The notion of live commerce, which incorporates live-streaming video material to exhibit and sell products, has taken the worldwide e-commerce business by storm. It blends the convenience of online purchasing with the involvement and enjoyment of conventional shopping experiences.
Live commerce enables sellers/influencers to communicate with their consumers in real time, answering their questions and providing product demonstrations, resulting in increased conversion rates and client loyalty.
The live commerce business in China is fast expanding and is predicted to reach $710 billion by 2023. The industry is being driven by the increased use of smartphones and social media platforms, which give customers with a convenient way to access live commerce content.
In China, live commerce has grown to be a multibillion dollar industry, with Taobao, JD.com, and Pinduoduo leading the field. With companies like Lazada and Shopee incorporating it into their platforms, live commerce is also growing in popularity in Southeast Asia.
What about Pakistan, though? How has the market for live commerce in this region evolved? Daraz Live Commerce is an example.
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Daraz launched its own live commerce platform, Daraz Live, in September 2021, with the goal of being the largest live commerce platform in Pakistan. And it looks that they are making good progress in achieving this objective.
Daraz Live Commerce has grown rapidly since its inception, with the company increasing its monthly live stream events from 100 to over 2500 in just eight months. The platform has also worked with big brands such as Unilever, L’Oreal, and Reckitt, producing outstanding case studies such as L’Oreal Professional’s 2x increase in orders and GMV following live sessions.
But it’s not only the major brands that are taking note; Daraz Live has witnessed an increase in KOLs (Key Opinion Leaders) and SMEs (Small and Medium Businesses) using the platform to promote their products and communicate with customers. This has allowed Daraz to grow live commerce into a multimillion-dollar industry.
What distinguishes Daraz Live from other live commerce platforms in the region is its capacity to cater to a wide range of sectors, including FMCG, Health & Beauty, Fashion, and Electronics. While live commerce is often connected with impulse purchases, Daraz Live has shown excellent results for high-value items, with live commerce serving as a tool to increase purchasing consideration for top electronic products.
In recent years, we have seen numerous case studies from throughout the world demonstrating the effectiveness of live trade. Taobao, the Chinese e-commerce behemoth, is well-known for its amazing KOLs, who have created massive sales by selling things on the marketplace. The ‘Lipstick King,’ for example, is well-known for his live-streaming cosmetic instructions and has reportedly sold over 15,000 lipsticks in a single day.
Similarly, Lazada and Shopee, two of Southeast Asia’s major e-commerce sites, have been experimenting with live commerce. Lazada’s 11.11 sale in 2020 produced $420 million in gross merchandise volume (GMV) in under 24 hours. The company’s revenues have been significantly boosted since Shopee Live, its own live-streaming platform, was introduced.
Daraz Live has been able to expand its ecosystem by collaborating with over 400 merchants and brands and attracting over 500 key opinion leaders (KOLs). Order growth on the platform has also been strong, with a 2.5x increase during the 11.11 campaign and a 7x increase during the 12.12 campaign compared to the prior year.
Daraz Live has also accumulated 3.3 billion minutes of watch time in 2022, demonstrating its expanding popularity and success.
“Daraz Live is setting new milestones in the live commerce eco-system,” says Muhammad Ammar Hassan, Chief Marketing Officer at Daraz Pakistan. Not only is the platform assisting companies and KOLs in reaching a larger audience, but it is also changing the way customers shop and engage. We have been able to bring about a significant transformation in Pakistan’s e-commerce market, as well as a driving force for the future of live commerce in the region, through this sector.”
Several regional live commerce players, such as Roposo in India, have built their own live commerce ecosystems and have found success on par with Daraz Live. With the growth of live commerce, we are witnessing a trend towards more immersive and interesting shopping experiences.
Live commerce could be the key to unlocking new levels of development and customer engagement for firms wanting to adapt to the rapidly shifting e-commerce industry.
According to Daraz Pakistan’s Ali Rizvi, Head of Affiliate Influencers and Live Commerce, “We have been able to scale dramatically in the last year, and our focus is on building optimisations to drive up value for brands through KOLs.”
Live commerce is becoming more popular as consumers are moving towards more immersive and interesting buying experiences, which makes it a potentially useful tool for companies trying to keep up with the rapidly evolving e-commerce industry.