The role of live commerce in the context of cross-border trade

The global ecommerce market is expected to reach a total of USD6.3 trillion in 2023. It is estimated to grow further over the next few years, a factor indicating that borderless ecommerce is becoming an increasingly important option for retailers. By 2024, 21.2% of total retail sales will happen online.

Live commerce started in 2016, with the launch of Alibaba’s Taobao Live, and has become mainstream in China. It is becoming more and more popular in other important markets, such as the US and Europe. Live commerce in cross-border commerce is marked by technological advancements, enhanced personalisation, global collaborations, and a focus on sustainability.

It is important to realize that different markets are in different stages of development or implementation for these points, and the demographics of those engaging in live commerce also vary. As businesses try to adapt their strategies to these notions, the cross-border live commerce landscape is expected to evolve into a more interconnected, personalised, and dynamic ecosystem, providing new opportunities for international trade and consumer engagement.

Live commerce will have to deal with similar struggles as cross-border ecommerce in general. Understanding and respecting cultural nuances that impact consumer expectations, diverse payment and transaction systems, currencies, and transaction regulations across borders can complicate the execution of live commerce transactions. Moreover, delivering products internationally involves complex logistics, potentially leading to delays, increased costs, or difficulties in meeting customer expectations. Complying with diverse regulations and legal frameworks in different countries is a complex task for businesses engaged in cross-border live commerce. Varied technological landscapes and internet accessibility levels in different regions may impact the delivery and quality of live commerce experiences. As a business, how adeptly can you adjust your strategies to overcome these challenges will largely affect your success in the future.

This goes together with the challenges mentioned before. When we are talking about building trust and overcoming cultural barriers, live commerce can facilitate real-time interactions with direct communication and responsiveness, visual product demonstration, user-generated content and reviews, and customisation for local preferences. 

Viewing the world as a global marketplace means recognising it as a vast talent market for hiring the right people. Being able to attract and hire the right talents plays a vital role in overcoming trust and cultural barriers. For example, if you are focusing on expanding into the China market, you need to set up a suitable, dynamic team to facilitate that, people who can speak to the right audience. 

As various regions and markets work with different digital infrastructures, more integrations between live commerce and ecommerce platforms are to be expected. This will streamline the purchase experience by connecting live streams with product pages and offering integrated payment options for an optimised purchasing experience. 

Sustainability is becoming an increasingly significant concern, and technologies that support eco-friendly practices, such as carbon footprint tracking and sustainable sourcing, may play a role in shaping the future of live commerce. Businesses that prioritise sustainability can appeal to environmentally conscious consumers globally.  

Brands that incorporate these technologies into their live commerce strategies may provide a more engaging and memorable shopping experience, which can help them stand out in a crowded market. The future of live commerce in cross-border transactions will likely be shaped by a combination of technological advancements that enhance interactivity, personalisation, security, and efficiency.

Could you elaborate on the dynamics of social selling in China within the live commerce landscape? 

Social selling in China, particularly within the live commerce landscape, has unique dynamics that set it apart from practices in other regions. The integration of social media, ecommerce, and live streaming within the digital infrastructure has transformed the way businesses engage with consumers. As an extended functionality within social commerce, live shopping has become a mainstream strategy in China. The live commerce market in China reached a value of USD3.49 billion in 2021, with projections indicating an increase to USD 4.92 billion in 2023.

This editorial piece was first published in The Paypers' Cross-Border Payments and Ecommerce Report 2023–2024, which taps into the fast-growing cross-border market and provides a comprehensive overview of trends and developments that are pivotal in this space, being the ultimate source of information for ecommerce businesses interested in expanding globally.

About Li-Xiong Chu

Li-Xiong Chu is a Dutch-born Chinese proficient in English, Dutch, and Chinese. Through Chu Consulting, he advises companies on how to navigate the China market in this regard. He has a specific interest in talent acquisition, digital marketing, and ecommerce-related projects. In addition, he holds a permanent position as an Account Director at Maximum Advertising Group, focusing on employer branding in a global context.

About Maximum Advertising Group

Maximum Advertising Group  is a strategic employer branding agency that helps brands attract, hire, and retain people in the right places. Maximum is a marketing and design consultancy that specialises in navigating the global talent market by leveraging cultural nuances to best manage human capital and drive business strategy.