Live commerce has boomed in China over the last few years, and it’s now estimated that around 75 per cent of the population use it. The industry is racing towards a trillion-dollar valuation, with some analysts expecting it to get there by 2035.
The West has been slower to adopt live commerce, but it’s now starting to have a bigger influence. If the USA and UK markets follow the same trajectory as China, live commerce could represent a huge retail investment opportunity.
Live Streaming Has Started to Have a Bigger Influence in the West
Live streaming has been around in the West for a while, but its use has been most apparent in other sectors outside of ecommerce. The online casino industry was one of the earliest places to see it in action, and now live casino UK games are easy to find. These span from classic table games hosted by experienced croupiers to modern game show-inspired options like Hi Lo Western and Deal or No Deal: The Big Draw.
Social media has been one of the other key places to see the rise of live streaming, with Facebook playing a huge part in helping the technology go mainstream. On YouTube, many content creators have found live streaming to be an excellent way to connect with their audiences, and it has become commonplace for people to host live Q&A sessions.
Now, live streaming is also playing a bigger role in the Western ecommerce market, with Amazon Live having launched in 2019. TikTok Shop has been important too, with more than 200,000 small and medium-sized businesses in the UK now selling through this service.
China’s Live Shopping Model Highlights Growth Potential
If the Western ecommerce market is to mirror China’s over the last few years, it could represent a strong investment opportunity. Live shopping is now heavily integrated into the Eastern country’s ecommerce industry, with various platforms such as Taobao Live and Douyin hosting broadcasts with influencers and celebrities.
Even though the Chinese market is exciting and shows the growth potential of live commerce, investors should also be cautious. It’s not guaranteed that the Western market will perfectly replicate the Chinese one. Indeed, Chinese culture may have allowed celebrity selling to become normal, but it’s something that may not have as much success in the West.
How to Gain Exposure to Live Commerce
For people considering investing in live commerce and trying to benefit from this trend, there’s not a sole ticker that gives direct exposure. It would arguably be better to get indirect exposure to the growth of the industry by picking up shares in large ecommerce businesses. Social media or video platforms that offer live streaming could be good options to consider as well.
The ecommerce market is continuing to boom, and it will keep evolving alongside new technology. Live streaming is likely to have a huge impact on the industry in the West, but it may not follow the Chinese model precisely.
