Live-streaming Commerce in SEA, and How To Create An Edge Using Data

Social commerce in Asia Pacific is expected to grow by 38.2% on an annual basis, due to the increase in digitisation and online shopping. The micro-entrepreneurs have stood out from big brands with their way of communicating and selling with online customers.

As a Vietnamese, the concept of social commerce is no news, as you would find one livestreams every 5 minutes of scrolling. Popular platforms of selling include Tiktok, Facebook, and Zalo. In the list there is also the Phillippines, China, Indonesia, Thailand, Malaysia, and Singapore.

Now you might be wondering what does this selling process look like? Different from the traditional way with big brands you see on TV, social commerce takes a more personal approach with interactions between buyer and seller. This could be through livestreams and live chats.

How does the e-commerce industry looks like in Southeast Asia countries?

Source: Statista

Indonesia shows the highest growth among the other SEA countries, with $59 billion in 2022 and expected to accelerate to $95 billion in 2025. Tokopedia, an Indonesian e-commerce company, launched a live-streaming platform Tokopedia Play to catch up with the trend.

Components of live-streaming

• Customers can see the product at the moment before deciding the purchase

• Small businesses can reach a wider audience

• The buyer can interact with the seller immediately (e.g. commenting)

The Case of China

China, the home to live-stream applications, with popular platforms such as Taobao, Kuaishou, and Douyin.

What makes live-stream shopping different than the traditional way?

• A wide pool of audience, promoting for low-priced products on short videos. This engages the users to opt for cheaper alternatives rather than buying directly from brands

• Products are always sold on promotion. Top KOLs like Li Jiaqi and Viya sells their product 30-60% discount compared to Tmall prices.

• The "hunger marketing strategy" promotes impulsive purchases. The sense of urgency during these lives engages the audience to order the products instantly, as the seller continually pushes the discount on the products

According to EDGE, Southeast Asia's share of e-commerce is 20% worldwide. Phillippines and Indonesia accounts for 25.9% and 23%.

Finding your competitive edge

It is important for businesses to continue finding ways to innovate their ways through the market and stand out from the rest. One element that no one should ignore is data.

1. Audience Data - once you've collected the basic informations, you can start to group your customer and put them into demographics. This can then progress to customer segmentation, which is a critical stage to better your service and easier personalization.

2. Behaviour Data - it is worth noting that behavioural is not just about what your customers buy, but also what they decided to "leave behind", like abandoned shopping carts and cancelled orders. It goes beyond the basic information, helping you to understand their wants and needs, boosting the relationship.

3. Engagement Data - in e-commerce, this is the emotional value exchange between you and the customer. Therefore, it also involves making the customer experience smooth and seamless. The higher the engagement the higher the loyalty.

4. Attitudinal Data - this helps you to understand the effect you have on your customers. Their feelings, opinions, and motivations towards the brand. Are they satisfied? Which part of the service/product could be improve? Consider attitudinal data as a learning curve, to always strive for the better when trying to enhancing the brand's service.