Streaming platform Twitch is best known for its dual-camera livestreams of gamers narrating their forays through virtual worlds. But the platform may also be the dark horse of live shopping, which, despite meteoric success in China, has so far struggled to get off the ground in the United States.

In December, Twitch (which was acquired by Amazon in 2014 for $970 million) brought back its holiday livestream shopping events—a series of shoppable game shows showcasing products ranging from underwear to headphones.

An infomercial-style stream featuring gamers clad in Christmas sweaters with the word “ad” across the front might not seem like a big revenue generator, but Twitch said live shopping is a natural space for it to be in.

“Twitch pioneered the online patronage models we’re seeing across the creator economy today,” Adam Harris, global head of Twitch’s Brand Partnership Studio, told Retail Brew via senior communications manager Adiya Taylor. “As a leader in livestream entertainment, we build authentic ways for Gen Z and Millennial consumers to engage in live shopping.”

Setting the scene

There’s been a lot of talk about the promise of livestream shopping, but changing shopping habits takes time, and so far the format has struggled to gain traction with American consumers, said Sky Canaves, a senior analyst focusing on retail and e-commerce at Insider Intelligence.

“Around half [of US consumers] have no interest or haven’t heard of livestream shopping,” Canaves said, pointing to Insider data, which indicates that only 6% of Americans shop from livestreams regularly.

• Compare this to China, where live shopping makes up nearly 12% of retail e-commerce sales, and where Insider data predicts that by the end of 2023, more than 45% of digital shoppers will buy via livestream.

“When you look at the 18-to-24 demographic [in the US], we get a much different picture—there’s a lot more interest…and familiarity with livestream shopping,” Canaves said.

Keep reading here.—MA

Ding, ding, ding! Adobe’s annual holiday sales data numbers are in, and it looks like consumers shopped online a lot: a total of $211.7 billion online, to be exact, between November 1 and December 31.

The numbers signify a YoY bump of 3.5%.

While toys and video games led the way, apparel and accessories both saw an uptick in demand, up 94% over October 2022.

The results were likely a sigh of relief for fashion retailers, given factors such as inflation and fear of a recession that have tended to cause consumers to be more careful about their purchases.

Jonah Ellin, chief product officer at 1010data, believes the increased consumer spending has been a long time coming. “There’s been a lot of pent-up demand,” he told Retail Brew. “The general sentiment, especially with the upper class, is, ‘We have money, we’ve worked hard, and we deserve this.’”

Shop it like it’s hot: While this translated well for luxury apparel sales, brands may have also had a little bit of help from online customers shopping “where they’re being marketed,” as Ellin put it.

“When you’re online, you get targeted for the things that they’re able to see that you’re interested in,” Ellin told us. “You pull the trigger on it. That’s fairly evident in the uptick in mobile shopping through the holiday season.”

• 47% of online sales during the holidays were placed through smartphones, per Adobe.

The continued prevalence of buy now, pay later (BNPL) offered a potential bright spot, as orders via the payment solution rose 4% in 2022 compared to 2021, but revenue from that category dropped 2% YoY.

Keep reading here.—JS

Today’s top retail reads.

Balancing act: After several quarters of raising prices on goods ranging from chicken wings to air purifiers, some retailers are looking at Q4 sales volumes, and deciding it’s time to rein in costs to attract budget-conscious shoppers. (the Wall Street Journal)

Artistic license: A white aluminum tree. A jacket made entirely of washi paper. A black-and-white drawing of a walrus. Inside Canada Goose’s art collection, which is the largest collection of Inuit art in the world, and which can be seen inside the brand’s global brick-and-mortar stores. (Fast Company)

Top dollar: In 2022, store openings outpaced store closures by about two to one. So, what are all of these new stores? Well, we’re in the “discount store decade,” and hundreds of those store openings are dollar stores. (NPR)

What happened in the world of retail this week in…1905 and beyond? Retail Brew takes you way, way, way back.

• On January 19, 2010, Kraft Foods agreed to buy Cadbury for $19 billion. The deal wasn’t particularly well received in the UK, where a “Keep Cadbury British” campaign gained traction.
• On January 19, 2007, Beijing’s first McDonald’s drive-thru opened. The occasion was marked by an opening ceremony that included a Chinese-speaking Ronald McDonald and traditional lion dancers.
• On January 20, 1934, Japanese electronics and photography company Fujifilm was founded.
• On January 21, 1905, Christian Dior, who would go on to be one of the most well-known fashion designers in the world, was born.

Catch up on the Retail Brew stories you may have missed.

• Here are the CPG trends to expect in 2023
• California basically banned fur. So what’s next for retailers?
• Holiday retail sales were up in 2022 as retailers diversified