Live commerce, otherwise known as livestream shopping, is growing into a major sales channel in Singapore, with the market set to generate up to $1.3 billion in sales this year, according to new research by DBS.
This represents about 40 percent of the local social commerce market, which is itself anticipated to hit $3.2 billion in 2025, DBS said in a statement on Monday.
The research found that an ongoing shift in buying habits – the result of people spending more time on social media than browsing traditional websites – is driving a growth in social commerce at a compound annual growth rate (CAGR) of 16 percent.
By 2030, social commerce sales are expected to double to $6.6 billion, of which live commerce is expected to account for more than a third.
Compared to traditional e-commerce, live selling offers consumers a more engaging and entertaining experience by enabling interaction with merchants in real-time with the convenience of shopping on-the-go via their smartphones.
Sellers also benefit from demonstrating their products to large audiences directly, answering questions and offering real-time promotions.
In addition, viewers are more likely to buy a product, with research showing that conversion rates for livestream selling are up to ten times higher than traditional e-commerce, driven by faster decisions and higher trust.
With live selling, shoppers can discover, interact with, and buy a product all within one platform, without having to leave an app, or visit a separate website.
They can also see a real person use and review a product live builds credibility more effectively than static ads or posts.
Looking ahead, generative artificial intelligence (Gen AI) is expected to further boost the adoption of live commerce, said the research.
For example, real-time translation tools can help sellers overcome language barriers and reach audiences in a wider range of markets, while Gen AI hosts could run round-the-clock livestreams.
Such applications are already being piloted in markets like China, it noted.
“Live commerce offers a simple, low-cost way to reach not just local customers, but regional ones too – without needing to set up a physical presence overseas,” said Chen Ze Ling, Group Head of Corporate and SME Banking, DBS.
Meanwhile, Sachin Mittal, Head of Technology Research, DBS, said live commerce is no longer experimental.
“It is becoming part of the everyday online shopping experience, especially for mobile-first consumers. While still at an early stage in Singapore, the potential is significant,
“What makes live selling so powerful is its ability to close the gap between discovery and purchase almost instantly,” he added.