In recent years, the integration of live streaming e-commerce and traditional e-commerce platforms has become a defining trend in China's digital economy. Companies like Alibaba, JD.com, and ByteDance (the parent company of TikTok and Douyin) have been at the forefront of this evolution, blending content-driven shopping experiences with conventional online retail. As the domestic market matures, Chinese live streaming e-commerce giants are now setting their sights on international markets, leveraging their expertise to tap into the vast potential of global e-commerce. This article explores the fusion of live streaming and traditional e-commerce in China, the global expansion of Chinese players, and the market insights that underscore the immense opportunities in this space.

The Fusion of Livestream Shopping and Traditional E-commerce in China

The convergence of live streaming e-commerce and traditional "shelf-based" e-commerce has revolutionized the retail landscape in China. In late 2023, Alibaba took a significant step by merging its Taobao Live and "Guangguang" (a short video platform) into a unified content e-commerce division. This move marked a new phase in the development of content-driven e-commerce, where live streaming and short videos play a central role in engaging consumers. Similarly, JD.com announced a massive investment of 1 billion RMB in cash and another 1 billion RMB in traffic subsidies to bolster its content consumption market in 2024. Meanwhile, Douyin, primarily known for its live streaming e-commerce, has been aggressively expanding its shelf-based e-commerce capabilities. During the 2024 "Double 11" shopping festival, Douyin's shelf-based e-commerce accounted for 43% of its total GMV (Gross Merchandise Volume).

Industry experts believe that the integration of live streaming and traditional e-commerce offers a superior model compared to content platforms relying solely on live streaming. Established e-commerce platforms benefit from stricter governance, stronger consumer trust, and better shopping experiences, which enhance the synergy between live streaming and traditional retail. As this trend continues, live streaming e-commerce on traditional platforms is expected to outperform that on content-centric platforms.

Artificial intelligence (AI) is also playing a pivotal role in this integration. The depth of AI application is seen as a critical factor in determining the growth rate of e-commerce businesses. AI-powered tools, such as virtual live streamers and automated marketing solutions, are helping merchants reduce costs and improve efficiency. Analysts predict that AI-driven live streaming could account for 20% of total live streaming e-commerce sales by 2025.

Chinese Live Streaming E-commerce Goes Global

With the domestic market nearing saturation, Chinese live streaming e-commerce companies are increasingly looking overseas for growth opportunities. The global e-commerce market, particularly in regions like Southeast Asia, North America, and Europe, presents a lucrative frontier for these companies. For instance, during the 2024 holiday season (November 1 to December 31), online sales in the United States reached $241 billion, an 8.4% increase year-on-year, according to Adobe Analytics.

Southeast Asia

Southeast Asia is one of the most promising markets for Chinese live streaming e-commerce companies. The region's young population, rapid digital adoption, and growing middle class make it an ideal target. Reports indicate that Southeast Asia's internet economy is projected to reach $330 billion by 2025, with e-commerce accounting for a significant share. The region's digital payment systems, such as GrabPay and GoPay, are also evolving, further facilitating online transactions.

Chinese companies like Jiaogepengyou (Make Friends) have been quick to capitalize on this potential. Jiaogepengyou has established teams in Thailand and Malaysia, providing local brands with operational support and helping Chinese brands promote their products in these regions. While the company has not yet launched its own live streaming channels in Southeast Asia, it is actively exploring opportunities in Western markets, where higher average order values and untapped consumer demand present significant potential.

North America and Europe

In Western markets, live streaming e-commerce is still in its early stages but shows strong growth potential. Analysts predict that the U.S. live streaming e-commerce market could grow to $25 billion by 2023, driven by platforms like Amazon Live and Facebook Shops. Similarly, in Europe, the live streaming e-commerce market is gaining traction, with countries like the UK and Germany leading the way.

Yaowang Technology, another major Chinese player, made its debut in the international live streaming e-commerce market in 2024. In June 2024, Yaowang's team collaborated with UK-based influencers to conduct a 12-hour live streaming session, generating $833,000 in GMV and over 50,000 orders—a record-breaking achievement in the UK market. Yaowang has also expanded its shelf-based e-commerce and commercial marketing efforts, partnering with popular sellers on global platforms like Amazon and Temu.


What are the Opportunities and Challenges?

Southeast Asia: A Hotbed for Growth

Southeast Asia's e-commerce market is expected to reach $234 billion by 2025, with an annual growth rate of 18%. The region's young, tech-savvy population and increasing internet penetration make it a fertile ground for live streaming e-commerce. Platforms like Shopee and Lazada have already laid the groundwork for digital shopping, creating a seamless environment for live streaming integration.


Western Markets: High Potential, High Value but Complex

In Western markets, live streaming e-commerce is still in its infancy, but the potential is immense. For example, the U.S. market has seen single live streaming sessions achieve GMV records exceeding $2 million. However, cultural differences and consumer behavior pose challenges. To succeed overseas in the coming years, Chinese live streaming e-commerce companies need to move beyond their domestic playbook and explore business models tailored to local consumers. For example, unique products like visual ear cleaners or car audio systems have gained traction in Western markets, even with smaller live streaming audiences.

The Road Ahead for Live-Commerce

Currently, the global live streaming e-commerce market is still in its early stages, reminiscent of Douyin's early days in China before 2020. Most overseas markets still rely on short video-based sales, and a stable live streaming e-commerce model has yet to fully emerge. Nevertheless, Chinese companies are actively helping local brands and influencers enhance their live streaming capabilities, fostering the growth of this nascent industry.

In terms of monetization, companies like Jiaogepengyou primarily rely on a commission-based model in overseas markets, earning revenue by providing live streaming services to brands and influencers. While this model currently represents a small portion of the company's overall business, the vast potential of international markets makes it a key area for future growth.