The concept of live commerce, which involves live-streaming video content to showcase and sell products, has been taking the global e-commerce industry by storm. It combines the convenience of online shopping with the engagement and entertainment of traditional shopping experiences.
Live commerce allows sellers/influencers to interact with their customers in real-time, answer their questions, and provide demonstrations of their products, leading to higher conversion rates and customer loyalty.
The live commerce market is rapidly growing and is expected to reach a value of $710 billion in China by 2023. The market is driven by the increasing adoption of smartphones and social media platforms, which provide a convenient way for consumers to access live commerce content.
In China, live commerce has become a multi-billion-dollar industry, with giants like Taobao, JD.com and Pinduoduo dominating the market. The trend has also been rapidly growing in Southeast Asia, with companies such as Lazada and Shopee incorporating live commerce into their platforms.
But what about Pakistan? How has the market for live commerce been developing in this region? Enter Daraz Live Commerce.
In September 2021, Daraz launched its own live commerce platform, Daraz Live, with the objective of becoming the largest live commerce platform in Pakistan. And it seems they are well on their way to achieving this goal.
Daraz Live Commerce has seen tremendous growth since its launch, with the platform scaling up its live stream events from 100 per month to over 2500 per month in just 8 months. The platform has also worked with top brands inluding Unilever, L’Oreal and Reckitt, generating impressive case studies like L’Oreal Professional’s 2x uplift in orders and GMV after their live sessions.
But it’s not just the big brands that are taking notice – Daraz Live has also seen a surge in KOLs (Key Opinion Leaders) and SMEs (Small and Medium Enterprises) using the platform to promote their products and connect with customers. This has enabled Daraz to scale live commerce into a multi-million-dollar business.
What sets Daraz Live apart from other live commerce platforms in the region is its ability to cater to a diverse range of categories, from FMCG and Health & Beauty, to Fashion and Electronics. While live commerce is typically associated with impulse buying, Daraz Live has seen great results for high-value items, with live commerce acting as a tool to build purchase consideration for top electronic products.
In recent years, we have seen many case studies from across the globe showcasing the power of live commerce. For instance, Taobao, the Chinese e-commerce giant, is known for its impressive KOLs, who have generated crazy sales by selling products on the platform. One such example is the ‘Lipstick King’, who is famous for his live-streaming makeup tutorials and has reportedly sold over 15,000 lipsticks in a single day.
Similarly, Lazada and Shopee, two leading e-commerce platforms in Southeast Asia, have also been experimenting with live commerce. In 2020, Lazada’s 11.11 sale generated a whopping $420 million in gross merchandise volume (GMV) in just 24 hours. Shopee, on the other hand, launched its own live-streaming platform called Shopee Live, which has become a key driver of sales for the platform.
Daraz Live has been able to grow its ecosystem by partnering with over 400 sellers and brands and attracting more than 500 KOLs. The platform has also seen significant order growth, with a 2.5x increase during the 11.11 campaign and a 7x increase during the 12.12 campaign compared to the previous year.
Daraz Live has also amassed 3.3 billion minutes of watch time in 2022, a testament to its growing popularity and success.
According to Muhammad Ammar Hassan, Chief Marketing Officer, Daraz Pakistan, “Daraz Live is setting new milestones in the live commerce eco-system. The platform is not only helping brands and KOLs reach a wider audience, but it is also transforming the way customers shop and interact. Through this vertical, we have been able to bring a huge change in Pakistan’s e-commerce landscape and a driving force for the future of live commerce in the region.”
Daraz Live is not the only player in the region, with other regional live commerce players like Roposo in India building their own live commerce ecosystem and achieving similar levels of success. With the rise of live commerce, we are seeing a shift towards more immersive and engaging shopping experiences.
For businesses looking to adapt to the ever-changing e-commerce landscape, live commerce may be the key to unlocking new levels of growth and customer engagement.
Ali Rizvi, Head of Affiliate Influencers and Live Commerce at Daraz Pakistan, stated, “We have been able to scale exponentially in the last year, and our focus is on building optimizations to drive up value for brands through KOLs.”
The rise of live commerce has led to a shift towards more immersive and engaging shopping experiences, making it a potentially valuable tool for businesses looking to adapt to the ever-changing e-commerce landscape.