Live streaming is significantly impacting eCommerce in Southeast Asia. While the trend began a few years ago, its success and potential have singled it out as a viable method for promoting goods and services. Due to COVID-19, companies ramped up their live commerce approach, where they could make selling more interactive through streamed TV mini-shows, product demonstrations, use of influencers, celebrity video endorsements, and more. 

According to a Milieu Insight study, live streaming in Southeast Asia has taken off, with nearly five in ten consumers tuning in to watch a sales program at least once a week. Vietnamese viewers led the way in the region, with 65% saying they saw the streamed videos, followed by audiences from Thailand and Malaysia, with 57% and 48%, respectively.

We examine the potential of Olympic eSports and Southeast Asia’s position in the world of professional eSports

The shows provide links or QR Codes to proceed to a checkout and complete the item purchase. Others have customer competitions to win the product or service on the show. Additionally, some may incorporate live concerts or disc jockey (DJ) in-person mixes to entertain viewers.

State of eCommerce without live streams

Southeast Asia’s eCommerce segment covers multiple industries, and projections indicate it will reach USD 116.50 billion in 2024 and USD 191.20 billion by 2029. The sector typically operates through websites, apps, and platforms that display offers for purchase. It employs various promotional strategies, including search engine optimization (SEO) and content marketing.

The region also benefits from increased mobile penetration, recent digital transformation, extensive innovation, and regulatory changes for the retail market. 

Live streaming takes promotion and selling to the next level. eCommerce platforms need video equipment, quality communication devices, analytics tools, and internet connectivity to stream well. 

However, it is faced with challenges like access to technology, limited internet connectivity in some areas, and delivery and logistical problems due to infrastructure shortcomings. Privacy concerns exist, as well as the risks of clicking malicious links. Furthermore, livestream hosts may need more training to be effective.

Impact of live streaming on ASEAN

Despite the challenges, the Milieu Insights report showed that Southeast Asians watched live streams due to promotions and discounts, to shop online, to learn about a product, to ask questions, and to discover new items. 

Here are several ways live streaming is impacting the region:

Convenient shopping: eCommerce startups like Reebonz, a Singapore-based online shopping site, can sell their products by posting daily live videos on social media. Viewers can then book their preferred items and place orders through the comment box. The development of super apps means customers can access multiple services in-app. For example, Shopee and Lazada’s online shopping platforms have integrated services for payments and delivery and can include vouchers and other promotions.

Customer engagement: Live streams let users ask questions and receive responses in real time. This helps build brand loyalty and improve user experience, and both buyers and sellers can benefit from the feedback provided. The seller can also provide live demonstrations so that customers can see the product or service in action, thereby influencing the purchase decision.  

Increased market competition: Since companies can create value-adding content through a live stream rather than a sales video or expensive ads, they can connect with audiences at a deeper level at a low price. That means small companies can compete with larger ones by building connections and trust with buyers despite having smaller budgets.

Extensive reach: Finally, running a live stream connects local and global audiences, meaning it has extensive reach. Sellers share original content and can upsell customers in real time by pointing out products or solutions that may complement the items sold. Other customers seeing products selling fast may be influenced to purchase a product out of fear of missing out (FOMO).

What’s next? 

As long as ASEAN remains active in online shopping, there will be a place for streaming videos in one capacity or another. It will just get easier as new technologies emerge or evolve. For example, artificial intelligence (AI) helped Lazada’s platform to make over 50% of sales in 2021 by analysing clicks and prompting customers to complete the buyer’s journey by purchasing an item.

Thus, live streaming will shape eCommerce in Southeast Asia in the coming years through innovation. Evolving technologies like virtual reality (VR) and 3D immersion will enhance user experience and enable sellers to communicate their brand values and mission while meeting customers’ needs.

Companies will also have to search for livestream hosts with charisma, who are likeable, and who have adequate people skills to promote or sell products and services.

Ultimately, live streaming in Southeast Asia can reach a high level not only to sell but also to communicate issues of climate change and boost the environment.