Startup Alliance "Small Business Live Commerce Sales Increase Up to 547% in 3 Sessions"

Startup Alliance is holding a live commerce seminar on the 25th at the Jeongdong 1928 Art Center in Seoul.
[Photo by Startup Alliance]

[Asia Economy Reporter Kwak Min-jae] A study has found that small business owners and sole proprietors who cannot enter TV home shopping saw their sales increase by up to 547% after using live commerce just three times.

Startup Alliance held a special seminar on the 25th at the Jeongdong 1928 Art Center conference room with the theme "Live Commerce, a New Tool for Local Small Business Owners," in collaboration with the Digital Economy Forum.

In the first presentation, Professor Lee Seung-yeop of Pukyong National University emphasized the need for caution in viewing TV home shopping and live commerce as competitors, presenting analysis results from both user and seller perspectives. He stated, "Live commerce is a differentiated tool that helps expand sales channels for local small business owners and sole proprietors that TV home shopping cannot cover, contributing socially by supporting local neighborhood markets."

Research on user perceptions of TV home shopping and live commerce showed significant differences, with almost no overlap in the composition of sellers. On average, 82% of companies supplying products to TV home shopping were large and medium-sized enterprises, whereas 85-99.5% of live commerce sellers were small businesses and sole proprietors. Regarding the location of sellers, live commerce had up to 3.7 times more non-capital region companies than TV home shopping, and the proportion of companies located in small and medium-sized cities or counties was up to twice as high in live commerce compared to TV home shopping.

Professor Bu Soo-hyun of Gyeongsang National University stated, "The core advantage of live commerce is its low operating costs," adding, "Home shopping requires large-scale manpower and product assortment to participate, but live commerce is a tool that small business owners who cannot enter home shopping can commonly use, which is its most important strength." He especially highlighted the value live commerce provides to small business owners by saying, "Products from small business owners with almost no brand recognition tend to be perceived as low quality, but the owner's 'direct appearance' and 'product demonstration' through live commerce convey sincerity to consumers and build trust."

The comprehensive discussion was moderated by Professor Lee Sang-woo of Yonsei University and included Professor Kwak Kyu-tae of Soonchunhyang University, Professor Kim Jeong-hwan of Pukyong National University, Professor Choi Bo-reum of University of Seoul, Attorney Lee Ji-eun of Law Firm Geonwoo, CEO Kim Hanna of Grip Company, and CEO Hong Seok-hyun of Hongganejip Mandu.

Professor Choi Bo-reum said, "A major reason consumers hesitate to purchase products from small business owners is doubts about product quality, but trust in products can be gained through interaction in live commerce. Also, offline small business owners take a long time to make their first sales when transitioning online, but using live commerce resolves issues related to customer contact and promotion, providing great help to small business owners."

Hong Seok-hyun, a small business owner who operates directly on the live commerce platform Grip, said, "We were able to overcome limitations confined to local markets and social environments such as COVID-19 through live commerce. The ability to communicate directly with consumers nationwide is a major advantage," adding, "I hope there will be interest in education and promotion so that small business owners' ideas can be commercialized and good live broadcasts can be produced."

Kim Hanna, CEO of Grip Company, said, "When a live commerce success story emerged from a single store in Bupyeong Underground Shopping Center, all the nearby shop owners started using live commerce, revitalizing the local market," and added, "For small business owners, live commerce is a matter of livelihood. Instead of discussing regulations in a market that is just beginning, it is necessary to create an environment where small business owners can work in various conditions. The platform will focus on education and guidance for sellers and technological advancement."

This content was produced with the assistance of AI translation services.