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Live Commerce : A brief Understanding (A Myntra's Gamble)



The Synopsis

Is it possible that the ease of shopping for garments online will persuade Indians to abandon the "try-before-you-buy" mentality?

That was the wager made by Myntra in 2011. It has just shifted its focus from customised gifts to fashion. And it was successful. Myntra became India's top online fashion platform in only a few years.

Flipkart came knocking in 2013. It wants to expand its fashion portfolio, so it bought Myntra. Myntra, on the other hand, continued to iterate. It transitioned from an inventory-led approach, in which they purchased garments from manufacturers before reselling it, to a marketplace one, in which over 3000 businesses could utilise the Myntra platform to present their offerings to buyers. It collaborated with Bollywood stars such as Hrithik Roshan to promote unique products (HRX). Mast & Harbour are two of its own private label brands. To further build its Bollywood cred, it teamed with superstars such as Deepika Padukone (All About You) and Saif Ali Khan (House of Pataudi).

As you can see, Myntra is always improving its game. And it's seeking to shake things up again with a new concept — influencer-led live commerce — that's the foundation of today's discussion.

Live commerce is the shiny new thing that everyone is talking about these days. Assume you're on YouTube or Instagram, watching your favourite influencer. You're marvelling at their stunning gown and can't seem to take your gaze away from it. You want to purchase it right now, but the hassle of searching for it on Google puts you off completely. It's a hassle, so you drop the notion entirely. This, however, does not have to be the case. You'd purchase anything straight away if the influencer could simply show you the merchandise and lead you to a payment method. And if you don't trust the power these influencers have, consider the following statistic. According to Statista, 33% of Indians have purchased a product after hearing about it from an influencer.

Alibaba, the Chinese e-commerce titan, had the brilliant notion of bringing influencers closer to their audience in 2017. Taobao Live was created to connect live feeds with e-commerce.

On the live broadcast, influencers started nagging viewers to buy things, and it was an immediate smash. Conversions began to skyrocket. Before live commerce, influencers would direct their followers to a particular website to complete the transaction. Most individuals, obviously, would not want to leave the website. Those that did, though, often gave up in the middle. Cart abandonment is the term used by industry insiders to describe this issue. They'd put something in the cart and then decide not to purchase it. Cart abandonment is as high as 90% in the online fashion sector. Industry stakeholders started attacking this challenge in a significant manner with live commerce and influencers urging you to make that purchase (coupled with further discounts). In fact, over 70% of Chinese customers stated they have bought anything on a live broadcast by 2020, and now the rest of the globe is taking note.

Flipkart, Myntra's parent firm, has joined in the fun. It just teamed up with Moj, a short video platform, to enable live commerce. So, if you're watching an influencer on Moj, you can now purchase tagged items on Flipkart's site with a single click.

Myntra, on the other hand, will not be left behind. Influencers and other professionals may host live sessions on the site right now as part of a test. The objective is that by holding these information sessions, they would be able to generate transactions, i.e. if these influencers promote things on the live broadcast and can purchase them right then, it will be a win-win situation for everyone involved. In essence, this is the strategy Myntra is going to use in the months ahead, and live commerce may no longer be a foreign concept to the majority of Indians.

(Source: Finshots)

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