’re here to offer comprehensive support to help these businesses flourish. Our strong ecosystem, with secure integrated payment systems and a network of logistics partners, ensures that,” Tan added.
