Since mobile devices have become central to consumers' online shopping activity, opportunities for merchants are ballooning. Many retailers and brands have turned to selling products through live streaming; this new channel has accelerated the growth of the entire e-commerce category across the Asia Pacific region.
Live commerce goes beyond typical online shopping by blending entertainment with instant purchasing. It offers a highly engaging experience and allows customers to buy products in real-time.
This livestreaming trend1 also offers businesses a new channel with enormous scope for creating value, enabling them to make direct-to-consumer economics feasible and the customer experience seamless.
Understanding live commerce
Live commerce is a real-time video streaming event featuring an influencer or key opinion leader (KOL) selling products online through live video on a digital platform. Live commerce brings together video streaming and e-commerce, enabling buyers to watch, interact, and make purchases during the broadcast. According to a recent change in consumer spending habits, 39% of total engagements via e-commerce in Asia happen through live commerce,2 and the rate is accelerating.
Live commerce helps to encourage consumers' online purchase intentions. Its unique nature of having the merchant present in front of the buyer, enabling both parties to interact in real-time, undoubtedly makes the shopping experience effortless and more seamless.
While the adoption of livestream shopping will be led by the Gen Z and millennial generations, these younger cohorts are already known for using their mobile devices for everything. They are projected to account for half of the population globally by 2030 as their spending power will grow, as will their presence. It's critical for your business to find suitable mobile payment solutions and ultimately fuel livestream shopping engagement.
More importantly, consumers aren't just shopping more. They're also spending more on each order. This is particularly the case in Southeast Asia, where the live commerce industry's gross merchandise value (GMV) increased by 306%, while order volume grew 115%. The market size is projected to be $19 billion by 2023—up from $6 billion in 2020.
Why live commerce is worth the investment
The top-selling product categories of live commerce in Asia are 1) lifestyle products, 2) apparel and fashion, and 3) food & drinks. However, more brands and retailers, including big-ticket items, are starting to drive conversions through such channels where potential revenues are now shifting.
Live commerce is no longer seen as a trend but a strategic investment for businesses and large enterprises. Many are interweaving live streaming as part of the organization's digital strategy and making live commerce a pillar of e-commerce to get ahead of the competition.
Besides, it’s a massive opportunity with invaluable data resources for any organization looking to become a data-driven business and grow into regional or even global markets.
Driving new business value with payment solutions
There are some differences between live commerce in Southeast Asia compared to the ecosystem in China.3 While consumers across this region are familiar with the mobile shopping experience on social platforms like Facebook, online merchants still need the invisible players supporting the livestreaming feature to make more live commerce happen. Most would be third-party platforms or technology enablers like SHOPLINE to offer better opportunities for branding, data capturing, engagement and trust retention in the long run.
To leverage online transactions in live commerce, your company also needs to consider a payment system architected for the highest reliability to support transactions during peak processing times.
Ultimately, a strategic partnership with a payment gateway will help your business deliver a new value and build a seamless experience to be on top of the ecosystem.
The new horizon of live commerce
Asia is arguably leading the world when it comes to live commerce. Globally, it is growing exponentially and has already built a large global audience. Future demands in the US market are also expanding from games and esports to livestream shopping.
We can expect to see future expansion into new sectors.4 As live streaming increases its reach, industries such as financial services, engineering, healthcare—and, in time, B2B sectors—are likely to move into the new horizon of live commerce.
If your company wants a payment solution that can fully customize the livestreaming experience. Email email@example.com and let us know how we can help.
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