Fashion Retailer Drop the Walls and Others Livestream Their Way to Profits

Drop the Walls is proving that what was once old is new again as the U.S.-based fashion retailer revealed to have crossed over $25 million in sales from livestreaming alone.

Last month, PYMNTS discussed how the concept of live, televised shopping was initially pioneered by HSN and QVC, allowing customers to witness product demonstrations and make purchases in real time. Although traditionally popular with consumers between 35 and 64 years old, the idea has gained traction among a younger audience, particularly during the pandemic. Social media platforms such as Instagram and TikTok have introduced their own livestream shopping solutions, contributing to this shift in popularity.

$25 Million in Livestream Sales Significant

The $25 million in sales is notable as Instagram in March terminated Live Shopping, a feature that allowed creators to tag products and promote links during live broadcasts. This decision came after Facebook’s announcement in August to terminate its interactive shopping experiment.

Hundreds of thousands of brands and agencies were dealt a severe setback by the discontinuation of Live Shopping, which was a crucial marketing tool for promoting products. The feature was used by thousands of brands and creators after its launch in 2020. Although creators can still use Instagram to livestream, they can no longer seamlessly include product links during their broadcasts. As a result, many creators have opted to migrate to other platforms.

The potential ban of TikTok has also left many to wonder if they need to find alternative solutions to reach consumers.

U.S. merchants are more interested in expanding their brick-and-mortar operations and concerned that the government could ban TikTok, and with it, the platform’s burgeoning TikTok Shop feature, The Information reported.

Opportunity for Other Livestream Services

Meta’s decision to end its livestreaming service and the potential ban of TikTok has created new opportunities for others. Additionally, it highlights the importance of developing your own solution rather than relying on someone else.

Drop the Walls was able to see such traction in live selling thanks to CommentSold, a commercial live-selling platform that provides live-selling tools to over 7,000 small- to medium-sized retailers, resulting in the sale of over 147 million items and $3.5 billion in lifetime gross merchandise value (GMV), according to a press release.

But CommentSold isn’t the only provider to SMBs. Poshmark also gives brands and retailers the chance to participate in livestream shopping by offering its own platform for sellers and buyers.

Walmart has partnered with TalkShopLive, a platform for streaming, social buying and selling, to implement a live shopping content strategy. Using its established infrastructure, Walmart has conducted live back-to-school (BTS) fashion events and streamed content about college moving checklists and dorm life.

Amazon has also embraced livestream shopping as a marketing tactic by showcasing a variety of interactive videos from brands and influencers on its website throughout the day, similar to QVC-style programming.

How Livestreaming Meets Consumer Demands

Livestreaming has become a popular and effective marketing tactic for small businesses and mid-sized brands and retailers. One of the key benefits of livestreaming is that it offers an engaging and personalized shopping experience, which is highly attractive to consumers.

Through livestreaming, businesses can showcase their products in real time and provide customers with a detailed and authentic look at their features and benefits. This creates a sense of urgency and exclusivity, which can increase customer engagement and ultimately drive sales. Moreover, livestreaming enables businesses to interact with their customers directly, creating a sense of community and creating an opportunity to answer their questions and provide personalized recommendations, content promotions and discounts, which can lead to customer loyalty and repeat purchases.

Additionally, livestreaming is a cost-effective way for businesses to market their products and services, as it does not require large budgets for advertising or production.

Jeaneane Pennell, who founded Drop the Walls in 2016 to empower women by offering trending and elevated basics that help them feel confident and embrace their individuality, said in the press release that live selling has allowed her to deliver customized and captivating shopping experiences, which has ultimately resulted in a devoted customer base.

According to Coresight Research, almost one-third of U.S. consumers have watched a shoppable livestream, with 52% of U.S. livestream viewers making purchases. And, according to Capterra,  over 50% of small businesses that have used TikTok have reported a notable enhancement in their overall marketing performance, with 78% noting a favorable return on investment (ROI) from their TikTok advertisements. Furthermore, more than half of these brands have reached a positive ROI within six months after implementing their TikTok advertising strategies.

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