Darko Pavic, CEO of Fiscal Solutions, Retail Tech Expert with 25+ Years of Experience, Innovator in Global Retail and Technology.
Live commerce, a dynamic blend of live video, real-time interaction and e-commerce, has revolutionized retail. It is transforming this landscape by offering a highly engaging shopping experience that dramatically boosts conversion rates. With its unique blend of higher engagement, impulse buying triggers and real-time feedback, live commerce has become a game changer for retailers. It seamlessly combines entertainment, interaction and shopping to drive sales and foster stronger customer connections.
Live commerce is not a new concept—it has long existed as dedicated TV shopping channels. However, the trend as we know it today has gained massive momentum. Over the past decade, this trend has evolved from an innovative marketing tactic into a core component of the Chinese consumer experience.
In 2023, livestreaming e-commerce generated nearly $682.5 billion (5 trillion yuan) in sales, a meteoric rise from $57.12 billion (420 billion yuan) in 2019. This growth trajectory is set to continue, with projections suggesting a market size of $1.11 trillion (8.16 trillion yuan) by 2026.
The proportion of livestreaming e-commerce in China’s online shopping gross merchandise value (GMV) also highlights this shift, growing from 17.9% in 2021 to 31.9% in 2023, nearly doubling in just two years.
Key Factors Driving Live Commerce Success In China
1. Deep integration of commerce and social media: China has seemingly perfected the integration between e-commerce and social media. Platforms like Douyin (TikTok in China), Kuaishou and Taobao Live enable users to seamlessly transition from watching livestreams to purchasing products with just a few clicks. This frictionless experience has been instrumental in driving adoption.
2. Fandom culture and influencer power: Chinese consumers’ affinity for influencers and livestreamers has fueled the rise of live commerce. These influencers are not just sellers, they are trusted advisors whose recommendations carry significant weight. Their ability to create a sense of community and trust is a cornerstone of livestreaming success.
3. Interactivity and real-time engagement: Interaction is the heartbeat of live commerce. Viewers can ask questions, provide feedback and even influence the course of live events, creating a personalized shopping experience that traditional e-commerce platforms cannot replicate.
4. Digital-savvy Gen Z demographic: China’s tech-savvy younger generation, accustomed to using social media for entertainment and interactions, has embraced video shopping as a natural extension of their online activities. This demographic plays a pivotal role in shaping the livestreaming e-commerce ecosystem.
What’s more, China’s Double 11 (Singles’ Day) shopping festival in 2024 underscored the growing importance of live commerce. According to Syntun and Value China, livestreaming platform sales reached $452.2 million (3.325 billion yuan), accounting for a significant share of the event’s GMV, with platforms like Douyin, Kuaishou and Taobao Live leading the charge. Additionally, platforms such as Xiaohongshu (Little Red Book) saw exceptional performance, with the number of livestreaming rooms generating over 1 million yuan in sales, growing 8.5 times compared to the previous year. This highlights livestreaming’s role in driving engagement and sales.
Live Shopping Gains Traction In The West
Businessman and author Gary Vaynerchuk recently shared an example of the power of live commerce: “Well, a few weeks ago, in the conference room right next to my office, I sold $150K worth of hoodies, sweatshirts, beanies, and socks in four hours on Whatnot. This, my friends, is the power of live social shopping.”
Retailers in Europe and the U.S. are now catching onto the trend and crafting their own strategies. Platforms such as Instagram, YouTube and Facebook have integrated live shopping features, catering to a younger, social media-savvy audience. Major players like Amazon and Walmart have also embraced live commerce, offering real-time product showcases and direct interactions with consumers.
In 2023, U.S. livestream commerce sales reached an estimated $50 billion. By 2026, these sales are projected to grow by 36%, making up more than 5% of all e-commerce sales in North America.
Challenges To Live Shopping Adoption
While consumer habits are evolving, many U.S. shoppers still view live commerce as an experimental, rather than an essential shopping channel. Though trust in live influencers is increasing, it is not as entrenched as in China, where influencers have significant purchasing power over their followers.
European markets have been slower to adopt live commerce compared to the U.S., due to cultural differences and a more conservative approach to online retail. Brands like Zara, H&M and Sephora have begun experimenting with live shopping events on Instagram and their apps. Amazon and TikTok are introducing live commerce features in select European countries, with early success in the fashion and beauty sectors.
Challenges for live commerce in Europe include fragmented markets, where language, cultural differences and varied consumer behaviors complicate scalability. Additionally, European consumers are more hesitant to engage with influencer-driven commerce compared to their Chinese counterparts.
Final Thoughts
Both U.S. and European platforms are heavily inspired by China’s model, focusing on seamless integration of livestreams and shopping carts. While the U.S. market is ahead in terms of consumer adoption, it still lags behind China’s deeply embedded live commerce culture.
Both regions are exploring how live commerce can offer a more immersive and interactive shopping experience, with growth potential as consumer habits continue to shift. Amber Venz Box, co-founder and president of LTK, sums up the trend: “Live shopping on social media is not just a trend; it’s becoming a significant part of how consumers engage with brands.”
And we can also highlight that it has the potential to become a significant and highly engaging sales channel.
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