Livestreaming has become the talk of the town in recent years, but what is livestream commerce exactly?
This innovative approach combines live video with online shopping, creating a dynamic, interactive experience that’s reshaping Indonesia's e-commerce landscape. Here, shopping is about more than transactions—it’s a collective experience that emphasizes social connections and real-time engagement. As consumers increasingly seek immersive, interactive formats, both local and international brands are turning to livestream selling platforms like TikTok and Shopee to meet this demand1.
Indonesia, the world’s largest TikTok user base2, sees millions spending hours daily on the platform, often encountering livestream selling that encourages spontaneous purchases. This trend is especially popular among Generation Z and Millennials, who drive e-commerce growth through frequent online interactions and a strong preference for authentic content.
The rise of livestream commerce in Indonesia
Indonesia's e-commerce sector has witnessed significant growth, with livestream commerce at the forefront of this expansion. Driven by increased smartphone and internet penetration, this country’s online retail market could reach US$120 billion by 2025. Livestream commerce offers a unique blend of entertainment and shopping, which resonates well with Indonesian consumers who prioritize social engagement in their shopping experiences. According to Momentum Works, in 2022, Indonesia accounted for 42% of TikTok’s regional gross merchandise value (GMV), indicating the platform’s dominance in Indonesia's e-commerce landscape3.
Platforms like TikTok and Shopee also enable real-time interactions between sellers and viewers, enhancing consumer trust, online shopping trends and creating a sense of community. While TikTok's swipe-based engagement encourages unplanned purchases, Shopee Live provides a more deliberate shopping experience with in-depth product demonstrations.
Such approaches underscore the distinct shopping habits emerging among Indonesian consumers, who are more likely to buy after viewing engaging, authentic content from influencers or Key Opinion Leaders (KOLs). A study by Jakpat also found that 83% of Indonesians have participated in online live shopping, with conversion rates up to three times greater than those on traditional e-commerce platforms
Key features and benefits of livestream commerce