From China to the world
Although live shopping was already popular in China before the COVID-19 outbreak, pairing entertainment with e-commerce was the magic formula for its take-off during periods of strict confinement. In 2023, China's live-streaming commerce market hit nearly five trillion yuan, a twelvefold rise from before the health crisis. That year, approximately six in ten Chinese online shoppers engaged in live commerce, with forecasts suggesting over 430 million users by 2026.It did not take long for China's success story to pique the interest of retailers and consumers across the globe. While Indonesia and Vietnam show significant social media user engagement in live shopping streams, India and Thailand have also embraced live commerce, nearing China's levels in completed purchases.
Beyond the Asia Pacific region, live shopping is rapidly gaining traction in the United States. Estimates reveal that livestream e-commerce sales in the U.S. reached 50 billion dollars in 2023 and are projected to grow by 36 percent over the next three years. Brazil is at the forefront of Latin America's interest in live commerce, while Europe still lags, mainly using live shopping for fashion inspiration and purchases.
Social shop 'n' stream
Live shopping events can be held across various channels, including dedicated streaming platforms for live commerce, e-commerce websites, or social media platforms. The latter, owing to its intuitive interfaces and extensive user base, has witnessed growing popularity for hosting such events.Globally, Meta's Facebook and Instagram stand out as the most used social networks for purchasing products during live-streaming events. Additionally, alongside Douyin's remarkable success in China, which saw a 40-fold increase in live commerce transaction value between 2019 and 2022, its international counterpart, TikTok, is increasingly focusing on e-commerce. This is evidenced by the integration of TikTok Shop features, enabling direct in-app purchases.
While the accessibility of social networks presents opportunities for the adoption of live commerce, this format does not appeal to everyone. In Italy and Spain, nearly half of the individuals interested in attending live shopping sessions reported refraining from making purchases through these platforms and expressed skepticism towards products endorsed by influencers.
