Global livestream shopping platform, ShopShops, has raised $15 million in Series B funding as it looks to grow its platform both in the U.S. and China.
The funding round was led by LightShed Ventures and Acrew Capital and supported by existing investors Union Square Ventures, Forerunner Ventures and The Chernin Group (TCG).
ShopShops was first launched in 2018 as a mobile app that allowed Chinese shoppers to engage with live shopping content on its marketplace from various emerging designers and vintage retailers hailing from 30 cities around the world. The company has since grown and is now focussing its effort on targeting cross-border shoppers in China and in the U.S. market. Both countries are seeing a rapid increase in demand for livestream shopping, albeit the demand is much larger in China.
In 2020, the Chinese livestream shopping industry was valued at $150 billion, up from $66 billion in 2016, according to KPMG. In comparison, the U.S. market is still nascent, but it is expected to continue to grow in the near future. The market is projected to be valued at $25 billion in the U.S. by 2023, up from $6 billion in 2019.
This growth in consumer demand is prompting several big U.S. retailers ranging from Bloomingdales to Petco to experiment with the format as they attempt to crack the code on driving their conversion rates.