In today's deeply connected digital landscape, where consumer engagement spans multiple channels, the ability of brands to effectively manage access to products and services has become paramount for their continued success. Now, imagine a world where every customer is welcomed and guided seamlessly, akin to the personalized service provided by a concierge in a luxury hotel. Read a VTEX analysis of what "concierge commerce" means below:

Just as a concierge ensures a seamless experience, retail brands are adopting similar approaches virtually. This involves creating a digital persona that greets and guides customers, providing personalized support. An increasing number of retail brands are embracing a comparable strategy to virtually meet the diverse needs of today's consumers.

By embracing the concept of a digital concierge, businesses can elevate customer satisfaction, foster loyalty, and stand out in today's competitive market. It's not just about selling products or services anymore; it's about curating unforgettable experiences and building lasting relationships with customers.

The concept of 'concierge commerce' epitomizes the evolving mode of shopping for online consumers today, driven by emerging trends such as voice shopping, video commerce, and live shopping. Analogous to the role of a concierge at the entrance of a hotel or any point serving as an entryway to diverse environments, the concierge in next-generation ecommerce serves to welcome and guide individuals embarking on their customer journey.

Illustrating the significance of this role, recent data from the ARMO reveals that Romania ranks 3rd among EU member states in Central and Eastern Europe in terms of online sales. Electronic commerce represents 3.17% of our country's GDP, which places us in 12th place on the European continent, out of the 37 states analyzed.

Central to the appeal of concierge commerce for a burgeoning audience of consumers is the omnichannel nature of the shopping experience, seamlessly traversing various touchpoints.

The intersection of physical and digital retail has become commonplace, facilitated by smartphones as a conduit between these realms. Smartphones are now the most commonly used touchpoint before finalizing a purchase, providing personalized benefits, tap payment options, and concierge-like assistance.

Voice Shopping: Fueling Growth Through Voice Assistants

The smartphone isn't the sole device driving a shift in shopping behavior. Voice shopping has emerged as a significant trend, reshaping the customer experience in recent years. Enabled by voice assistants like Alexa, Google Assistant, and Siri, consumers can now make purchases using their voices. These voice assistants are integrated into smart speakers for home use or accessible through mobile phones. This innovation relies on advanced AI algorithms to interpret consumer requests accurately, guiding them through the purchase process. Globally, voice assistant eCommerce transactions have surged to approximately $20 billion, quadrupling since 2021. The appeal of voice shopping lies in the widespread adoption of smart speakers and voice assistant apps, offering a simplified customer experience through voice and Conversational Interfaces. However, there are still barriers, such as exclusive vendor restrictions, hindering broader adoption. For instance, only Amazon Prime members can shop through Alexa, limiting the concierge function to a single platform.

From video commerce to live shopping, the current trends

Driven by platforms like TikTok, video commerce stands out as a swiftly rising trend. Typically, an influencer showcases a product in a video, either pre-recorded or live, and shares a link directing viewers to a landing page or website for purchase. This underlines the transformative influence of social commerce, as evidenced by the widespread adoption of the #TikTokMadeMeBuyIt hashtag, with global views exceeding 50 billion. This exemplifies the disruptive force of social commerce. In a podcast last year, The Wall Street Journal stated that shopping on social media, not just TikTok-generated, will become a $100 billion market in the United States by 2025.

In reality, video commerce isn't exclusively confined to social networks but can be considered a subset of the current predominant trend: live shopping, also known as live commerce, livestream shopping, or live video shopping. It's a strategy where retailers showcase their products in an online video, interacting simultaneously with buyers in real time. A 2022 McKinsey study explained how, since its emergence in 2016 in China with the launch of Alibaba's Taobao Live, this phenomenon has exploded in other markets, including the United States and Europe.

Concierge commerce and live shopping: the cases of Xiaomi and Nestlé

A research conducted by VTEX with DOXA has found that live shopping is still relatively unknown, with 72% of respondents stating they have little familiarity with this buying and selling model. However, this doesn't negate the inclination of retailers to add this method of purchase alongside others, as claimed by 4 out of 10 respondents in the survey. This inclination is based on the fact that interaction with potential buyers lends itself to very flexible forms ranging from tutorials to interviews, even behind-the-scenes glimpses. Regardless of the format, streaming also includes interactive elements such as games, quizzes, and gadgets to enhance audience engagement. Among the brands that have tested the effectiveness of live shopping are names like Xiaomi and Nestlé, whose live shopping sessions have yielded conversion rates impossible to achieve through traditional channels.

In 2021, the Chinese telecommunications giant organized a 40-minute live shopping event in Mexico. The event coincided with the day Xiaomi recorded its highest sales percentage since its presence began in the South American country.

Nestlé, on the other hand, chose B2E (business-to-employer) ecommerce, aimed at its own employees, as a space to experiment with live shopping. After achieving more than promising results in this area, the Swiss multinational has initiated several similar projects in its sales channels and even those of partners, involving them in a common co-marketing strategy.

Concierge commerce thrives in the realm of live shopping, yet its potential transcends this domain. This digital concierge isn't limited to one trend; it's a master of all, seamlessly weaving voice, video, and live interactions into a tapestry of unforgettable purchasing experiences. From the first encounter to the final transaction, it's about crafting a journey that leaves a lasting impression, transforming every shopping moment into a memorable stay at the "hotel" of modern commerce.

About VTEX

VTEX (NYSE: VTEX) is the composable and complete commerce platform that enables companies that want to make smart IT investments to modernize their technology solutions, streamline their operations and reduce maintenance costs. Through our pragmatic, composability-based approach, we empower brands, distributors, and retailers with unmatched flexibility and comprehensive solutions, empowering them to invest exclusively in what provides a competitive advantage and increases profitability. VTEX enjoys the trust of 2,600 B2C and B2B customers globally, including Carrefour, Colgate, Motorola, Sony, Stanley Black & Decker and Whirlpool, with 3,500 active online stores in 43 countries (data for the last fiscal year ended December 31, 2023).

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*This is a Press release.