Live Commerce: How China Leads and the World Follows

Industry Insights from Next Move Strategy Consulting

Live commerce mixes live video, real-time interaction, and e-commerce to shake up retail. It creates an engaging shopping experience that boosts conversions, sparks impulse buys, and gives instant feedback. By blending entertainment, interaction, and shopping, it's become a game changer for brands looking to drive sales and build deeper customer ties.

Live commerce isn’t entirely new—it started with traditional TV shopping channels. But in recent years, it has rapidly evolved from a novel marketing tool into a central part of the shopping experience, especially in China.

Explosive Growth of Livestreaming E-Commerce in China

Livestreaming e-commerce in China has witnessed explosive growth, surging from $57.12 billion (420 billion yuan) in 2019 to nearly $682.5 billion (5 trillion yuan) in 2023. This upward trend shows no signs of slowing, with the market expected to reach $1.11 trillion (8.16 trillion yuan) by 2026.

Reflecting its rising dominance, livestreaming's share of China’s online shopping GMV grew from 17.9% in 2021 to 31.9% in 2023—nearly doubling in just two years.

Key Factors Driving Live Commerce Success In China

• Commerce meets social media: China has nailed the blend of e-commerce and social platforms. Apps like Douyin, Kuaishou, and Taobao Live let users jump from watching to buying in seconds. This smooth, click-and-buy setup is a big reason live commerce took off fast.

• Influencers drive the show: In China, influencers aren’t just selling—they’re trusted voices. Their followers see them as experts, not just promoters. This trust and sense of community keep viewers coming back and buying more.

• Real-time interaction is key: The real magic of live commerce is the back-and-forth. Shoppers can ask questions, react in real time, and shape the stream. It’s personal and engaging—something regular e-commerce can’t match.

• Gen Z is all in: China’s digital-native Gen Z grew up on social media, so livestream shopping feels natural. They’re the ones pushing the trend and making video commerce part of everyday online life.

Live Commerce Faces Global Challenges in U.S. and Europe

Even as shopping habits shift, many U.S. consumers still see live commerce as something to try—not a core way to shop. Trust in influencers is growing, but it hasn’t reached the deep influence they hold in China, where followers regularly buy what streamers recommend.

In Europe, the challenge is even bigger. Adoption has been slower thanks to cultural differences and a more cautious take on online retail. Big brands like Zara, H&M, and Sephora are testing live shopping on Instagram and apps. TikTok and Amazon are rolling out live features in select countries, seeing early wins in fashion and beauty.

But Europe’s market is tough to scale—different languages, cultures, and shopping habits make expansion tricky. Plus, Europeans tend to be more skeptical of influencer-led buying compared to Chinese shoppers.

U.S. and Europe Chase China’s Lead in Live Commerce

Platforms in the U.S. and Europe are taking cues from China’s playbook, blending livestreams with shopping carts for a smoother buying experience. The U.S. is further along than Europe in getting consumers onboard, but it’s still far from China’s live commerce dominance.

Both markets are testing how live commerce can bring more interactive, engaging shopping to the table. As habits shift, the potential keeps growing. As Amber Venz Box, co-founder of LTK, puts it: “Live shopping on social media is not just a trend; it’s becoming a significant part of how consumers engage with brands.”

Bottom line—it’s got real potential to become a powerful, high-conversion sales channel.

Source: https://www.forbes.com/ 

Prepared By: Next Move Strategy Consulting