19/02/2025

Live Commerce: The Next Stage for E-commerce 　

Online shopping has undeniable advantages over traditional offline shopping, such as convenience and speed. However, it cannot provide the real interaction and try-on experience that offline shopping offers. The rise of live commerce has effectively addressed these shortcomings, becoming a bridge between entertainment and online shopping. It is widely welcomed and loved by consumers, with immense potential to change the current landscape and become the new norm in China’s e-commerce.

What is Live Commerce?

Live commerce combines online shopping with live streaming to showcase products and answer consumer questions in real-time. It offers a new type of shopping guide service. First launched by Taobao Live in 2016, live commerce gained rapid momentum after 2019, as the pandemic and lockdowns led more people to shift from offline to online shopping. According to Statista, by 2023, the number of live stream viewers in China reached 765 million, with shopping-related content being the most popular. The market size grew to nearly 5 trillion yuan, a significant jump from 420 billion yuan in 2019, and is expected to surge to 8.16 trillion yuan by 2026.

The Possibilities Brought by Live Commerce

  1. Intuitive Product Display

    Unlike traditional e-commerce platforms that rely on images and text, live commerce offers a more direct way to view products. Viewers can see details, understand how to use them, and even experience them through the host’s personal demonstration. This creates a more authentic shopping experience, reduces uncertainties, and encourages purchases.

  2. Interaction and Emotional Connection

    Viewers can ask questions and receive personalised shopping advice in real time, enhancing their shopping experience. Through these interactions, the host establishes an emotional bond, making the experience more personal and enjoyable. This connection fosters loyalty, with many viewers returning to purchase products recommended by the host.

What the Brand Should Do?

  1. Leverage Multichannel Partnerships to Boost Sales

    By expanding live commerce across multiple platforms (such as Douyin, Taobao Live, Xiaohongshu, etc.), brands can broaden their audience and maximise exposure. Partnering with influencers or celebrities, who have extensive fan bases, allows for quick viewer engagement, enhancing both the credibility and appeal of the product. This strategy not only drives sales but also strengthens the brand’s visibility and appeal, particularly among younger consumers.

  2. Manage the Entire Process to Maximize Live Stream Impact

    Brands should begin by selecting hosts or partners whose image and style align with the brand’s identity. During the live stream, it’s essential for hosts to focus on showcasing the product’s key selling points—especially those that resonate with consumers, such as practicality, uniqueness, or value for money. Post-live commerce support is equally important since excellent after-sales service can boost customer satisfaction and foster long-term brand loyalty.

  3. Ensure Product Quality to Build Trust

    Consumer trust and loyalty stem from the quality of a brand’s products. Therefore, brands must prioritise quality, winning over customers with exceptional products and a sincere approach. Each product featured in live commerce should be meticulously selected and tested. By offering products that meet consumer expectations in both appearance and functionality, brands can reduce return rates, strengthen their image, and drive long-term sales growth.

Final Thoughts

Live commerce presents exciting opportunities for brands to engage consumers in innovative ways and expand their reach. While there are challenges, such as staying ahead of trends and ensuring quality, brands that embrace this model have the potential to strengthen their connection with audiences and drive meaningful growth. The key lies in exploring, adapting, and making the most of this evolving landscape.

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