{"id":512,"date":"2023-02-14T08:21:00","date_gmt":"2023-02-14T08:21:00","guid":{"rendered":"https:\/\/stickler.live\/?p=512"},"modified":"2023-11-29T06:50:15","modified_gmt":"2023-11-29T06:50:15","slug":"selalu-dimulai-dengan-konsumen","status":"publish","type":"post","link":"https:\/\/stickler.live\/id\/2023\/02\/14\/it-always-starts-with-consumers\/","title":{"rendered":"Selalu dimulai dengan konsumen..."},"content":{"rendered":"
9\u201313 minutes<\/div>\n\n\n


[Extract: “By our estimations, Live Commerce on TikTok in South East Asia (Indonesia, Malaysia, Vietnam, Thailand, the Philippines and Singapore) will pass $1bn in GMV a month by the middle of 2023, this is at a ‘per-month’ growth rate that hasn’t been seen in any e-commerce platform since the early 2000’s.<\/em><\/strong><\/p>\n\n\n\n

We believe that TikTok Live Commerce will be at a $100bn GMV run rate by the end of 2023 in those markets.”]<\/em><\/strong>
<\/p>\n\n\n\n

The Metaverse conversation is moving on, it exploded on the scene, but it has been in a steady decline over the last year, apart from a slight bump when there was a need to explain a deluded strategy and its resultant redundancies.<\/p>\n\n\n\n

People have stopped talking about the metaverse. It was never really a thing beyond a dreamt-up nirvana that seemed to lack any form of utility. It was an idea briefly, and now it will fade away, and the investments people made in “the new time square” or a “house next to Snoop Dog” will fade away. Chalked up to hubris and youthful exuberance of the heady days of 2021 and 2022 when we were locked down and it seemed like it made sense.<\/p>\n\n\n\n

The acceleration away from the car crash that was the Metaverse is only highlighted further by the growth of the conversations about Generative AI, which has made the leap from a work of fiction into a utility in record time. Something that the Metaverse and Junk NFTs can only dream of.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Avatars across Second Life Collectively roll their eyes at the news that people don’t want to live in a virtual world. I mean they’ve had legs for years\u2026<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Why did the Metaverse not pan out the way Zuckerberg has bet his company on?<\/strong><\/h3>\n\n\n\n

Consumers. It’s that simple and yet too wildly complicated to surpass the FOMO that drove billions of dollars of wasted investment in trying to be the next Apple or Facebook (the owner of the next paradigm-shifting platform).<\/p>\n\n\n\n

Technology that is born out of the Valley, for the Valley, with technology that is affordable for people in the Valley, and use cases that make sense (or are acceptable) only in the Valley don’t work everywhere else. Google Glass anyone? Free grocery (or everything) delivery in 90 seconds that you don’t pay for?<\/p>\n\n\n\n

They’ll go the way of the Domino’s pizza outlet in World of Warcraft, and real estate in Second Life (which has held up comparatively well compared to Decentraland, or as one breathless bro told me “it’s like buying real estate in Time Sq, you know, before it was Time Sq.”<\/p>\n\n\n\n

Don’t get me wrong, some of the business models born from the ecosystem that is the wider San Francisco area are truly transformative and game-changing, like Airbnb and Uber. Mostly, those that involve hardware chicanery, are not.
<\/p>\n\n\n\n

Supply and Demand – Live Commerce is about to Change 2023 and beyond\u2026<\/strong>
<\/h3>\n\n\n\n

The truly game-changing shifts of the digital age have a common theme. They have built an audience (supply) before they built out the demand. This has tended to be in the form of building a huge audience before they go after the advertisers\/monetisation.<\/p>\n\n\n\n

This has led to an all-familiar commentary, where the consensus from advertisers is \u201cit\u2019ll never work\u201d or \u201cwhy would we be there?\u201d – before the uncomfortable realisation that, as a brand, a marketer or any business that wants to interact with or gain customers, you have to, as the saying goes, fish where the fish are.<\/p>\n\n\n\n

I\u2019ve worked a career where I have mostly been selling the next big thing, the up-and-coming trend, the unproven channel. The nascent technology. The opportunity.
<\/p>\n\n\n\n

What seems like a million years ago I went through the dotcom boom, asking retailers to fax me lists of their inventory so we could sell it online. Trying to source products for the ever-growing number of consumers who were starting to buy.
<\/p>\n\n\n\n

Then there was digital advertising. First the banners and the buttons, the homepage takeovers and pop-ups, pop-unders and anything else we could sell to get the ever-increasing attention that consumers were starting to give to websites, redirected to those advertisers brave enough to dip their toe.
<\/p>\n\n\n\n

This was back in the day of portals, how most consumers connected to services back in the day, from email through to the news; portals were the access point to the internet and its tools, and as that access point they garnered more attention than anywhere else, and so the advertising dollars flowed. A lot of clients, agencies and industry big-wigs weren\u2019t convinced by digital at this point. There was not much confidence and not many of us knew what we were doing, but we were following the consumers. Eyeballs had value and so we followed them online through dial-up connections.
<\/p>\n\n\n\n

Consumer habits changed. People went from wanting their content and services curated by the Yahoo\u2019s, MSN\u2019s and Lycos\u2019 and they moved to looking at themselves through search. People wanted to explore the internet and the new gatekeepers were search engines. From Ask Jeeves and Alta-Vista to Hotbot and ultimately Google, the search engines, many of whom evolved from the portals, were a novel new way to explore the World Wide Web – and search-led consumption drove the next phase of the expansion of the internet and created a new form of advertising.
<\/p>\n\n\n\n

Search advertising was (and I would argue still probably is) the ultimate form of direct response advertising (I believe this will change but ultimately be augmented by generative and chat-based AI), but at the time, this was viewed with scepticism. I can still remember explaining to brands that if consumers were searching for them and their products it probably made sense to appear in the results, whether they ranked naturally or not. This was not well received and many thought we were selling snake oil!
<\/p>\n\n\n\n

Social Media and UGC were next, and for years brands pushed back against the idea of advertising anywhere that there was content created by the public. It seems crazy now, but brands thought this was non-negotiable. YouTube – No. Facebook – first answer; \u201cWhat\u2019s that?\u201d – second answer \u201cNo\u201d.
<\/p>\n\n\n\n

In the world we live in today, where the duopoly control 80%++ of digital advertising, it seems alien that less than 15 years ago, search advertising wasn\u2019t a given, 10-12 years ago, UGC was mostly a big, fat NO.<\/p>\n\n\n\n

What changed the minds of advertisers? Consumers. Consumption habits and \u201ctime spent\u201d shifted the dial, it meant that advertisers needed to be somewhere that felt uncomfortable, somewhere they didn\u2019t fully understand. Consumers got it before brands did, and the rest, as they say, is history\u2026.
<\/p>\n\n\n\n

Except it\u2019s not. We\u2019re here again. The same arguments. The same \u201cit\u2019ll never work\u201d. The same \u201cit\u2019s not a thing\u201d. We seem to constantly cycle through arguments about why ideas that no consumers like matter (Metaverse) and why things that consumers do, but brands don’t do, are just a fad. SPOILER; the first lot very very rarely materialises and the second group are rarely a fad.
<\/p>\n\n\n\n

So, what am I talking about? Where are the consumers starting to huddle around, waiting for quality brands and retailers to join them? Live Commerce, specifically, the game changer that is TikTok Live Commerce. The global platform is commanding an average of 95 minutes a day of the people who partake. 95 minutes a day. More than Instagram and Facebook combined. More than Youtube, Netflix and Disney combined.
<\/p>\n\n\n\n

This makes TikTok the most popular app\/website\/media owner on the planet right now. End of story. Deal with it.<\/p>\n\n\n\n

It makes sense, we live in a world which is different to the one that community-based social networks were born into. Video is eating the world; communication, connection, and consumption are all being driven by the utility of 3, 4 and 5G, WiFi everywhere, and a widescreen in every pocket. Data costs are through the floor and people crave the connection to others that video can provide more than any text or graphic-based environment.
<\/p>\n\n\n\n

By our estimations, Live Commerce on TikTok in South East Asia (Indonesia, Malaysia, Vietnam, Thailand, the Philippines and Singapore) will pass $1bn in GMV a month by the middle of 2023 at a per month growth rate that hasn’t been seen in any e-commerce platform for years.
<\/p>\n\n\n\n

We believe that TikTok Live Commerce will be at a $100bn GMV run rate by the end of the year in those markets, and whilst it won’t double the size of the e-commerce pie, it will add significantly whilst also impacting other players from whom it will strip share.<\/p>\n\n\n\n

TikTok has pushed GO on the biggest trojan horse that retail has ever seen, and whilst this train has been approaching the station slowly, sounding its horn, screeching and calling out its arrival, it\u2019s still going to be a shock to many\u2026
<\/p>\n\n\n\n

Live Commerce, or frictionless commerce, or in-stream shopping, or (heaven forbid) Shoppertainment (please lord no\u2026) is around a $600bn market in China. Lots of people have seen it, lots of brands, platforms and retailers have thought they understand what it is, and lots of questions have been asked about whether it will flourish in the Rest of the World (RoW) as it has in China.<\/p>\n\n\n\n

The thing is, most people have been doing it wrong. Seeing it wrong. Missing the point. Mostly these are the same people who view TikTok itself with a derisory smirk and the phrase \u201cit\u2019s just dance videos\u201d (*side-note, if your expert agency says this – sack them, on the spot, sack them immediately)\u2026
<\/p>\n\n\n\n

Live Commerce is, by definition, two things, it is Live, and it is Commerce – it is not a stream on one website that directs a consumer somewhere else to buy. It is not a stream that advertises a product. It is not a cross-platform, cross-functional promotion – it is a Live video (the clue is in the name) where you can buy things (also in the name) on the same site, without leaving the video environment.<\/p>\n\n\n\n

Usually, that means it only happens in a logged-in environment, where a site has your details, and this means that in 2-4 clicks you go from video to transaction and back to the video. It\u2019s that easy. That\u2019s the point.
<\/p>\n\n\n\n

In RoW, people have been distracted with influencers, links to other sites, off-platform transactions etc and they haven’t actually seen the train that is heading for them. Millions of people sell on relatively boring streams as another window to an e-commerce basket. Lego, Unilever, P&G, J&J and lots of other groups are part of the billion-dollar club. Brand groups that deliver over a billion USD through Live Commerce channels that THEY OWN. Not influencers, not celebrities, they are the channels owned by the brands, mostly fronted by full-time staff with the occasional celebrity\/headliner, but mostly, just staff in the equivalent of a brand store in a mall.<\/p>\n\n\n\n

The thing with Live Commerce is that it is easy to focus on the headliners because they are, by definition, headliners – but that is like people in China looking at e-commerce in the US and focusing only on the Kardashian’s sponsored posts on Insta. They’re not the same thing. Don’t get distracted by the hype.
<\/p>\n\n\n\n

TikTok, having proven this in SEA, is launching in major markets (already live in Singapore, Malaysia, the Philippines, Indonesia, Vietnam, Thailand, and now pushing the UK and some accounts in the US). Other platforms are starting to realise that this is what all the fuss in China is about, it is not influencers, it is frictionless commerce that happens in video. Technologies like BeLive in APAC and Firework in the US have launched this functionality for brands and retailers, so it is not just happening in one place, but TikTok has the audience for Live Commerce at scale and that will be the game changer.<\/p>\n\n\n\n

There were search engines before Google, and Social Networks before Facebook – they just added huge user numbers and that is what changed the game. That is what shifted the needle and made the unacceptable, acceptable.
<\/p>\n\n\n\n

We believe Live Commerce will be everywhere. The majority of major e-commerce sites will have a form of Live Shopping, and we believe brands will need to manage their presence across those endpoints. Being where people are buying.<\/p>\n\n\n\n

Stickler is there to help from First Sale to Full Scale. Get in touch and let’s chat about your journey.<\/p>\n","protected":false},"excerpt":{"rendered":"

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