Why India lags in online live commerce
India, June 26 -- When AnyLive, the AI-powered platform which supports live commerce online through virtual hosts, enabled mineral water brand Evian to run round-the-clock live streams using AI avatars along with human hosts, it increased the brand's live shopping sales by more than three times. Except that this happened in Thailand since the tech company which operates AnyLive, is big in Asian markets such as Japan, Korea, Vietnam, Indonesia and Philippines.
Aditya Aima, co-MD, India and MENA region at AnyMind Group, said India was behind other Asian markets in live commerce, that is, selling products via live videos. "In India, platforms have not driven that behavioural change or made it easier for consumers to shop through a live link," Aima said.
Though it is banned in India, Chinese app TikTok has made live selling big on its platform in major markets like the US, the UK, France and countries like Indonesia, Malaysia, Singapore, Thailand etc. It merges live entertainment feeds with built-in e-commerce so that consumers do not exit the livestream to shop and pay. Brands partner TikTok content creators to host their live streams. Kalyan Kumar, co-founder of influencer marketing-led tech platform KlugKlug, said, India is nowhere near China in live commerce where it is almost 20% of total e-commerce. "In India, we're in low single digits. We need to stop copy-pasting the China playbook and build our own."
Though the live commerce trend here is underwhelming, it's seen some traction in fashion and beauty, Kumar said. For instance, on Amazon Live, beauty and personal care brands are active with livestreams. The activity intensifies during Amazon's sales events where brands use live streams for new launches, product demonstrations and flash sales.
Earlier this month, the Flipkart Group also launched affiliate partnership with Meta to power India's creator commerce, enabling them to tag products from Flipkart and Myntra directly in Facebook posts and Reels. Shoppers see a product in a creator's post or Reel, tap the product tag, and complete the purchase on Flipkart or Myntra. While creators earn a commission on sales generated from their posts, brands and sellers reach high-intent audiences.
KlugKlug's Kumar, however, cautions: "Let's not confuse having a feature with having an ecosystem. Most platform-native live selling efforts are solutions looking for a problem. The audiences aren't there yet; they're on Instagram, they're on YouTube, they didn't get the memo that Amazon wants them to watch a livestream," he said.
Live commerce conversion rate (where a sale is made) is higher at 10-30% than traditional e-commerce where it is 2-3%. "But adoption of any new tech requires ubiquity. You need to be ubiquitously available to be able to form a habit," said Aditya Aima. "India still spends on the offline market or traditional media like TV, print and outdoor. Total ad spends on digital may have surpassed traditional media spends, but marketers need to be bolder in what they do," he said.
Kumar added that traditional influencer marketing creates curiosity and consideration and live commerce converts it in real time. "But if you think you can take an influencer whose audience trusts them and suddenly turn them into a home shopping anchor rattling off product features, you'll kill both the trust and the sale. Live commerce works best when it doesn't pretend to be influencing in the traditional sense," he said.
There are other roadblocks too. "Internet infrastructure outside the metros is still inconsistent. Payment friction is higher than it should be. And there aren't enough trained creator-sellers who can hold an audience and close a sale," he said.
But neither of the two experts writes off live commerce in India just yet. For starters, India's massive online shopper base at nearly 300 million is next only to China's. "Also, a lot of marketing money is moving into creator commerce and brands are learning from their global
egional teams and localising the playbook," said Aima.
"The potential is enormous. I'd say live commerce could account for 10 to 15% of Indian e-commerce within five years, and that's being cautious," said Kumar....
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