Why Live Social Shopping is Bigger Than You Think

Summary

Summary of "Why Live Social Shopping is Bigger Than You Think" The GaryVee Audio Experience – Episode Released on January 6, 2025

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Introduction

In this episode of The GaryVee Audio Experience, host Gary Vaynerchuk delves into the burgeoning phenomenon of live social shopping. Joined by notable guests Kara Swisher, Scott Galloway, and Jim Cramer, the discussion unpacks how live social shopping is revolutionizing the retail landscape, influencing media strategies, and offering unprecedented opportunities for entrepreneurs and established brands alike.

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1. The Emergence of Live Social Shopping

Gary begins by emphasizing the value of attention in the digital age, stating, “Attention is the ultimate asset. These social platforms have the attention. We're going to now shop in that environment” (00:00). He likens live social shopping to QVC but highlights the transformative role of social media algorithms in personalizing shopping experiences. Unlike traditional platforms where consumers had to seek out shopping channels, live social shopping integrates seamlessly into users’ feeds, delivering tailored shopping events based on individual preferences.

2. Overcoming Skepticism and Validating the Model

Kara Swisher expresses skepticism, questioning the necessity of live events beyond existing Instagram ads: “Why do I need something more than what's already selling me on Instagram?” (01:04). Gary counters by sharing impressive statistics, noting that numerous individuals and companies are earning over $1 million monthly through platforms like TikTok Live Shopping: “There are unbelievable amounts of people making or over $1 million a month already on TikTok live shopping” (01:16). This evidence underscores the efficacy and financial viability of live social shopping.

3. Real-World Success and Scalability

Scott Galloway adds that influencers and vendors are spearheading this trend, with influencers themselves becoming lucrative sales channels: “Influencers are making $1 million a month” (01:29). Gary provides a concrete example of his own success, sharing that he recently sold $40,000 worth of T-shirts in just two hours on the Whatnot platform: “Three Mondays ago we sold $40,000 worth of T shirts in two hours” (02:30). This contrasts sharply with his non-live social media efforts, which would have generated significantly lower sales.

4. Transforming Retail Dynamics

The conversation shifts to the broader impact on the retail industry. Gary explains that live social shopping is set to disrupt traditional retail models by shifting media dollars from established retailers like Amazon and Walmart to social platforms: “The Amazons and the Walmarts are taking media dollars now away from social” (03:15). This shift not only affects large retailers but also empowers small businesses to transform their storefronts into interactive live shopping studios, democratizing access to the retail market.

5. Opportunities for Small Businesses and Entrepreneurs

Kara highlights the democratizing effect of live social shopping, noting its potential for entrepreneurial ventures: “Entrepreneurial entrepreneurs can do this too. If you're a small business owner you can get right out there” (04:12). Gary reflects on his early skepticism regarding influencer marketing, which has now evolved into a multi-billion-dollar industry using live social shopping as a cornerstone.

6. Competitive Landscape and Future Outlook

Jim Cramer probes the investment potential and competitive implications for giants like Amazon: “Does it undermine... an investor play on this?” (03:07). Gary posits that live social shopping could be Amazon’s primary competition in the future: “I would argue that live social shopping is the only, only potential thing that Amazon should be working worrying about in their domination” (04:27). He anticipates continued expansion and adoption across major social platforms, including Meta, TikTok, YouTube, and Google: “There's no shot that Meta, TikTok, YouTube, Google are not going to be yelling and screaming about this” (05:01).

7. Success Stories and Leading Brands

Gary highlights several brands that are excelling in live social shopping, emphasizing the importance of product category alignment. He mentions Mary Ruth Organics for vitamins, Abercrombie and Fitch for apparel, and Chili’s for the restaurant sector as exemplars: “Mary Ruth Organics is a brand that's really doing well... Abercrombie and Fitch... Chili’s the restaurant company” (05:23). These brands demonstrate the versatility and wide-reaching impact of live social shopping across various industries.

8. Broader Market Implications

Jim Cramer raises a critical point about the broader economic implications, linking the social media battleground to market performance: “The battleground on social will impact every single, every single stock on the market” (06:44). Gary concurs, suggesting that the integration of live social shopping will have ripple effects across all sectors, influencing consumer behavior, retail strategies, and ultimately, stock valuations.

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Conclusion

The episode underscores that live social shopping is not a transient trend but a fundamental shift in how commerce, media, and consumer engagement intersect. Gary Vaynerchuk and his guests elucidate the multifaceted impact of live social shopping, highlighting its potential to reshape retail dynamics, empower entrepreneurs, and redefine media strategies. As social platforms continue to evolve and integrate shopping into their ecosystems, both established brands and emerging businesses stand to benefit from this transformative movement.

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Notable Quotes with Timestamps

• Gary Vaynerchuk [00:00]: “Attention is the ultimate asset. These social platforms have the attention. We're going to now shop in that environment.”
• Kara Swisher [01:04]: “Why do I need something more than what's already selling me on Instagram?”
• Gary Vaynerchuk [01:16]: “There are unbelievable amounts of people making or over $1 million a month already on TikTok live shopping.”
• Scott Galloway [01:29]: “Influencers are making $1 million a month.”
• Gary Vaynerchuk [02:30]: “Three Mondays ago we sold $40,000 worth of T shirts in two hours.”
• Gary Vaynerchuk [03:15]: “The Amazons and the Walmarts are taking media dollars now away from social.”
• Jim Cramer [03:07]: “Is there an investor play on this?”
• Gary Vaynerchuk [04:27]: “I would argue that live social shopping is the only, only potential thing that Amazon should be working worrying about in their domination.”
• Gary Vaynerchuk [05:23]: “Mary Ruth Organics is a brand that's really doing well... Abercrombie and Fitch... Chili’s the restaurant company.”
• Jim Cramer [06:44]: “The battleground on social will impact every single, every single stock on the market.”

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This comprehensive summary encapsulates the key discussions, insights, and conclusions from the episode, providing a clear understanding of why live social shopping is poised to become a dominant force in the retail and media industries.

Transcript

[Gary Vaynerchuk]

Attention is the ultimate asset. These social platforms have the attention. We're going to now shop in that environment. That's going to affect media, that's going to affect retail and that's going to affect the product services. There's no shot that Meta, TikTok, YouTube, Google are not going to be yelling and screaming about this. X will have this. This is too big. It's happened. This is the year. I mean, next year this is going to be a huge topic for everybody who watches this program and you'll be talking about this. It really is QVC on social, other than the way the algorithms work in social. Now, when a person or a company goes live, they're going to find audiences. The algo is going to bring it to you. So obviously QVC home shopping network in 80s the consumer had to click and go there. The fact that I'm going to be in my feed and then boom, there's a live shopping event and boom, the algo knows that I like T shirts or vitamins or beauty and I get it. That's going to be a big factor.

[Kara Swisher]

Can I just say, like, you're going to have to sell me on the live events because I already buy a lot of stuff on Instagram.

[Gary Vaynerchuk]

Yes.

[Kara Swisher]

Where it's a pretty effective ad. It's flashy, it shows me how it works.

[Gary Vaynerchuk]

Yes.

[Kara Swisher]

The video makes me think, yeah, I want this. I don't know if I want somebody talking at me saying, hey, buy this product. You've got this much time to do, you know, sell me on this. Why do I need something more than what's already selling me on Instagram?

[Gary Vaynerchuk]

Well, I don't really want to sell you. It's been sold. Meaning there are unbelievable amounts of people making or over $1 million a month already on TikTok live shopping. So it's not about, you know, convincing. It's about the.

[Scott Galloway]

Those are people, those are vendors. Those are essentially companies selling their influencer. Influencers are making $1 million a month.

[Gary Vaynerchuk]

Yes. And yes. Right.

[Scott Galloway]

So they have a product.

[Gary Vaynerchuk]

Yes, as well to that.

[Jim Cramer]

And hawking a product.

[Gary Vaynerchuk]

Yes, to that as well. This is, look, this is going to be massive again, this is such a global platform. This has been going on for a decade in China. I've literally been.

[Kara Swisher]

I've watched the stuff in China.

[Gary Vaynerchuk]

Right. I've literally been waiting for 10 years for this. Like, there's videos of me in 2015 saying, this is coming.

[Kara Swisher]

It seems a little hokier than some of the flashy ads I already get.

[Gary Vaynerchuk]

That are, I think you'll appreciate this some print. Let's talk about it. Historically what you're talking about is a print ad. In essence it just happens to be in no video. Great, great.

[Kara Swisher]

Usually shows me something about the product I want.

[Gary Vaynerchuk]

That's video. So that's a commercial. If it's an image that's print. And all this is is qvc. It works. I can speak for myself. I have a Pokemon like brand called Veefriends. We're doing live social shopping. I'm doing seven hours ironically today about it.

[Scott Galloway]

So you're gonna be on for seven hours.

[Gary Vaynerchuk]

I'm gonna be on from 12 to 7 today on whatnot, which is one of the platforms that's emerging. And three Mondays ago we sold $40,000 worth of T shirts in two hours.

[Kara Swisher]

Wow.

[Gary Vaynerchuk]

That if I and we're good at this, did my best social media non live shopping advertising would have sold $3,000.

[Kara Swisher]

Okay. I'm. I'm convinced by numbers like that. We just did a shot from the mall Ramos. I saw not a whole lot of people there.

[Gary Vaynerchuk]

Is this why 7:30 in the morning? Honestly I was back there was like no.

[Kara Swisher]

But we used to do like I've been doing right a long time. It used to be the openings at 6am target.

[Jim Cramer]

Is there an investor play on this? Is there a way and this is changing retail. But is this taken away from Target? Does it take it away from Wal Mart?

[Gary Vaynerchuk]

I'm glad you brought this up. The reason I'm so excited to be here is every retail, every cpg, this is, this is going to be over the next decade a consumer packaged good. So if you're Proctor, if you're PepsiCo, I mean this is going to be a major deal because don't forget we have major channel conflict wars between the packaged good companies and the retailers. And the Amazons and the Walmarts are taking media dollars now away from social. The overall impact to consumable products and to retail of this dynamic in social shopping and now the social Networks taking an 8% rake on every transaction. Six in some cases but 8% and then a 3% process fee. But again this is also going to hit Main Street. If you're a normal store in a small town in Jersey or California on Wednesday at 3pm There is nothing going on. To your point, the retail traffic is changing. The fact that you can turn your little boutique into a studio now and go live shop.

[Kara Swisher]

Entrepreneurial entrepreneurs can do this too. If you're a small business owner you can get right out there.

[Gary Vaynerchuk]

Ten years ago I used to go on this program and others and talk about influencers are going to make money and I got a little. Huh. And now it's a multibillion dollar shopping retailers.

[Jim Cramer]

Does it undermine.

[Gary Vaynerchuk]

Yeah. I would argue that live social shopping is the only, only potential thing that Amazon should be working worrying about in their domination. That's how big this could be.

[Kara Swisher]

That's really amazing. And I guess who this is disrupting is traditional media who might have been pitching you these ads before.

[Gary Vaynerchuk]

Yes. But it's also going to disrupt retail like this. This is another. Don't forget, attention ultimately is the ultimate asset. These social platforms have the attention. We're going to now shop in that environment. That's going to affect the media, that's going to affect retail and that's going to affect the product service.

[Jim Cramer]

Social media companies make money on this.

[Gary Vaynerchuk]

Yes. So again they make for Twitter and.

[Jim Cramer]

Good for maybe some of these other.

[Gary Vaynerchuk]

There's no shot in 2025. I can't wait to come back in six to 12 months when this happens. There's no shot that Metta. Tick tock, YouTube, Google are not going to be yelling and screaming about this. X will have this. This is too big. It's happened.

[Kara Swisher]

Who's the best at it so far?

[Gary Vaynerchuk]

Tick tock. And it's not.

[Scott Galloway]

Tell us the name of an influencer or two that, that you think have made a ton of money from this or leading this.

[Gary Vaynerchuk]

You know it's funny.

[Jim Cramer]

And what do they do to be so in front?

[Gary Vaynerchuk]

So what I'm paying attention to more is the brand. So Mary Ruth Organics is a brand that's really doing well. They're selling their vitamins. It's kind of a modern vitamin company. You saw, it was funny. I was talking to Mona and Dust in the back. You showed the top three things that were selling right. T shirts, vitamins and beauty. And I looked at them and said all three categories that are crushing right now on live social shopping. Abercrombie and Fitch. I don't know if you're paying attention that they're getting a reboot. And then there's also. I think you guys covered this. I don't know if specifically you, but Chili's the restaurant company. There was one TikTok. This is not live social shopping. This is just social. One TikTok that went viral, that represented 40% of its Q3 growth. One TikTok that went viral. It was a triple cheese quesadilla. It wasn't even a limited time offer. Again, Mango gummies, private label mango gummies from Walgreens, the Ocean Spray thing, that was well covered, I'm telling you.

[Jim Cramer]

But I have to make a point.

[Scott Galloway]

Please.

[Jim Cramer]

Is that one of the, what do you call, post mortems on the election?

[Gary Vaynerchuk]

Yes.

[Jim Cramer]

Was that the Trump administration understood TikTok in the way that Biden, the Trump campaign in a way that Biden didn't. And I think what you're talking about now is investors need to understand it.

[Gary Vaynerchuk]

The battleground on social will impact every single, every single stock on the market.