When we think about liveshopping, it’s easy to picture Gen Z enthusiasts as an audience glued to their screens, snagging deals left and right. While this demographic is indeed active and engaged, they aren’t the most profitable audience for live shopping. Here’s why.
Chapter 01The Gen Z Conundrum
Gen Z’s enthusiasm for live shopping platforms like TikTok and Flip is undeniable. On June 27th, TikTok recorded an average order value (AOV) of just $29, primarily driven by heavily discounted products, according to Kalodata. Internal sources also indicate that Flip’s AOV hovers in the low tens. Despite their high engagement, Gen Z’s limited spending power translates to lower profitability for live shopping ventures.
Chapter 02The Lucrative Middle-Aged Demographic audience for liveshopping
Surprisingly, the most profitable age range for liveshopping isn’t the youth. It’s adults aged 35-54. This demographic not only engages more, but also spends more during live shopping events, contradicting the common belief that younger generations dominate this space.
Chapter 03Data Insights
According to a study by Coresight Research, Facebook is continuing to be the most popular live shopping platform in 2022, with 55% of businesses utilizing it for their live commerce needs. Moreover, users over 46 years old were the most likely to make purchases during live shopping events, highlighting the profitability of the 35-54 age range over even older consumers.
Chapter 04Viewing vs. Purchasing
Millennials (ages 25-40) may stream the most live content, with 63% of this group watching live streams, but this group doesn’t lead to as high conversion rate as older groups. The 35-54 age group, on the other hand, translates their viewership into significant buying power, making them the prime target for live shopping shows.
Chapter 05Beyond Buying Power
There are additional reasons why the 35-54 age range is more profitable for live shopping:
- Familiarity with Video Shopping: Older demographics are accustomed to shopping via video, thanks to TV shopping networks like QVC and HSN. Baby Boomers, for example, form the largest audience segment for these networks. This familiarity with video shopping formats makes them more comfortable and willing to spend during live shopping events.
- Available Time: This age group tends to have more available time to watch live shopping shows. They often watch these shows in the background while multitasking on other devices, unlike Gen Z, who are more deeply engaged but less likely to convert that engagement into purchases.
While it might seem counterintuitive, the true audience for liveshopping isn’t Gen Z but rather adults aged 35-54. Their higher spending power, familiarity with video shopping formats, and available time make them the most lucrative demographic for this retail format. As the live shopping landscape continues to evolve, focusing on this hidden powerhouse demographic could be the key to unlocking greater profitability.
Chapter 06What is LiveShopping?
Live shopping gives consumers the opportunity to purchase as they watch video streams. With social commerce, retailers can broadcast live video streams and engage with consumers in real time. eStreamly’s video commerce solution enables brands to host live shopping events across multiple channels. From shoppable live shows on social media to hosting video commerce events. Live shopping is the future of retail. Live streaming shopping apps are the tools successful retail brands will need. eStreamly’s white label solution gives brands shoppable videos. As live streaming shopping gains momentum eStreamly is empowering retailers to leverage these Live streaming shopping apps and shoppable videos to drive higher conversion rates. Connect with today’s mobile first consumers.
