The time for online shopping is now.
The pandemic has ushered in the era of ecommerce as Americans embrace curbside pickup, next day deliveries and grocery pick-up services. There's likely no going back as an increasing number of consumers get accustomed to shopping online.
Now, retailers are taking experience to another level with streaming, data personalization, augmented reality and other features that are only likely to grow digital shopping habits.
Here are three trends sweeping ecommerce and the Los Angeles companies that are fueling it:
<h2>AR and Livestreaming Usher in New Virtual Shopping Experiences </h2><p>
Makeup and clothing retailers that relied on in-store shoppers have turned to augmented reality features to lure customers — from their own homes where they don't have to social distance.
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YouTube and Amazon both launched livestreaming services this year, letting consumers shop for clothes or try on makeup from their phone screens. Meanwhile, Google's new augmented reality platform built with Toronto-based ModiFace pairs ecommerce sites with the virtual try-on technology.
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In Los Angeles, two venture-backed livestreaming shopping companies are making waves. Popshop Live launched in 2019 and this year closed a <a href="https://dot.la/popshop-live-2646369816/particle-2" target="_self">$3 million round in July</a> as CEO and founder Danielle Li watched users spike in a push from businesses to stay afloat.
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"Retailers who have one to three locations quickly realized they're getting nearly the same amount of traffic," said Philip Soriano, Popshop Live's head of operations. "People come to us and will probably stick around even if the foot traffic comes back."
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Meanwhile, L.A.-based NTWRK offers livestreamed shows featuring limited-edition gear launched by celebrities and designers. The video commerce platform, founded in 2018 and backed by Live Nation Entertainment, recently partnered with Snap to stream interviews with designers and creators about items they're preparing to drop.
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<a href="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQ0MzU5Mi9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY2ODEwMDUwM30.v7E4hnsaVUx6nW9dQAd5GP8Vfjm8nWMcCZuXvWg-BkI/img.png?width=980" target="_blank"><img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQ0MzU5Mi9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY2ODEwMDUwM30.v7E4hnsaVUx6nW9dQAd5GP8Vfjm8nWMcCZuXvWg-BkI/img.png?width=980" id="6bc48" class="rm-shortcode" data-rm-shortcode-id="ba7f934e0b8a437235ad5ea58adfe58f" data-rm-shortcode-name="rebelmouse-image" alt="Popshop Live" /></a>
<small class="image-media media-caption" placeholder="Add Photo Caption...">Popshop Live Became Essential for LA Boutiques During the Shutdown. Now It's Got $3M to Grow</small>
</p><h2>Entertainment and Shopping Have Teamed Up</h2><p>
From platforms like Popshop Live to Instagram's new Reels feature, tech companies are harnessing influencers and networks of users to promote consumer products.
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As companies feel the pressure to build an online presence, many are turning to <a href="https://dot.la/influencer-marketing-2648899321/influence-in-the-wake-of-ecommerce" target="_self">influencer marketing campaigns</a> to ramp up sales. And marketers only expect that trend to continue.
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MagicLinks, an L.A. social media marketing company, found that across a sample of 4,500 ecommerce retailers, sales directed through YouTube influencers jumped 80% year over year in the quarter from June through August. The company said influencer-driven sales were up 115% across customers, including Target, L'Oreal and Best Buy.
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Other marketing agencies said they've increased budgets for influencer content since the pandemic. Even bigger companies are giving it a shot: Tito's Vodka and Superdry to name a couple.
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"Any brand that wants to connect with Gen Z, and sell whatever product or service they have, has to engage (with these platforms)," Glenn Ginsburg, SVP of global partnerships at influencer marketing agency <a href="https://www.qyoumedia.com/" rel="noopener noreferrer" target="_blank">The QYOU</a> told dot.LA. "Moving forward I think we'll see brands start to build deeper relationships with influencers."
</p><h2>Better Recommendations Are on the Way </h2><p>
Personalization has swept ecommerce as companies are ramping up product recommendations online. AI is now becoming more precise in helping companies steer shoppers toward products that fit their profile.
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Gabriel Nipote is the co-founder and COO of Halla, the L.A.-based machine learning company builds algorithms for online groceries to make smarter food recommendations. Unlike retail where shoppers are comfortable, online grocery shopping is starting to gain market traction.
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It's there that the gaps to machine learning are clear. For instance, some online markets during the pandemic offered customers product substitutions that didn't resemble what they ordered.
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"There are special places on Twitter and Reddit for people to complain about their tortillas being replaced by bags of flour, or receiving recommendations for hygiene products while browsing bagels," Nipote said.
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And because shoppers have only recently started coming around to grocery shopping online, data is still scant and difficult to draw broad conclusions from. As more shoppers fill shopping carts online, Nipote, whose startup team has doubled since March, expects more tech solutions for personalized shopping to launch in 2021.
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The Federal Trade Commission ordered TikTok, Snap, YouTube, Amazon and Twitter, along with four other social media and streaming sites to turn over information about how they collect and use information about users.
The far-reaching probe is aimed at exposing the algorithms and other tools that have fueled the technology companies' growth and helped them penetrate so deeply into the American psyche.
"Policymakers and the public are in the dark about what social media and video streaming services do to capture and sell users' data and attention. It is alarming that we still know so little about companies that know so much about us," three Federal Trade Commissioner said in a joint statement.
<p>Discord, Facebook, Reddit and WhatsApp were also named in the order.</p><p>In launching the probe, the three said it "will lift the hood on the social media and video streaming firms." These social media companies, they argue, turned from a force to connect people to one that is monetizing Americans' private lives for their own financial gain.</p><p>The orders were issued under a provision of the Federal Trade Commission Act, Section 6(b), that gives the commission authority to conduct wide-ranging studies that don't have "a specific law enforcement purpose."</p><p>The companies have 45 days to respond. </p><p>Neither TikTok, which is based in Los Angeles and owned by China-based ByteDance, nor Santa Monica-based Snap responded to a request for comment. </p><p>The orders come as big tech companies are under increasing scrutiny from policymakers. </p><p>The FTC slapped Facebook with an antitrust lawsuit last month that accused the social media giant of gobbling up rivals like Instagram to weaken competition. And in October, the Department of Justice brought a civil case against Google, <a href="https://www.reuters.com/article/tech-antitrust-google/california-files-to-join-us-antitrust-lawsuit-against-google-idUSKBN28M04H" rel="noopener noreferrer" target="_blank">accusing the tech giant of having an illegal monopoly</a> on search functionality and its associated advertising.</p><p>"We have reached a point of maturity or sophistication and usage where it's time for the government to ask questions about what information is being collected and how it's being used," said Karen North, a former official at the White House Office of Science and Technology Policy during the Clinton administration. "Knowing there is so much information that's been collected, the question becomes how is it being used to manipulate people and is there the kind of transparency demanded by regulation of traditional media."</p>
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Here are the latest updates on news affecting Los Angeles' startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for more.
Today:
- Apple Podcast Veteran Steve Wilson Joins Startup QCODE
- Amazon in Exclusive Talks to Buy Podcast Studio Wondery, Wall Street Journal Reports
- Pharrell Launches Black Ambition Incubator
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Apple Podcast Veteran Joins Startup QCODE
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDUzNTQzMC9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYzNDUzMzYyNH0.pOGV2lL0qOJQDiWw1T5i4SqsGfaL54hLWED6_5Mf1Ww/img.png?width=980" id="8d68d" class="rm-shortcode" data-rm-shortcode-id="f2a47797239f360473fead53338231d4" data-rm-shortcode-name="rebelmouse-image" alt="qcode" />www.sonos.com <p>QCODE, a Los Angeles podcast startup run by a former Creative Artists Agency talent agent, snagged longtime Apple podcast executive Steve Wilson. The 15-year veteran will become QCODE's chief strategy officer.</p> <p>QCODE, which <a href="https://dot.la/sonos-podcast-qcode-2648395035.html" target="_self">last month raised $6.4 million</a> in a Series A round led by Sono, is positioning itself as a funnel for Hollywood. </p> <p>Founded by Rob Herting, a former agent who had represented largely writers and filmmakers, the company has produced eight shows since 2019. Several have been auctioned for film and television, including "Dirty Diana." Amazon picked up the 6-part erotic drama for a TV series.</p>Wilson, who most recently ran marketing for Apple Podcasts, brings insights from the behemoth platform as the industry sees revenues soar. Advertising brought in near $1 billion this year, according to Interactive Advertising Bureau's podcast report prepared by PwC.Amazon Reportedly in Exclusive Talks to Buy Wondery
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDc5NDU5OS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0MjgyMDY3NX0.BHKSXjwra-gGsFEa7lXCCCMJXWV5cYxrZqhddj3-uds/img.jpg?width=980" id="d401d" class="rm-shortcode" data-rm-shortcode-id="c9c9eee1f9adc4c1d5edeca1af986a84" data-rm-shortcode-name="rebelmouse-image" alt="Hernan Lopez" />Hernan Lopez started Wondery with the belief that in-depth, narrative audio stories were poised to bloom.<p>Amazon is in "exclusive talks" to buy podcast company Wondery and subsume its 30 hit shows and over 8 million monthly listeners into its empire, the Wall Street Journal reported on Wednesday.</p> <p>The talks reportedly value Wondery above $300 million, in line with previous estimates from analysts, when Apple and Sony were said to have expressed interest.</p> <p>Wondery has produced dozens of original series including "Dr. Death" and "Business Wars," and has 19 shows currently in development to become television series. </p> <p>The company does not publicly disclose its financials, but chief executive Hernan Lopez has previously said the company is profitable. About three-quarters of Wondery's revenue comes from advertising, but Lopez has said the company's revenue share from content licensing is growing (Wondery owns the intellectual property for all of its originals). It also launched a subscription service, Wondery Plus, in June and is currently looking to expand its international footprint. </p> <p>Wondery, the West Hollywood-based company with the largest audience of any independent podcast producer, has been the subject of swirling rumors that several suitors are interested in acquiring it.</p> <p>After a pandemic-induced decline that struck much of the podcasting industry, Wondery's audience has surpassed its pre-COVID levels. Its Q3 revenue was about double year-on-year and its Q4 performance has been strong, Lopez previously told dot.LA. </p> <p>Podcasting overall now attracts over 100 million monthly listeners, according to Edison Research. The Interactive Advertising Bureau projects podcasting revenues to exceed $1 billion by 2021.</p> <p>That growth has spurred somewhat of an arms race, most evident in Spotify's spending spree, which also has helped that company diversify from its reliance on streaming. Amazon Music is one of Spotify's biggest competitors along with Apple Music, and <a href="https://www.wsj.com/articles/amazon-music-joins-podcasting-fray-11600261201?mod=article_inline" target="_blank" rel="noopener noreferrer">recently expanded into podcasts as well</a>. </p> <p>Acquiring Wondery would give Amazon more content to slide into Amazon Music, a scaled-down version of which is free for Amazon Prime subscribers. Combining that content with its Alexa smart speaker also could empower the company to capture more eyes and ears in the increasingly competitive attention economy. </p> <p>The talks are reportedly ongoing and no deal has been confirmed. </p>Pharrell Launches Black Ambition Incubator
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzU3NDU2OS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1OTc3NTM1OH0.qD_LA3B7rgAasJRgiMNup8vVcLMlbeEh_6aU__xF7hU/img.jpg?width=980" id="796a8" class="rm-shortcode" data-rm-shortcode-id="0246af1c20fc54b8835cf2a32abde021" data-rm-shortcode-name="rebelmouse-image" alt="Pharrell Williams" />Pharrell Williams Launches Black Ambition Incubator<p>Rapper and producer Pharrell Williams released "Entrepreneur" with Jay-Z earlier this summer, a song that became an anthem for Black ambition. Now, Williams is launching an incubator to put money behind his message.</p><p>Called <a href="https://blackambitionprize.com/" target="_blank">Black Ambition</a>, the nonprofit aims to invest in Black and Latino startup founders, and it's beginning by creating two prize competitions set to close in July 2021. The effort backed by Adidas, Chanel and philanthropic organizations including The Rockefeller Foundation and the Chan Zuckerberg Foundation. Silicon Valley startup investor Ron Conway and Buzzfeed founder and CEO Jonah Peretti also contributed. </p><hr><p>The first competition will award up to $250,000 to current students or recent alumni from a historically Black college developing or in the seed stage of a company. Smaller prizes will be awarded to at least nine additional teams. </p><p>The second competition, called the Black Ambition Prize, will give $1 million in seed money to an early-stage company focused on tech, design, healthcare or consumer products and services. Another nine teams will get smaller prizes. Finalists will be connected with and mentored by a network venture capitalists and angel investors. </p><p>"Because we don't have enough of the market share, our kids end up having issues with disproportionate access to healthcare, disproportionate access to education and as a culture, we have disproportionate access as it pertains to legislation and representation," Williams said in a video announcing the news.</p><p>Williams was inspired to pool talent from historically Black colleges and universities and build a new pipeline of investment and resources to young people. </p><p>"We want to lift our HBCUs. They lift so many of us. They deserve to be in lights," Williams said. "We think it's high time that we own more companies.</p><p>In August, Williams published a piece in Time Magazine that accompanied a cover spread on "<a href="https://time.com/collection/the-new-american-revolution/" target="_blank">The New American Revolution</a>." It coincided with his release of "Entrepreneur," the song and music video he produced with Jay-Z as <a href="https://dot.la/pharrell-williams-entrepreneur-2647055995.html" target="_self">a tribute to Black founders across the nation</a>. </p><p>"Recent events and tragedies have illustrated the always existent stark divisions in the American experience, and while entrepreneurship has long been a tenet of the American dream, marginalized people have faced long-standing barriers to success," Williams said in a statement. </p>From Your Site Articles
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