In recent years, video commerce has emerged as a powerful force within Southeast Asia’s (SEA) booming e-commerce sector, accounting for an impressive 20% of e-commerce Gross Merchandise Value (GMV). Driven by the region’s tech-savvy consumers, video commerce has transformed traditional online shopping into an interactive experience, blending entertainment with product discovery. This article explores the rise of video commerce in SEA and its impact on the future of e-commerce.

What is Video Commerce?

Video commerce, or v-commerce, refers to the use of video content to engage customers and facilitate online purchases. In SEA, this format has taken multiple forms, from livestream shopping events to short-form videos led by content creators. Unlike traditional e-commerce, where customers browse product pages, video commerce enables real-time interaction, creating a sense of community and engagement that is particularly appealing to younger consumers.

Key Drivers of Video Commerce in SEA

Several factors have contributed to the rapid growth of video commerce in Southeast Asia:

1. High Mobile Penetration and Internet Usage: With a high percentage of mobile users across SEA, consumers are accessing shopping platforms from their phones, making video commerce an accessible and convenient format.

2. Rise of Social Media and Content Creators: Social media platforms such as TikTok, Instagram, and Facebook have created a fertile ground for video commerce. SEA’s content creators and influencers play a crucial role in v-commerce, as they build trust and create authentic connections with their audiences.

3. Preference for Interactive Shopping Experiences: Unlike traditional e-commerce, video commerce allows customers to interact with brands and sellers in real time. Shoppers can ask questions, see products in action, and receive immediate responses, fostering a more engaging and immersive shopping experience.

Livestream Shopping: The Heart of SEA’s Video Commerce

Livestream shopping is the most popular form of video commerce in SEA. From beauty products and fashion items to electronics, livestreams bring products to life, allowing consumers to see how items look, feel, and function. Livestream hosts—often influencers or brand representatives—demonstrate products, answer audience questions, and even offer time-limited discounts, creating a sense of urgency that drives conversions.

Brands and retailers are increasingly partnering with influencers for these livestream events. Influencers not only provide credibility but also help brands reach new audiences, expanding their reach and driving traffic to their online stores. For instance, major e-commerce platforms in SEA have embraced livestream shopping as a core strategy, providing a seamless blend of entertainment and shopping that keeps consumers engaged.

Short-Form Video Content: A New Frontier

While livestreams drive real-time engagement, short-form videos offer a flexible, digestible format that reaches broader audiences. Platforms like TikTok and Instagram have popularized short-form videos, allowing brands to showcase products through creative, bite-sized content that resonates with younger viewers. This format enables brands to reach potential customers who may not actively engage with e-commerce platforms but spend significant time on social media.

Short-form videos also allow brands to experiment with storytelling, incorporating humor, lifestyle integration, and social proof to build an emotional connection with audiences. As SEA’s consumers increasingly seek authenticity, short-form videos offer brands a unique way to connect and engage.

The Future of Video Commerce in SEA

The rise of video commerce is reshaping SEA’s e-commerce landscape, merging shopping with entertainment in ways that resonate with today’s consumers. As video commerce gains momentum, it is expected to drive even more innovation and investment, particularly in AI-driven personalization, interactive content, and immersive experiences.

Looking ahead, video commerce will likely play a central role in SEA’s digital economy, offering brands and retailers powerful tools to engage consumers. Businesses that embrace video commerce and invest in quality content, influencer partnerships, and interactive experiences will be well-positioned to capture the attention of SEA’s growing digital consumer base.

Conclusion

Video commerce represents the next evolution of e-commerce in Southeast Asia. By creating an engaging, interactive shopping experience, it caters to the region’s demand for authenticity and entertainment in online shopping. As video commerce continues to grow, it’s reshaping not only how people shop but also how brands build relationships with their customers in a digital-first world.

Credits:

This article is inspired by insights from the e-Conomy SEA 2024 report, which provides a detailed overview of Southeast Asia’s digital economy trends. Our thanks to the researchers and industry experts whose work has illuminated the rise of video commerce in the region.

The Leap editorial team compiled and adapted this information to bring valuable insights to businesses and industry professionals exploring the evolving e-commerce landscape in Southeast Asia.