JNA September/ October 2024

STRATEGY 企业策略 64 | JNA September/October 2024 product presentations and sales strategies.” For KGK, the live selling model works particularly well in the US, China, Hong Kong, Japan and other Asian countries. Aside from the convenience the channel affords, live selling offers a level of authenticity that resonates with buyers – real-time product demonstrations allow consumers to see the product’s features up close and ask questions directly, which builds trust. The sense of urgency and excitement generated during live sales also creates a feeling of exclusivity, which appeals to consumers who enjoy being part of a unique shopping event. Effective conversions Live selling has become a significant and growing portion of KGK’s overall sales, according to Kothari. Midrange to high-end jewellery tends to perform well during such sessions, particularly items that can be easily showcased and appreciated through video. These include intricate necklaces, rings and bracelets that feature unique designs or gemstones. “The price points that resonate most with live selling audiences are generally those that offer perceived value, whether through the quality of the materials, the design or the exclusivity of the piece,” he revealed. As it anticipates the live selling trend to grow further over the coming years, KGK intends to deepen its engagement with emerging influencers and expand its live selling initiatives into new markets. The channel has also become a significant revenue stream for Vithal Trading. Palriwala estimated that half of the company’s sales now comes from live selling and the other half from its wholesale business. “We do not consider live sellers as our agents. They work very hard to showcase our jewellery to their audience. They are our valued buyers and, in a way, our suppliers, providing us with a wide range of customers,” he said. Growth potential For Hatai Gems, livestreaming brings in over 10 per cent of sales and is poised to contribute even more, said Siamwalla. The live sellers it works with adopt two approaches – either selling existing stock or placing orders for more popular items, she disclosed. “When we attend exhibitions in Thailand or overseas, our regular livestreamers would contact us to request for a space for their sessions. We reserve this for them and prepare the stock they would sell, based on their preferences. The live selling field is quite competitive too,” she continued. Chinese pearl jewellery retailer Y&M Pearls started selling jewellery through livestreaming in 2022, according to Ye XiaoBo, chairman of Y&M Pearls. Sales have since maintained an upward trajectory, with 80 per cent of overall sales generated from livestreaming in 2024. As the livestreaming sector is well established and highly competitive in China, businesses there are adopting new strategies to further boost sales. “Livestreaming + short video” has proven an effective strategy to drive sales, according to the China Internet Network Information Center (CNNIC). Data from CNNIC’s Blue Book on Internet Empowered Digital Consumption Report released in June 2024 showed that 71.2 per cent of users who watch short videos or livestreams have made purchases. Short-form videos on social media platforms now serve as pre-sale activities for livestreaming sessions. Companies use these to initially engage users with diverse content that resonates with the audience. This, in turn, encourages them to join the livestreaming sessions where they are prompted to make purchases. Navigating challenges The live selling model however comes with its own set of challenges. Companies often cite a high rate of returns from live sales, arising from consumer dissatisfaction with purchased items. For Ye, these are understandable, given the high unit prices of jewellery. Consumers are naturally selective in their choices, particularly since jewellery is not a necessity. Refund and return options play a crucial role in safeguarding consumers’ rights during online purchases, she noted. “We can boost consumer confidence by producing good-quality products that meet their expectations and providing detailed explanations during the livestreaming sessions,” Ye said. KGK has also observed some returns from live sales but mitigates this through detailed product descriptions and high-quality video demonstrations during live Live seller at Jewellery & Gem WORLD Hong Kong 2023 在2023年环球盛事 | 九月香港珠宝首饰展览 会的直播卖家

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