Live commerce goes from an afterthought to a big business

A screen capture from livestreaming broadcast to sell artworks from painter Lauren Jung hosted by domestic fashion retailer LF [LF]

Companies are using live streaming commercial broadcasts — live commerce — to communicate and win over younger consumers.

The live commerce market will grow to 10 trillion won ($7.6 billion) this year, up from 2020’s 3 trillion won and 2022’s 6 trillion won, according to Korea Internet & Security Agency.

Among younger people, live commerce is a new service to connect with brands in fashion, beauty, food and household products.

For instance, domestic fashion retailer LF marketed artwork by having the painter herself promote her works in a livestreamed broadcast on March 14. The artist, Lauren Jung, appeared with the show host to discuss her works held at her studio. The overall response has been positive, with viewers leaving comments such as “I feel like I’m in the gallery,” or “I feel like I’m having face-to-face talk with the artist.”

The livestream gathered 15,000 likes on its app.

The retailer rolled out “Orange From Mars” (OFM) in February. It focuses on selling products in art, fashion and well-being lifestyles.

Before Lauren Jung, a livestream in which painter Gahyo Choe appeared gained traction as she drew during the broadcast.

“What OFM aims for is ‘fandom content,’ which focuses on showcasing artworks which can hit a jackpot with distinctive tastes,” said an LF spokesperson.

Hyundai Department Store’s Hmall e-commerce platform rebranded as a live commerce brand to suit the tastes of its younger consumers and formed a corner that sells products that are hard to come by but are popular among those in their 20s and 30s. For instance, limited sales in a key ring from Petit Elin, which sells baby and children’s goods, was sold out in five minutes since via livestream in January.

CJ OnStyle fronted singer and entertainer Brian as a seller to host his commerce show on furniture, household products, interior services and hotel vouchers since March 2022. The show, which has run for 70 episodes, on average creates sales over 200 million won and has accumulated sales of 15.7 billion won.

“The sales for the broadcast for Galaxy Book 3 Pro 360, streamed on March 7, sold 1.7 billion won for that day alone,” a CJ OnStyle spokesperson said. “The sales made from mobile live commerce was equivalent to the sales from online shopping broadcasted in television nationwide.”

Companies are also set on training hosts to be active on live commerce broadcasts.

LG Household & Health Care started a training program this year in which 35 hopefuls were cast out of 244 applicants, some being housewives, stage actors and news anchors.

“I could have never afforded to receive training before because I was raising two children,” a 38-year-old trainee said. “I have been given a new opportunity to grow.”

BY BAEK IL-HYUN [lee.jaelim@joongang.co.kr]