In recent years, live streaming has emerged as a booming trend across social media platforms. From Facebook and TikTok to Shopee and Lazada, millions of consumers are drawn to the direct interaction with sellers and the constant deep discounts.
For large enterprises, this presents a golden opportunity to boost sales and expand their market reach. However, for small retailers, this development is creating significant pressure on their competitiveness and business sustainability.
Live streaming has become a booming trend across social media platforms.
Sealing the Deal on Live Streams
According to Mr. Nguyen Cong An, Director of ECO TECHNOLOGY 2A Joint Stock Company, live streaming, or live broadcasting, is not a foreign concept in the digital age.
Initially, this format was primarily used for online events or entertainment. However, since e-commerce platforms and social media networks integrated live streaming sales features, the market has witnessed an unprecedented boom.
Businesses of all sizes have jumped on the live streaming bandwagon to showcase their products and seal deals on the spot.
In the digital age, more and more businesses are turning to live streaming to optimize consumer engagement.
One of the appealing aspects of live streaming is its interactivity. Customers can ask questions and receive immediate answers from the seller, fostering a sense of closeness and trust.
Deep discounts are often offered during the live broadcast, stimulating customers’ shopping desires. Some promotions even last only a few minutes, creating a sense of urgency and triggering impulsive buying behavior.
For instance, Shopee Super Sale and TikTok Shop Flash Sales have become annual events, attracting millions of viewers and online shoppers.
For large companies, live streaming offers an opportunity to reach a massive audience and rapidly boost sales. Additionally, aggressive pricing by prominent brands helps them enhance brand recognition and build trust with customers.
The Impact of Live Streaming on Small Businesses
While large enterprises leverage their financial and technological advantages to thrive in the live streaming arena, small retailers face considerable challenges.
Competing with industry giants is an arduous task for these small businesses. Especially when these prominent brands can afford to continuously offer deep discounts during their live streams.
“I used to have a stable customer base, mostly regulars,” shared Ms. Thanh Mai, owner of a small fashion boutique in Ho Chi Minh City. “But ever since the e-commerce platforms and large enterprises started live streaming and selling at low prices, the number of customers visiting my store has significantly dropped. I can’t compete with their prices and constant promotions.”
Similar situations are faced by many other small businesses. Lacking the resources to join the deep discount campaigns, they struggle to maintain their revenue.
Moreover, shifts in consumer behavior add to the pressure. Customers are increasingly enticed by shocking discounts and gradually lose interest in traditional stores.
Small businesses not only lose customers but also struggle to adapt to the new trend. Many lack the skills or technology to embrace live streaming, causing them to fall further behind their competitors.
With frequent deep discount live streams, small businesses are at risk of being left behind in the competitive race.
Economic experts have voiced concerns about the imbalance between large and small businesses in the live streaming arena.
Financial expert Mac Quang Huy, Chairman of Mac Capital Company Ltd., pointed out that live streaming sales and deep discount campaigns to attract customers create short-term benefits for consumers but also lead to a severe market imbalance.
Large enterprises, with their substantial financial resources, can afford to offer prices that are almost at-cost. Meanwhile, small businesses lack the financial capacity to keep up and risk being pushed out of the game.
Clear regulations are needed for e-commerce platforms to ensure fair competition. Otherwise, in the future, only large corporations will remain, and small businesses will gradually disappear from the market. This will result in a monopoly, allowing the giants to impose higher prices to the detriment of consumers.
Additionally, Mr. Huy emphasized that consumers’ obsession with continuous discounts could lead to negative consequences. “Consumers may lose their sensitivity to the actual value of products,” he shared. “They will expect deep discounts, impacting both large and small enterprises.”
Building Trust and Retaining Customers
Despite the challenges, small businesses can adapt and find opportunities in this new market landscape. Many small enterprises have started embracing live streaming to reach customers. Instead of focusing on deep discounts, they emphasize creating a unique selling point through product quality and customer service.
“Instead of chasing discounts, I strive to make a difference by providing better customer care,” shared Mr. Hoang Nam, owner of a natural cosmetics store in Da Nang. “My live streams not only sell products but also educate viewers about beauty, helping them understand our products better. This approach helps me build trust and retain long-term customers.”
Small businesses need to focus on creating a unique selling point through product quality and exceptional customer service.
Additionally, experts encourage small businesses to collaborate and form alliances to gain collective strength. Linking stores in the same industry can reduce competitive pressure and enable more reasonable sales campaigns.
Simultaneously, small businesses must maximize the use of technology and digital platforms to enhance their operational efficiency and competitiveness.
Live streaming sales and deep discount strategies are bringing about significant changes in the retail landscape. While large enterprises benefit from this boom, small businesses face challenges in maintaining their competitiveness.
To survive and thrive, small businesses need to be agile, embrace technology, and focus on service quality. E-commerce platforms and regulatory bodies must also implement appropriate measures to ensure a fair and healthy competitive environment for all participants.
From a legal perspective, aggressive discounting through live streaming could potentially violate competition laws. Attorney Pham Duy Anh from A+ Law Firm elaborated, “If large enterprises employ deep discount campaigns unfairly, it could be considered market dominance and crushing their competitors. Authorities should intervene to regulate and protect the interests of small businesses.”
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