How the pandemic gave rise to luxury live selling
Buying It bags and luxury watches from live-streamed videos has become a coping mechanism for Filipinos with spending power
There was a time when people turned to home shopping channels on TV for some retail therapy or white noise. An enthusiastic TV host would present a curious item, say a tummy compressor, to use at the gym or a nifty kitchen appliance. If an audience member wants the item, all he or she needs to do is dial the phone number on the screen. But wait, there’s more! If the customer calls now, the network will even throw in a discount!
This TV shopping format may seem archaic compared to today’s easy checkout from our favorite shopping sites, but home shopping, or a variation of it, is still very much alive in the online sphere. It’s called live selling, and it’s available on many platforms like Facebook, Shopee and Amazon.
“It’s kind of a personalized shopping experience,” said Grant Gentolia, marketing manager of Luxe In.
Since 2019, the luxury retail store located at W Global Center has showcased preloved designer bags and goods through Facebook Live. Luxe In used this online strategy to give its followers a preview of their items during events and increase foot traffic in their store.
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The pandemic, however, gave live selling additional purpose, Gentolia said.
“Most stores that sell luxury brands are classified as nonessential during the pandemic,” said Iris Pastor, chief operating officer of Luxe In. “The only thing that can really help your client purchase a luxury bag is by doing live selling because it’s like a virtual tour of your store, so they can actually see the bag, they can message the one who’s doing the live selling real time, like, maybe, ‘Can I see the inside of the bag?’ It’s like having a virtual sales assistant.”
Auction-style videos
Stores like Luxe In and other online luxury shops offer preloved or previously owned It bags like Hermès, Chanel, Louis Vuitton and
Prada at nearly half the original price. They post their inventory on either their websites or social media pages. But several times a week, these shops host auction-style videos to showcase their items in real time.
It’s during these live videos that sellers flex their wares. They show every inch of the bag, from top to bottom, and if the bag comes with a dust bag, a box, a receipt or the authenticity card. Sellers also rank the bag, from S (unused), SA (very good condition), AB (good condition) and B (used).
“Since it’s live selling, people cannot see [the items in person]. People will rely on what I say on screen. So, if I don’t say all the flaws or show them what’s wrong with the item, clients would lose their trust,” said Mary Shayne Castrillo, who runs S and C Luxuries Online Store.
Castrillo and her business partner Chean Fernando-Lepiten run their business entirely online, so they make sure to declare scratches or flaws on their items and show what the inside of the bag looks like.
“It should be authentic because we’re selling authentic luxury items,” the marketing specialist told Lifestyle in an interview.
Gentolia said that they would have between 30 and 50 live viewers per stream, but the views would total between 3,000 to 5,000. Castrillo said that during the live selling, she would have up to 100 viewers, but the video would reach up to 2,000 users even after the live.
“What we’ve learned from our clients is that they don’t really watch it during the live broadcast so what’s happening is like video on demand,” Gentolia said. “A lot of our clientele are very busy people as well . . . sometimes they joke that the live video is like a sleeping aid. That’s why if you look at our business insights, a lot of views come in at 11 p.m. to 2 a.m. We get a lot of inquiries during those times.”
Up to 85 percent in 2021
Live selling has become a popular platform for consumers and small business owners. Ukay-ukay or preloved clothes, gowns and home appliances are just some of the products that can be bought through live selling. According to Emerging Trends Research commissioned by social media giant Facebook, 25 percent of their Filipino respondents said that they have tried live shopping. This number is set to increase to a staggering 85 percent in 2021.
Margarette Canon of Canon E-Bags Prime has been in the luxury retail industry for more than 10 years, starting out with Longchamp bags, before bringing in high-end brands. It was only recently that Canon started doing live selling of designer bags.
As early as May 2020, her employees told her how people like tuning in and buying during live selling, but Canon, having just given birth at the time, didn’t consider it.
“Around November, after nine months of mostly staying at home, with no events or parties, I told myself, why not try it and find out the difference from just posting? I missed doing fun things and interaction with people,” she said in an e-mail interview.
“I realized you get to liquidate faster when you do live. It is entertaining and fun. People like getting first dibs on the items. Markup is lower, but it’s fine. I sold some of the dead stocks below cost but it’s part of business,” Canon added.
Live selling, like any business, also comes with its own challenges. Aside from the usual technical difficulties like unstable internet connection, e-commerce streaming is also prone to “joy miners” or “joy reservers.” These are social media users who are quick to grab an item (“Mine!”) but actually don’t end up paying for it. Because of this, Castrillo said that the bag doesn’t go to a legitimate customer.
Lower price
The luxury resale market in countries like the United States and France recorded a steady growth in the previous years. The customers adore the luxury items but it’s the low price that makes bags and watches all the more attractive.
Even during the pandemic, second-hand luxury goods are performing surprisingly well.
Niks Alvarez, who has been selling designer bags through his page Laxillion Luxury PH since 2018, said his sales were much better the past year compared to the years before.
“Before, my business was stagnant. I was at the point where I asked myself if I should continue. But during the pandemic, the demand of my clients became more aggressive,” he said.
He observed that some of his clients have become more practical in the sense that they are choosing preloved items over brand new because they are more affordable.
This demand for secondhand goods also surprised Luxe In and S and C Luxuries Online Store.
Pastor said that at the beginning of the lockdown, when many people lost their sources of income, they became more sensitive about posting high-value items.
“There are certain segments of society that’s really affected by the pandemic in terms of business or employment status, but there are also other segments in our economy whose businesses are surviving or making money despite the pandemic situation. So I’m sure these are the people who have spending power, these are the people who probably have a lot more savings than others,” she added.
Coping mechanism
Castrillo said that live shopping may be a coping mechanism during these anxiety-ridden times. Her customers said that watching live selling and buying stuff online has become a sort of relaxation technique. This and the limited mobility are factors that contribute to the increase in sales.
“Even Lazada and e-commerce sites are gaining a lot during these time because people cannot go out,” she added.
Clients aged between 20 and 60 from the upper middle-class bracket are among the people who tune in and check out preloved luxury bags, the sellers observed.
Gentolia added that these clients are “very nitpicky” and “very intelligent” with their shopping because they’ve done their research and they already know what they want. These clients also know how to spot authentic bags, as well.
“I’m sure those people who buy, these are not their first luxury items . . . so they already know what they’re looking for, what brands they really want to purchase. They’ve researched what’s the ‘It’ bag right now,” Pastor added.
There are also a lot of reasons these consumers buy and collect designer bags. For some, it’s retail therapy; for others they love feeling good, said Castrillo.
A bag can also be a reminder of their hard work or achievement, said Pastor. For others, bags are not just fashion accessories but also a good investment. Even Kylie Jenner said so.