The scene has become familiar in China: enthusiastic hosts showcase products in livestreams while engaged viewers flood the comments section, driving sales numbers ever higher. But when we shift our gaze to Southeast Asia—a burgeoning market with over 600 million people and immense e-commerce potential—we find live commerce rising at astonishing speed, projected to reach $19 billion in market size by 2023. For cross-border sellers, is this another golden opportunity or a train that's already left the station?
I. The Southeast Asian Live Commerce Market: Rapid Growth and Untapped Potential
Southeast Asia's e-commerce market has experienced explosive growth in recent years. Bain & Company forecasts the region's e-commerce market will reach $234 billion by 2025. Live commerce, as a vital component, demonstrates particularly impressive momentum. Data from Thailand's online payment gateway Omise reveals the sector's gross merchandise value (GMV) growing at 306% annually, with order volume up 115% year-over-year.
The pandemic served as a significant accelerator for live commerce adoption. With physical retail disrupted, consumers turned to online shopping, embracing live commerce for its interactive and immersive experience. The region's young demographic profile and high internet penetration further create ideal conditions for live commerce expansion.
II. Platform Analysis and Operational Strategies
Three major platforms currently dominate Southeast Asia's live commerce landscape: Lazada, Shopee, and TikTok Shop. Each offers distinct advantages requiring tailored approaches from sellers.
Lazada: Localization Focused, Brand-Centric
As one of Southeast Asia's leading e-commerce platforms, Lazada launched its LazLive streaming service in 2019. The company has established comprehensive live commerce operations, supported by professional teams and extensive experience. During Lazada's 2021 11.11 sales event, LazLive attracted 18 million views with GMV growing 187% year-over-year. This April saw LazLive's GMV increase 45% month-over-month—far outpacing domestic live commerce growth rates.
Operational Recommendations:
- Localized Operations: Adapt strategies to accommodate cultural nuances and consumption habits across Southeast Asian markets.
- Brand Development: Prioritize brand building as Lazada consumers demonstrate strong brand sensitivity.
- Precision Execution: Implement meticulous planning across product selection, pricing, content creation, and audience engagement to stand out in competitive environments.
Shopee: Mobile-First, Social-Driven
Shopee introduced its Shopee Live feature in 2019, capturing market share through its "shop while you watch" experience. The platform recorded 500 million views in its first year, with recent 9.9 sales events exceeding 1 billion views.
Operational Recommendations:
- Mobile Optimization: Prioritize mobile user experience through streamlined storefronts and mobile-friendly content.
- Social Amplification: Leverage social media networks to expand audience reach and participation.
- Community Cultivation: Foster strong viewer relationships through consistent engagement to boost loyalty and repeat purchases.
TikTok Shop: Content-Centric, Traffic Monetization
TikTok Shop has rapidly gained traction through its vast user base and content creation ecosystem. Since launching in Indonesia in February 2021, the platform expanded to Thailand, Vietnam, Malaysia, and the Philippines by April 2022. During recent promotional events, TikTok Shop saw order volume increase 128% with total GMV growing 156% across Southeast Asian markets.
Operational Recommendations:
- Content Excellence: Develop high-quality short videos and live content to capture audience attention.
- Audience Alignment: Tailor products and messaging to resonate with TikTok's predominantly young user base.
- Influencer Collaboration: Partner with platform creators to accelerate brand awareness and sales conversion.
III. Challenges and Opportunities
While Southeast Asia's live commerce market shows tremendous promise, challenges persist. Cultural diversity across markets necessitates localized adaptation. Logistics infrastructure remains underdeveloped, increasing operational costs. Complex payment ecosystems require support for multiple transaction methods.
These challenges simultaneously present opportunities. Localization enables deeper market understanding and improved user experiences. Infrastructure improvements will eventually reduce logistics expenses. Payment diversification meets varied consumer preferences.
IV. Strategic Recommendations
Southeast Asia's live commerce sector remains in high-growth mode, offering substantial potential for cross-border sellers. Success requires thorough market understanding, platform selection aligned with product offerings, and customized operational approaches.
Key recommendations include:
- Conduct comprehensive market research on cultural norms, consumption patterns, and regulatory frameworks
- Select platforms based on product-market fit and target demographics
- Implement market-specific localization strategies
- Enhance production quality across product curation, pricing, presentation, and host performance
- Develop robust audience engagement strategies to foster community and repeat business
- Adopt technological solutions to improve operational efficiency and user experience
The Southeast Asian live commerce market presents both significant opportunities and formidable challenges. Only through meticulous preparation can sellers achieve sustainable success in this dynamic environment.