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Why you need to incorporate live commerce to ride the eCommerce boom

Why you need to incorporate live commerce to ride the eCommerce boom

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Open any social media app today and you will be instantly immersed in a shopping ecosystem. From videos of unboxings and hauls to the unending virality of ‘#tiktokmademebuyit’, the intersection of social media and commerce has never been stronger. Behind this content are social media influencers, whose huge followings and addictive content have reshaped how consumers shop.

In Southeast Asia, influencer marketing has quickly taken over a space once dominated by traditional advertising. Insights from the latest influencer report reveal that in 2024, influencers generated approximately US$15 billion in net merchandise value across platforms such as YouTube, Facebook, Instagram, and TikTok. The region is home to its own influencer superstars, including Blackpink’s Lisa, who hails from Thailand, and Indonesian celebrity couple Raffi Ahmad and Nagita Slavina, boasting 105 million and 76 million Instagram followers, respectively.

While social platforms may have their own conventional marketing offerings, influencers have something more valuable: the power of authentic peer-to-peer recommendations delivered through entertaining content that surpasses conventional ads' ability to generate social reach.

According to the earlier mentioned report, 82% of respondents have purchased a product or service based on an influencer's recommendation, marking a 3% increase from 2023. Influencers and content creators have a trusted authority and authentic connection that traditional ads cannot match, making them key drivers of consumer purchase decisions across Southeast Asia.

As the eCommerce market evolves, brands are facing new challenges. Soaring advertising costs, tightened budgets, ad fatigue and declining trust in both digital ads and those on traditional media make standing out in a crowded marketplace increasingly tough.

This is not to say eCommerce is struggling. In fact, the opposite is true with the market volume projected to reach US$191.20 billion by 2029. However, in this rapidly growing landscape, and especially in key markets such as Indonesia, Thailand and the Philippines – collectively worth 70% of the SEA eCommerce market– brands need more effective ways to engage consumers, and this is where influencers come into play.

If you haven't already, here's why you need to wake up to the realities of Live shopping

As we look toward 2025, the influencer market is set to explode into a US$24 billion industry, showcasing a staggering growth of over 1300% in just eight years. While the concept of selling through influencers isn't new, the way consumers shop on social media has transformed dramatically. This evolution has led to the meteoric rise of live commerce, particularly in Southeast Asia, where platforms such as TikTok Shop, Shopee, and Facebook are leading the charge.

In the past year alone, approximately 88% of regional consumers have engaged with live commerce content, turning shopping into an interactive experience reminiscent of the QVC shows that captivated earlier generations. Today’s younger consumers relish the thrill of real-time, immersive shopping, where they can connect directly with brands and influencers in a way that feels personal and engaging. Unlike traditional digital advertising, which often feels passive, live shopping transforms the buying process into an engaging adventure, offering a seamless path to purchase.

The influence of these creators extends far beyond just shopping; it plays a pivotal role in how consumers discover and engage with online subscription services and travel options. In Southeast Asia, nearly 90% of consumers are interacting with various online subscription services, with the media and entertainment sector leading the way at 77%. A striking 69% of consumers report discovering new services through influencer recommendations, which underscores the power of word-of-mouth in this digital age. For instance, platforms such as Netflix thrive on the buzz generated by local celebrities and content creators, where social media conversations and reviews can significantly boost sign-ups. Influencers wield the ability to offer exclusive deals that create an irresistible allure and a sense of belonging for targeted audiences.

The travel sector mirrors this trend, with 85% of Southeast Asian consumers engaging with travel-related content, and 59% stating they are influenced by YouTube travel vloggers and local influencers when planning trips. In Thailand and Singapore, over 60% of flight and accommodation bookings are influenced by these recommendations. Specific influencer types, such as YouTube vloggers in Thailand and Instagram personalities in Indonesia, significantly shape consumer choices, emphasising the need for brands to adopt diverse influencer strategies.

To fully harness these trends, brands should integrate live commerce into their marketing strategies, featuring influencers to boost engagement. Consumers seek good deals, authentic reviews, and entertainment, with securing bargains as the primary driver. For brands adopting live sales, offering exclusive deals, genuine insights, and fostering meaningful consumer connections are key to driving consistent sales and building loyalty.

A re-direction

Over recent years, social media platforms have made major investments in connecting creators directly to eCommerce platforms while deploying the necessary calls-to-actions. This direct-to-consumer (DTC) eCommerce model is expected to grow, with over half of brands planning substantial investment in this medium in response to rising marketplace fees.

Social media influencers benefit from such tools through increased brand sponsorship and a direct link for consumers to use their affiliate links. To improve or maintain their margins, brands can also explore influencer partnerships and customer referral marketing, as well as other strategies to be profitable while staying ahead in the eCommerce landscape.

Influencers are and will remain an essential part of the marketing mix. If brands want to be seen in 2025, especially among younger demographics, influencer marketing is a non-negotiable. For brands that want to be more than just seen, using influencers in combination with affiliates and customer referral programs can unlock new revenue streams and achieve significant growth.

With SEA’s high internet penetration, mobile usage and rapidly growing middle class, there has been no better time to reposition your brand for the future.

This article was written by Antoine Gross, general manager, SEA and India, impact.com. 

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