Shoppers at The Fresh Market can now ask about products featured in a livestream, long after a session is over.
Two of the most-talked-about emerging technologies in commerce are coming together in a new offering from video-based platform Firework.
On Tuesday, Firework is releasing the beta version of a live shopping platform assisted by generative AI. Firework already has live shopping capabilities. Now it is adding a generative AI tool it developed in-house to the mix.
Launched with The Fresh Market, the tool will enable customers to use the in-video chat tool of a livestream long after the initial session is over. Shoppers will be able to ask questions about the products or services featured in a livestream. Then, the AI engine will provide responses in real time.
For instance, a customer may ask “What is the recipe for the salad being made in this video?” Then, the generative AI tool will provide the ingredients.
"By asking questions related to the products or services featured in the video, users will receive accurate, real-time responses that are contextually relevant to the livestream," said Firework President Jerry Luk.
For the Fresh Market, the tool complements a slate of offerings bridging content and commerce that recently expanded to include a retail media network built around shoppable livestreams. The grocer is adding these capabilities to its own website.
"The Fresh Market is a long-standing partner of ours and the perfect fit to pilot our AI-assisted live shopping capabilities. Cooking demos are a prime example of a case where viewers will have questions – whether it’s about the recipe, drink pairings, food origins…and the list goes on," said Luk. "Now, they can get prompt, friendly, and personalized answers to their burning queries even if they watch the livestream video after it has concluded."
Firework is taking an in-house approach to building generative AI tools. While plenty of businesses are beginning to leverage engines like OpenAI’s ChatGPT, Firework’s tool was developed by the dedicated team of AI and machine learning professionals under the banner of Firework AI Labs. The team has previously created AI-enabled content creation and editing tools.
In particular, generative AI was a good fit with live shopping due to its ability to extend the experience, Luk said.
"Generative AI has the potential to revolutionize ecommerce by enhancing personalization and engagement, which are essential for establishing meaningful connections with customers. Firework's live shopping and interactive video features have already demonstrated significant success in this regard. We chose to leverage generative AI to further extend the benefits of these features," Luk said. "The appeal of live shopping lies in the ability for customers to have their questions answered during a livestream. However, once the event concludes, much of the interactivity is lost. Our generative AI-powered livestreams address this issue by providing an 'always-on' experience, allowing shoppers to enjoy personalized, real-time interactions and support whenever they choose to watch."
To build the product, Firework's team built a customized learned language model that incorporates product information, livestream content, user comments and responses from hosts and moderators. This enables the AI engine to provide "contextually relevant, accurate, and on-brand answers," Luk said.
"Firework's proprietary AI engine, powered by a large language model (LLM), can understand and respond in various languages and can be tailored to reflect each brand's unique voice," Luk said. "This ensures a personalized and context-driven experience for the user, making it feel as though they are interacting with a host or expert who is well-versed in the content of the livestream."
Firework’s platform is built around offering shoppable video, including livestreaming, that is embedded directly in the shopping journey. Often, this means it appears on a retailer’s website, rather than on a social media platform. Through generative AI, the company sees a pathway to extend a live shopping session, and the value of the content that it creates.
"Firework's proprietary AI engine, powered by a large language model (LLM), can understand and respond in various languages and can be tailored to reflect each brand's unique voice," Luk said. "This ensures a personalized and context-driven experience for the user, making it feel as though they are interacting with a host or expert who is well-versed in the content of the livestream."
The new tool arrives as more ecommerce companies are developing uses for generative AI, from product images to computer customization to product discovery. The integration with live shopping offers a reminder that multiple technologies can come together to advance the shopping experience. Innovation doesn’t have to happen in a vacuum. Perhaps, a new technology can even be the right ingredient to help another further mature. Given that live shopping remains nascent in the U.S., this seems primed as a test case.
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.
