What's Happening?
Livestream shopping has transitioned from a marketing experiment to a significant sales channel in Southeast Asia. Brands are investing in dedicated teams, creator partnerships, and technology to transform content into a long-term sales business. This
shift is driven by a change in consumer behavior, with shoppers increasingly discovering products through short-form videos and livestreams. In 2024, livestream shopping generated approximately $18 billion in gross merchandise value, accounting for about 14% of platform sales. By 2025, content-driven shopping, including video commerce, represented 32% of platform sales, up from 20% the previous year. The integration of payments and checkout functions has made livestreaming commercially viable, allowing key opinion leaders to earn commissions based on sales.
Why It's Important?
The evolution of livestream shopping reflects a broader shift in consumer behavior from search-led to discovery-led shopping. This change is significant for brands and retailers as it requires a new approach to consumer engagement and sales strategies. The integration of AI in this sector is expected to further enhance the shopping experience by complementing human hosts with AI-generated content. This trend could lead to increased sales and customer engagement, making it a critical area for investment and innovation in the retail industry. Companies that successfully adapt to this new model stand to gain a competitive advantage in the rapidly evolving digital marketplace.
What's Next?
As livestream shopping continues to grow, brands are likely to invest more in building capabilities across content production, creator partnerships, and livestream operations. The convergence of livestreaming, short-form video, and conventional e-commerce is expected to continue over the next three to five years. Companies will need to focus on execution and building a sustainable business model to capitalize on this trend. The role of AI in this sector is also expected to expand, potentially leading to more interactive and personalized shopping experiences.
