The Rise of Live Commerce in the Sports Industry

Live Commerce in Sports: Key Insights 

• Revenue Potential: Major sporting events like the Super Bowl and FIFA World Cup highlight the significant revenue potential of live commerce, driven by high participation from sports fans who regularly watch sports on streaming or online channels.

• Immediate Demand: The potential of live commerce to generate immediate consumer demand and significant sales spikes is underscored by NBA star James Harden's success in selling 10,000 bottles of wine in 14 seconds during a live stream in China.

• Fan Engagement: By offering exclusive content, live trading card "breaks," and limited-edition merchandise, Fanatics Live demonstrates how sports brands can leverage live commerce apps to boost fan engagement and drive sales, setting a new industry standard.

• Strategic Growth: Substantial revenue growth and increased fan involvement can be driven by live commerce, as exemplified by Nike and Unilever through their use of live streaming and targeted advertising during major sports events.

In recent years, the way the sports industry engages with fans and generates revenue has changed significantly. A key driver of this change has been the integration of live commerce, an innovative mix of live streaming and eCommerce. 

This emerging trend has not only redefined the fan experience, but also opened up new, lucrative revenue streams for sports brands and events. For this reason, the sports industry's growing involvement in live commerce is worth dissecting. 

What is Live Commerce? 

Live commerce is the fusion of live streaming and eCommerce, allowing consumers to purchase products in real time while watching live video content. 

This interactive shopping experience combines the immediacy and engagement of live broadcasts with the convenience of online shopping, creating a dynamic platform for brands to connect with their audience, drive sales, and elevate customer loyalty.

Impact of Sporting Events in Live Commerce 

Major sporting events like the FIFA World Cup and Super Bowl have demonstrated the immense potential of live commerce. During the 2023 Super Bowl, for instance, live commerce initiatives contributed to a spike in online sales of team merchandise, with the NFL's official online store recording US$17 million in sales on game day alone. 

In addition, brands like Fanatics hosted live streams where fans could purchase exclusive Super Bowl merchandise in real time, creating a sense of urgency and excitement but also capitalized on the heightened emotions of fans during the event. 

Temu also ran extensive promotions during the Super Bowl, including US$15 million in giveaways and multiple ads. Although not strictly live commerce, Temu’s strategy of combining high-profile advertising with immediate purchasing options through their app resulted in a significant increase in consumer engagement and sales. 

During the 2021 FIFA World Cup finals, the potential for sales was enormous as viewers watched the game on various devices, showcasing the power of live commerce to reach a global audience. This trend is expected to continue, with more sports brands and events incorporating live commerce into their strategies. 

Live Commerce in Sports: Case Studies 

In order to better understand the impact and implications of live commerce in the sports world, let’s have a look at specific examples. A prime example of live commerce's potential in the sports world is NBA star James Harden’s recent venture into the Chinese market. 

James Harden’s Live Commerce Success Story 

During a live stream with local influencer Xiao Yang, the NBA star James Harden sold 10,000 bottles of his J-Harden wine in just 14 seconds, generating US$300,000. This astonishing feat highlights the power of live commerce in creating immediate consumer demand and significant sales spikes.

This is just one example of the booming live commerce market in China. The market's revenue performance has been nothing short of astounding:

• The market stood at US$57 billion in 2019, right before the boost brought by the pandemic.

• Displaying a 195% YoY increase, the market was worth US$170 billion by the end of 2020. 

• Continuing its growth, live streaming eCommerce market size in China reached US$676 billion last year. 

• Anticipated to surpass US$800 billion this year, forecasts show that the market will be worth over US$1 trillion some time in 2026. 

While the West is still catching up, the success stories from China provide a roadmap for sports teams and athletes looking to explore this space. 

Fanatics Live: Usage of Sports Apps in Live Commerce 

While James Harden’s success story exemplifies individual triumphs, companies like Fanatics are taking live commerce to new heights on a larger scale.

The major player in sports merchandise has launched a live commerce app, Fanatics Live, which allows fans to purchase sports collectibles and merchandise while watching exclusive content.

The app features live trading card "breaks," limited-edition merchandise, and on-location streams with high-profile athletes, showing how sports brands can leverage live commerce to increase fan engagement and drive sales. 

Combining content, community, and commerce, Fanatics Live creates a trusted environment for fans, setting a new standard for live commerce in sports. 

Nike’s Blueprint for Success 

Global giants like Nike have also embraced live commerce, showcasing its effectiveness in driving sales and fan engagement. With its strong brand influence, the brand has effectively utilized live commerce in its business strategy. 

By integrating live commerce strategies during major NBA games, for instance, Nike allows viewers to interact with streams featuring athletes wearing the latest Nike gear. This real-time purchasing option capitalizes on the heightened emotions of sports fans, potentially leading to a significant increase in sales. 

Nike’s success is driven by its focus on high-profile sportswear, leveraging collaborations with top athletes to improve its appeal. The company’s ability to create a seamless purchasing experience during live events illustrates the potential for substantial revenue growth.

With online net sales of US$14.2 billion projected for 2024, Nike’s live commerce strategy serves as a blueprint for other sports brands looking to harness the power of live commerce. 

Unilever’s Strategic Approach 

Beyond apparel giants, other sectors like FMCG (fast-moving consumer goods) are also recognizing the potential of live commerce. Being one of these companies, Unilever has moved beyond traditional linear TV to more precise, personalized experiences. 

By leveraging retail data and innovative ad tech, Unilever targets specific audiences during live sports events, driving digital commerce growth and high engagement for in-the-moment purchasing. For example, Unilever partnered with a media network to pilot a program targeting college football fans with personalized ads for their preferred brands, enabling purchases directly from their couches.

Unilever's investments in streaming and live media partnerships are substantial, reflecting a commitment to reaching a rapidly growing audience. The company has more than tripled its sports marketing commitments since 2020, with activations around major events like March Madness, Thursday Night Football, and the National Women’s Soccer League.

Sports in Live Commerce: Final Thoughts 

The integration of live commerce into the sports industry marks a new era of fan engagement and revenue generation. From James Harden’s remarkable sales feat in China to Fanatics’ innovative app and Nike’s strategic game-time promotions, live commerce is transforming how sports brands interact with their audiences. 

As more platforms start to adopt live shopping capabilities, the potential for live commerce in sports will only grow. Brands that embrace this trend can expect to see significant benefits in terms of fan engagement, sales, and overall brand loyalty. The sports industry is poised for a future where live commerce plays a central role in its monetization strategy.

Sources: SportsPro, TechCrunch, CGT, Muvi, Commerce Dynamics, Forbes, CNN, 27sem, Nielsen Sports, YouTube, ECDB