[W Forum] The Era of Live Commerce Now

Interest in live commerce is heating up. Live commerce is a compound word of live streaming and commerce, referring to a method of selling products by communicating with consumers through real-time broadcasts. Live commerce is similar to TV home shopping, but it is rapidly growing centered on mobile platforms as mobile-based transactions increase.

According to recent reports, live commerce led by Taobao Live and others accounts for more than 10% of China's internet transactions this year and is expected to grow by more than 150%. The live shopping host Li Jiaqi, famous as the so-called 'Lipstick Oppa,' proved his influence by recording sales of hundreds of millions of yuan in just two days, and not only celebrities and Wanghongs but also entrepreneurs like Jack Ma participated in live commerce, attracting attention.

In Korea, various influencers participate in live commerce mainly through social media, and legacy media or offline-based businesses such as TV home shopping and department stores have also entered the mobile market. Products are sold through live broadcasts, and existing e-commerce operators such as open markets and social commerce have introduced live broadcasts for commerce purposes. Live commerce platforms like Grip have emerged, and Naver and Kakao have also strengthened their live commerce functions.

Live commerce can be seen as a type of media commerce, a more comprehensive concept. Media commerce, a compound of media and commerce, emerged from the needs of media seeking new revenue sources and enhancing the immediate effect of advertising content to increase profits, and commerce aiming to increase traffic and purchases by utilizing content, which is the main purpose of media use. Content commerce, which induces purchases using content, is also part of media commerce.

However, the recent remarkable growth of live commerce is closely related to the novel coronavirus disease (COVID-19). Due to COVID-19, the untact trend, which avoids contact with others, has been strengthened, paradoxically leading people to crave communication and experiences similar to face-to-face contact while avoiding physical contact.

Online shopping, which allows product search, ordering, purchasing, and delivery untact, fits the untact trend but does not satisfy the desire for communication. On the other hand, live commerce, which allows consumers to communicate and purchase directly with sellers or influencers through real-time broadcasts, is an alternative that enables safe communication and shopping without physical contact based on platforms. Moreover, it offers the fun of real-time communication that prerecorded and edited videos cannot provide, and opportunities to empathize with other consumers who share similar interests and tastes. Also, the sense of presence and vividness given by real-time broadcasts, along with immediate responses to questions and requests, build trust.

From the seller's perspective, live commerce can be a lifeline to communicate and sell to consumers who avoid face-to-face contact. Also, small and medium-sized merchants can start live commerce with little investment by utilizing various platforms.

It is interesting that while the range of live commerce products in China is expanding to furniture, automobiles, and housing, about 60,000 farmers sell agricultural products through the Taobao Live channel. This suggests that live commerce is not a passing trend but possibly the future form of commerce. The future of live commerce in Korea is intriguing.

Choi Se-jung, Professor, Department of Media and Graduate School, Korea University