Editor | Liu Jingfeng

Live streaming e-commerce is transforming the landscape of the e-commerce industry with its unique charm and powerful influence.

During the recently concluded "Singles' Day" shopping festival, live streaming e-commerce not only demonstrated robust growth domestically but also stood out overseas, particularly in the Southeast Asian market. For instance, TikTok Shop's "11.11 Mega LIVE Showdown" in Malaysia attracted over 5 million active viewers, generating approximately 80,000 live streaming orders in just four hours.

This reflects that live streaming e-commerce is becoming a crucial connection point between brands and consumers.

According to eMarketer data, the Southeast Asian e-commerce industry is experiencing rapid growth, leading globally. Despite having a lower e-commerce penetration rate than the global average, three Southeast Asian countries ranked among the top 10 fastest-growing e-commerce retail sales countries globally in 2023, all exceeding the global average growth rate. Moreover, Southeast Asian consumers are more receptive to the new format of live streaming. A Milieu Insight survey report revealed that 82% of respondents in Southeast Asia have entered live streaming rooms, with 48% visiting at least once a week and 63% having made purchases within these rooms.

A more intuitive data point is the explosive growth of TikTok Shop, primarily focused on live streaming e-commerce, in Southeast Asia. According to Mobius Capital Partners, TikTok Shop's total share of the Southeast Asian e-commerce market reached approximately 13.2% in 2023, up from just 4.4% the previous year. This indicates TikTok Shop's strong market competitiveness and growth momentum in the region. Furthermore, the Mobius Capital Partners' "Southeast Asia E-commerce Report 2024" shows that TikTok Shop's GMV in 2023 was approximately $16.3 billion, nearly a fourfold increase from $4.4 billion in 2022.

With the rise of live streaming e-commerce in Southeast Asia, both local and international brands have seen significant business opportunities, accelerating their layouts. For example, in August 2024, L'Oréal collaborated with TikTok Shop to launch "Super Brand Day" marketing IP events simultaneously in five Southeast Asian countries, inviting numerous influencers to participate, setting a new GMV record, and achieving a win-win situation for brand promotion and sales growth.

A cross-border merchant summarized, "Domestic live streaming e-commerce went through a long development process, evolving from shelf e-commerce to short video marketing and finally to live streaming sales, spanning nearly a decade. However, Southeast Asian e-commerce is expected to achieve this development in half the time, marking an exponential leap."

Obviously, compared to traditional e-commerce models, "live streaming sales" has two advantages: it allows consumers to more intuitively understand product details and brand stories, and it breaks geographical and cognitive barriers, accelerating product circulation.

Rebecca, who has been involved in cross-border e-commerce in Southeast Asia for a long time, stated, "The most popular categories in live streaming e-commerce in Southeast Asia are mainly beauty and skincare, fashion apparel, electronics, and home living." For example, a waterproof eyebrow pencil we represent sold over 10,000 units in October on TikTok Shop's Thai station, ranking among the top sellers in beauty and personal care, which was completely unexpected.

Over the past two to three years, live streaming sales have flourished in Southeast Asia, with head influencers frequently achieving single-session sales exceeding $1 million.

Data released by Ebrun shows that in October, 11 influencers on the Thai station surpassed the $1 million sales mark through live streaming, with @Namkangmobile leading with monthly sales of $5.88 million. Following closely is the phenomenal Thai influencer @Pimrpie, with 11.08 million followers, who achieved $3.41 million in sales in October. The Malaysian station's top influencer is @skintific.my, with 91,000 followers, who achieved sales of $1.21 million.

In the future, live streaming e-commerce will unleash even greater potential in the Southeast Asian consumer market. According to a joint report by Google, Temasek, and Bain, the total digital economy transaction value in Southeast Asia is expected to reach $263 billion in 2024, a year-on-year increase of 15%, with video-based shopping accounting for 20% of total e-commerce transaction value.

These data points highlight the untapped potential of live streaming in the Southeast Asian market, offering a new channel for merchants aiming to quickly enter the region. These merchants span various sub-categories such as luggage, slippers, household chemicals, and consumer electronics.

For example, after entering the Vietnamese market, the luggage brand Coveral Klors gained the favor of TikTok influencer @zhuzhu due to its product design and high-end quality. This collaboration was a perfect match. Boosted by professional influencers, Coveral Klors sold over 800 orders on its first day in Vietnam, exceeding $300,000 in sales in July. Subsequently, Coveral Klors continued its rapid growth, nearly doubling its sales every month from August to October, surpassing internal team expectations.

Seaways, specializing in household chemicals, reached the top 3 in sales among cross-border merchants in Southeast Asia within just three months of launching on TikTok Shop. In the Thai market alone, Seaways' Thai store achieved monthly sales exceeding $200,000 through short video marketing and live streaming sales.

The slipper brand POSEE also achieves an average daily sales volume of 1,000 units in Southeast Asia. The brand's TikTok account has over 649 million hashtag views, with live streaming sales repeatedly hitting new highs, making it one of the most popular slipper brands among Southeast Asian consumers. POSEE revealed that live streaming brings in approximately 80% of potential customer traffic. Currently, POSEE operates eight live streaming rooms daily in Southeast Asia, with each session lasting from 8 to 15 hours.

Evie, the head of the TikTok Shop channel for the consumer electronics brand UGREEN, introduced that through live streaming, UGREEN achieved approximately triple sales during major sales events in Southeast Asia such as 9.9 and 10.10 this year. During the recently concluded Singles' Day sales event, UGREEN's store traffic and order volume increased fivefold.

As merchants and consumers become more engaged, various live streaming formats have emerged. In Thai live streams, a perfect blend of singing, dancing, and rap performances ignites the atmosphere. In Vietnam, scripted live streams offer unique approaches, attracting audiences with carefully choreographed plots. Additionally, TikTok Shop has keenly captured the unique cultural pulse of Southeast Asia, planning a series of marketing activities tailored to local consumer preferences during major festivals like Eid al-Fitr and Songkran. These activities not only enhance local consumers' sense of regional identity and affinity with the platform but also propel user activity to new heights.

In fact, the rapid rise of live streaming e-commerce represented by TikTok Shop in Southeast Asia not only demonstrates the huge potential of this model but also heralds the birth of a diverse ecosystem. In this ecosystem, the platform serves as the core hub, playing a crucial role in construction. Users are active participants, while influencers are important content creators and traffic guides. Service providers offer professional support, and all these forces intertwine and promote each other, jointly outlining an expansive business blueprint.

Over the past few years, user education and the basic logic of live streaming e-commerce in Southeast Asia have been refined, and related supporting facilities such as logistics and payment have gradually developed, enabling live streaming e-commerce to occupy more consumption scenarios.

From a user profile perspective, according to data from the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the median age in Southeast Asia was only 29.6 years in 2023. These consumers value individuality, authenticity, and identity, and are willing to pay for interests, making them significant drivers of e-commerce consumption.

According to Partipost's "2024 Influencer Marketing Report," approximately 75% of Southeast Asian consumers prefer to purchase products recommended by influencers, and 80% of respondents have made at least one purchase decision based on an influencer's endorsement. Meanwhile, the "2024 Global Consumer Trends Whitepaper - Southeast Asia Edition" shows that Southeast Asian consumers place great importance on cost-effectiveness, with marketing factors (promotions) and price factors (high cost-effectiveness/quality) being the primary motivators for purchases.

Source: "2024 Global Consumer Trends Whitepaper - Southeast Asia Edition"

By reversing the marketing and product structure of live streaming sales in Southeast Asia from data reports, it is evident that "high-quality, affordable products + high-quality influencer recommendations" are the keys to rapid breakthroughs.

Taking UGREEN as an example, during this year's Singles' Day, UGREEN chose to collaborate with Vietnamese top influencer @hangkat6668, selling over 1,000 magnetic charging power banks within nine minutes of the live stream. Before selecting @hangkat6668, the UGREEN team conducted long-term tracking and analysis of her fan base. Evie mentioned, "This influencer is a mother of two children, and her followers are mostly young women aged 20-35. The selling point of our magnetic charging power bank is also clear. Firstly, this product is our flagship model this year. Secondly, it comes in six colors, which aligns well with the preferences of local female consumers."

UGREEN Magnetic Charging Power Bank

More importantly, UGREEN has always believed that "a golden plaque or silver plaque is nothing compared to customer word-of-mouth." Therefore, they offer a two-year warranty and have established an after-sales and customer service team in Shenzhen, ensuring a response within 24 hours.

Of course, the amplifying effect of influencers on merchants is also crucial.

@hangkat6668 has over 3 million followers, primarily young women, with high engagement and significantly higher consumption frequency than men. In the initial stages of contact with UGREEN, based on these fan characteristics, multiple rounds of product selection discussions were held with multiple products, ultimately selecting the magnetic charging power bank. After the live stream, @hangkat6668, leveraging her deep understanding of the local market and based on the actual needs of her followers, provided valuable localization suggestions for UGREEN's products. For example, upgrading the current 7.5W fast charging technology to 15W fast charging to provide local consumers with an ultimate experience tailored to their usage habits.

Screenshot of UGREEN's live stream

Currently, influencers are becoming valuable partners for cross-border brands in exploring overseas markets. They do more than simply promote products and drive sales; with in-depth insights and trend judgments about the local market, they can accurately capture local consumers' preferences, consumption habits, and pain points. For cross-border brands, this is like a key to opening the door to overseas markets, helping brands establish a solid presence and continue to deepen their roots in these markets.

Moreover, based on feedback from influencers, merchants have opportunities to optimize and upgrade their products, standing out in fierce competition and building strong and lasting emotional bonds with local consumers, ensuring a smooth journey for brands in their overseas endeavors.

Based on this Singles' Day experience, Evie also believes that leveraging TikTok's huge traffic pool reduces the cost and shortens the link between products and users.

For cross-border merchants, the continuous emergence of anchor groups in Southeast Asia further lowers the barriers to entry. As a cross-border beauty merchant noted, labor costs, venue and equipment expenses, and marketing and promotion costs in Southeast Asia are lower than those in European and American markets. This situation provides a fertile ground for the thriving growth of influencers and merchants, offering more possibilities for exploration, development, and rise.

His advice is that for new entrants or small-to-medium brands venturing overseas, a more stable approach is to start with mid-to-low-tier influencer live streams. Merchants with sufficient inventory can try top-tier influencer live streams to gain greater exposure and sales.

Partipost data shows that TikTok has become the primary channel for influencer marketing in Southeast Asia, with 69% of brands choosing to market on this platform.

Michael Cheng and Rakesh Mani, Co-Heads of PwC's Asia Pacific Consumer Markets practice, mentioned in the "PwC Consumer Insights Survey 2024: Asia Pacific" report that "external research shows that half of consumers regularly shop due to influencer posts." "Compared to six months ago, 30% have higher trust in influencers. This is especially true for Generation Z, whose purchasing power is rapidly growing."

On the other hand, the landscape of live streaming e-commerce is transitioning from the "entertainment anchor model" to a new stage of "quality live streaming." Industry insiders believe that as the industry cycle evolves, purely entertainment-focused anchors will gradually "disappear," and Southeast Asian live streaming e-commerce will move towards a more professional and specialized direction.

Evie agrees with this viewpoint, pointing out that referring to the evolution of domestic live streaming e-commerce, it can be predicted that Southeast Asia will soon transition from a rough growth stage to a refined operation stage. However, the difference lies in the distinct characteristics of Southeast Asian consumers, who are less sensitive to high-end products but are more attracted to down-to-earth items.

She gave an example, due to the gap between overseas production supply chains and commodity supply and domestic conditions, most consumers lack sufficient comparison and experience scenarios after seeing a good product. Therefore, they tend to find various answers from videos and live streams. For example, how to use the product, what are the highlights and pain points of the product, what are the advantages and disadvantages compared to similar products, etc. All of these require influencers to make sufficient preparations in advance and have a certain amount of professional knowledge. In the future, influencers who can explain professional product parameters in an easy-to-understand manner and visually demonstrate product advantages will gain more attention and stimulate purchasing desire.

To lower the threshold for collaboration between businesses and influencers, TikTok Shop actively encourages creators to produce short videos and live stream content suitable for the Southeast Asian market, incorporating local culture, language, and popular elements to enhance content appeal and resonance.

On the other hand, TikTok Shop has built an extremely rich influencer ecosystem in Southeast Asia. Not only are there top influencers leading trends, but mid-tier influencers are also thriving. Although their fan base may not be as large as top influencers, they can communicate with audiences more timely through high interactivity and frequent feedback mechanisms, quickly gaining favor from users. Vertical influencers cover a wide range of categories such as beauty and personal care, sports and outdoors, food and cooking, music and dance, etc. For example, @skintific_id for beauty and @TOPGIAHN for household items. They have deep expertise and influence in their respective verticals, enabling them to precisely reach target audiences and meet the diverse needs of different user groups.

As mentioned in the report "PwC Consumer Insights Survey 2024: Asia Pacific," "Influencers with 1,000 to 100,000 followers are popular in Asia. They provide a cost-effective way to interact with niche audiences through authentic content, building connections and trust." Therefore, even if businesses cannot initially establish cooperation with top influencers, they can start with mid-tier and vertical influencers to achieve mutual beneficial development through precise matching.

Live streaming e-commerce is like a new opportunity for cross-border businesses.

The natural cultural affinity and aesthetic compatibility with China make it easier for cross-border businesses' products and culture to be accepted in the Southeast Asian market. Rich communication forms such as live streaming, short videos, and influencer collaborations can help more efficiently capture consumer demand, attract traffic, and ultimately achieve sales conversions, finding new growth points in a highly competitive market.

Southeast Asia's rich and diverse culture is an inexhaustible source of inspiration for live streaming. Different countries are like colorful paintings, each with their unique cultural imprints and traditional treasures. If businesses can become cultural explorers, deeply exploring the profound connotations of various cultures and skillfully integrating cultural elements into live streams and products, they will surely resonate with consumers.

Currently, both the innovation of diverse play methods in the field of live streaming e-commerce and the substantial release and tilt of platform resources indicate the huge potential of the Southeast Asian market.

The upcoming "Double 12" may become a new opportunity for cross-border businesses to reorder their rankings. With the help of a mature live streaming system, businesses seem to have found a precise compass in the vast business sea, enabling them to anchor a deterministic business path, thereby opening a new chapter of business growth and embracing the dawn of remarkable new growth, blossoming with even more splendid colors on the global business stage.