Live Commerce Market Global Growth Trends and Innovations

Live commerce, the integration of live streaming and e-commerce, has rapidly evolved into a transformative force in global retail. By blending entertainment with shopping, it engages audiences in real time while boosting sales efficiency. In 2025, the market is witnessing strong momentum, led by China’s rapid adoption, global cross-border trade opportunities, and the entry of artificial intelligence (AI) to enhance customer service. However, challenges remain in Western markets, where adoption lags behind Asia.

Live Commerce: China’s Growth Engine and TikTok’s Global Test

China’s live commerce industry continues to expand rapidly, standing in sharp contrast to trends in global markets. During the first half of the year, the country’s online retail sales surpassed ¥7.4 trillion ($1.03 trillion), marking an 8.5 percent increase. This growth was driven in part by the rise of live commerce and instant retail, with a recent report from the Cyberspace Administration identifying live commerce as a “key engine of consumption and export.”

Cross-Border E-commerce and Overseas Streamers Benefit from China’s Supply Chain

Beyond its domestic market, China’s efficient supply chain is also powering growth overseas, with foreign streamers increasingly taking advantage of direct product shipments from China. In Southeast Asia, for example, customers purchasing through TikTok live streams can receive their orders within just five to six days. Meanwhile, cross-border e-commerce in China is surging, as evidenced by the registration of 5,080 new companies in early 2025—nearly double the figure from the same period in 2024.

TikTok Shop Expands Globally but Faces Mixed Reception

Since the beginning of the year, TikTok Shop has entered new markets including Mexico, Brazil, and Japan, capitalizing on its “short video plus live streaming” model that merges entertainment with shopping to attract global consumers. However, adoption of live commerce remains slow in the US and Europe, and Japan has shown a more cautious response. Although TikTok Shop described its late-June launch in Japan as “very impressive,” the company withheld details on its first-month gross merchandise value (GMV), while other indicators suggest the outcome may be less encouraging.

Key Highlights:

• China’s Strong Growth: Online retail sales hit ¥7.4 trillion ($1.03 trillion) in H1, with live commerce fueling consumption and exports.

• Global Supply Chain Advantage: Efficient cross-border logistics enable quick deliveries, while new e-commerce registrations in China nearly doubled in early 2025.

• TikTok’s Expansion Challenges: Despite launches in Mexico, Brazil, and Japan, live commerce adoption lags in the US, Europe, and faces mixed reception in Japan.

CJ Onstyle Launches AI Chatbot AiON to Transform Live Commerce Support

CJ ENM Co.’s commerce platform, CJ Onstyle, has introduced AiON, an artificial intelligence (AI)-powered chatbot to enhance customer service in live commerce. Developed in partnership with Amazon Web Services’ (AWS) Generative AI Innovation Center, the chatbot is built to provide fast and precise responses to complex product-related inquiries that are often challenging to resolve in real time.

AiON Chatbot Enhances Live Commerce Customer Service

AiON has been designed to handle five key categories of inquiries: broadcasting, delivery, products, certification, and orders. By processing both image- and text-based product details, considering conversation context, identifying customer interests and sentiment, and accounting for real-time factors such as inventory, the chatbot significantly improves customer interactions. According to CJ Onstyle, the introduction of AiON is expected to double the platform’s response rate to customer inquiries.

Key Highlights:

• AI-Powered Assistance: CJ Onstyle, in collaboration with AWS’ Generative AI Innovation Center, introduced AiON to deliver fast and accurate responses to complex customer inquiries.

• Comprehensive Coverage: The chatbot addresses five main inquiry categories—broadcasting, delivery, products, certification, and orders—while factoring in context, sentiment, and real-time variables.

• Boost in Efficiency: CJ Onstyle expects AiON to double its response rate, enhancing overall customer interaction and satisfaction in live commerce.

Comparative: Key Highlights

Impact of Live Commerce on the Global Market

Positive Impacts Driving Market Expansion

Live commerce has created a new growth pathway for retail, blending entertainment with transactions and reshaping customer expectations. Its adoption in Asia, particularly China, highlights its transformative potential for both businesses and consumers.

Key Positive Impacts:

• Boost to Retail Growth: China’s online retail sales surged to ¥7.4 trillion ($1.03 trillion) in H1 2025, an 8.5% growth, largely supported by live commerce.

• Cross-Border Efficiency: Streamlined logistics enable customers in Southeast Asia to receive TikTok live commerce orders within five to six days, strengthening consumer trust in international e-commerce.

• Business Confidence: Registration of 5,080 new cross-border e-commerce companies in early 2025, nearly double from 2024, signals strong investor optimism.

• Innovation in Service: AI solutions such as CJ Onstyle’s AiON chatbot enhance customer service, with the platform expecting to double its response rate through real-time, AI-powered assistance.

Conclusion: The positive outcomes emphasize how live commerce enhances economic activity, fosters innovation, and accelerates global trade efficiency.

Negative Impacts and Market Challenges

Despite its success in Asia, live commerce faces adoption hurdles in other parts of the world, particularly in Western regions where consumer behaviors and cultural differences slow growth.

Key Negative Impacts:

• Uneven Adoption: While TikTok Shop has expanded into Mexico, Brazil, and Japan, adoption remains slow in the US and Europe, reflecting regional skepticism toward live commerce.

• Mixed Market Reception: In Japan, despite being labeled “very impressive,” TikTok did not disclose GMV figures, suggesting weaker-than-expected performance in its launch phase.

• Cultural Barriers: Western consumers are more accustomed to traditional e-commerce platforms, limiting the entertainment-driven shopping model’s immediate appeal.

• Dependence on Logistics: Although China’s supply chain is efficient, any disruptions could significantly impact the reliability of cross-border live commerce operations.

Conclusion: These challenges highlight the need for tailored strategies, cultural adaptation, and stronger transparency from platforms to build consumer trust outside Asia.

Next Steps: Actionable Takeaways

1. Businesses entering live commerce should analyze China’s model of blending retail with entertainment for scalable strategies.

2. Cross-border retailers can leverage China’s logistics infrastructure to ensure competitive delivery times.

3. Brands in Western markets must adapt strategies to overcome cultural barriers and slower consumer adoption.

4. Technology integration such as AI chatbots can significantly enhance customer satisfaction and operational efficiency.

5. Investors should monitor growth in cross-border company registrations as a signal of long-term industry confidence.

Final Conclusion:

Live commerce is reshaping global retail by merging entertainment and shopping, with China leading the way in adoption and innovation. While cross-border trade and AI-driven customer support drive growth, slower uptake in Western markets highlights the need for localized strategies. With continued innovation and global expansion, live commerce is set to play a pivotal role in the future of retail.