Legacy Luxury Brands Should Embrace the Livestream Shopping Model
You don’t have to read the tea leaves, heck you don’t even need to own any tea leaves, to know that the livestream shopping model is poised to explode in the coming years.
Consider a report published a year ago by Coresight Research, which predicted livestreaming could account for $25 billion in sales by 2023.
Piggybacking to that is research from Facebook, which says 55% of Gen Zers and 62% of millennials said they would be open to buying items directly from livestreams.
And if you need reminding, millennials are the largest generation group, according to Statista.com. Buying power of more than 72 million people, more than the Baby Boomer generation.
An opportunity for expensive brands to “get on the radar” of younger consumers?
I’m looking at the Hermes website. I can pick up a stocking cap for $500 and a pair of gloves for $970. What a bargain!
At this moment the products sold by the French legacy luxury goods company are out of the reach of most millennials and Gen Zers. However, the brand ostensibly wants these massive generations to have brand awareness of Hermes.
To do that, here is the strategy I propose:
· A line of less-expensive Hermes products aimed at younger shoppers.
· These products should be sold exclusively online, specifically through livestream events.
· To keep excitement and demand for these products high, Hermes should hold these events sparingly.
· Appropriate influencers should definitely be part of this campaign. By wearing items from this special line, and selling them as well. Again, in a sparing fashion.
Hermes might fear introducing less expensive clothing to the market might cheapen their brand. I believe a fine line can be walked. If they purposely control the supply of these products and aim to make them “cult” items, they will make themselves trend, and get firmly on the radars of younger consumers, who hopefully one day will be purchasing from the mainstream selection of Hermes products.
The brand does sell a very limited number of items on its Instagram store. On other major platforms it just links to its website. What I’m proposing, however, would be a significant amplification to hit a wider selection of consumers.
Asia, a major market for Hermes, is already hopping on the livestream retail model. I lead you to this fascinating write from Forbes, which reports that in 2019 roughly 37% of online shoppers made a purchase over livestream. In the era of COVID, it’s a safe assumption that figure has only grown higher.
The piece also found that while millennials and Gen Zers drove a lot of these sales, older Chinese opened up their wallets as well.
Turn things up a notch
I believe Hermes should also experiment with virtual reality as part of this campaign. The brand should consider putting on virtual fashion shows. Looking at the colorful videos the luxury retailer posts on its social media, I do not believe this would be a stretch for them.
Right now things are good for Hermes. There was a host of positive news when they announced their Q3 results, including that they made a profit of $7.5 billlion, up 57% year-over-year. The time is here for them to put their foot on the gas and accelerate towards a new trend.