You probably wonder why you see a lot of people doing livestreams and selling a lot of things lately these days. It's not just cheap mass-produced perfumes or fast fashion trendsetter favorites. Live selling has become a lucrative industry. It's a new shopping experience that drives a sense of urgency and the fear of missing out in people stumbling upon a particular item online.
As one of the largest consumer markets in the world, Indonesia has emerged as one of the largest live shopping markets with 233 million active Internet users. Access to different e-commerce platforms, fintech solutions, and live streaming are incredible ingredient for a growing online shopping market. Live shopping has dramatically reshaped the online shopping and e-commerce landscape in Indonesia by offering a blend of entertainment, interaction, and instant shopping that has redefined consumer behavior.
Although Indonesia’s digital advertising landscape is expected to reach a market value of $3.05 billion in 2024, smaller brands capture only a modest share due to the high costs associated with digital ads and the fierce competition for visibility. With established brands dominating the market, their limited budgets restrict their access to traditional advertising channels. That is why they are more willing to invest in cost-effective, creative, and unconventional strategies to build their presence.
These new players leverage the power of live streaming to gain recognition, build trust, and create one-of-a-kind shopping experiences. Live selling has become an accessible, powerful platform that levels the playing field for emerging brands. Its appeal lies in the unique blend of direct interaction, product transparency, and real-time engagement, which resonates with the young and digitally-savvy population. There is an element of authenticity in live streaming that traditional advertising and marketing cannot fill.
Many online platforms have integrated live-streaming capabilities that enable brands to showcase products in action, answer questions live, and foster a sense of community - qualities that traditional e-commerce sites lack. The rise of influencer-driven social commerce has further fueled this trend, as influencers with engaged followings offer personalized, authentic shopping experiences that build trust and drive conversions. This dynamic approach to online shopping aligns with Indonesia’s social media culture and tech-forward user base, helping to make live shopping not only a favored e-commerce strategy but a rapidly growing sector in the region’s digital economy.
Live selling has become so popular that influencer factories have popped up across Asia, from China to Indonesia. The growing social commerce sector gave rise to popular live-selling personalities who often partner with brands to host live streams showcasing their products in real-world scenarios.
It is often said that online influencers are the new celebrities, while celebrities are embracing the online influencer side of their fame to cash in. Although established brands still make a lot of television commercials and print ads, many brands are now working with influencers to reach their target audience directly. With that being said, they are looking to push their products and services through them.
They play a significant role in bridging the gap in engagement and interaction between the brands and their target audience. Most brands that leverage influencers are beauty, food, and beverage brands. In a recent survey, around 26% of Indonesian brands run influencer campaigns once a month. Audience reactions to these types of content have been favorable, with 68% having purchased an item or product endorsed by an influencer.
As one of Indonesia’s largest e-commerce platforms, Tokopedia regularly collaborates with popular influencers to host live-stream events during major shopping festivals, such as the 11.11 and 12.12 sales. During these live streams, these influencers demonstrate product use in real-time, answering audience questions and providing exclusive discounts to those tuned in. This approach has proven to be highly effective, bringing in a great boost in sales and increased brand loyalty due to the trust influencers build with their audiences through live content. This strategy has led to significant spikes in traffic and sales, highlighting how live streaming can transform brand visibility and encourage instant purchasing decisions.
Leading beauty and skincare brand Wardah has also embraced live streaming to engage its predominantly Millennial and Gen Z audience. By collaborating with beauty influencers, it conducts interactive sessions where influencers showcase makeup techniques, provide skin care advice, and answer viewer questions. This has led to increased product awareness and consumer trust, as viewers feel connected to the brand through the direct and genuine approach of live streaming.
Social media has become deeply embedded in daily life, with mobile phones as the primary device for accessing online content. Internet penetration reached 79.5%, reflecting widespread connectivity that fuels both entertainment and commerce. This digital accessibility has transformed social media from a casual engagement tool into a powerful platform for real-time consumer interaction, paving the way for live streaming to become one of the most popular mediums for brand engagement.
The demand for real-time experiences and instant gratification has made live streaming an ideal choice for brands looking to capture consumers’ attention. Today’s consumers expect immediacy and authentic connection, and live streaming delivers on both. Brands can respond to viewer questions in real time, share exclusive behind-the-scenes looks, and launch limited-time offers that create a sense of urgency. For consumers, this level of interaction feels personal and builds trust, making live streaming a powerful tool to convert interest into action.
The surge in social media use has given brands direct access to Indonesia’s massive digital audience. Instagram, TikTok, and YouTube have seen steady growth, with each platform embracing live-streaming functionalities that make it easy for users to tune in, comment, and engage with brands and influencers. TikTok, in particular, has emerged as a favorite for live content, with Indonesia having the largest user base at 157.6 million. This growth is not only indicative of a preference for video content but also highlights an audience hungry for dynamic, interactive experiences.
The numbers reveal just how integral live streaming has become for brands. According to recent studies, live-streamed content holds viewer attention significantly longer than pre-recorded videos, with viewers typically spending over 80 minutes on live streaming sessions. This level of engagement allows brands to dive deeper into product details, showcase usage, and address viewer concerns in ways that pre-recorded ads simply cannot match. By leveraging these real-time interactions, brands are better able to foster loyalty, with data showing that consumers are more likely to buy a product after watching a live demonstration or discussion.
Live streaming has revolutionized social media by turning it from a passive viewing experience into an engaging shopping experience, significantly contributing to the rise of social commerce. This shift has been especially powerful in Indonesia, where live shopping has become a go-to strategy for brands aiming to connect with tech-savvy consumers.
Live shopping offers a unique blend of commerce and entertainment, creating an experience that is not only informative but also enjoyable for viewers. Live stream events often feature product demonstrations, special discounts, and flash sales, all within an interactive format that encourages viewers to ask questions and get real-time answers. This approach appeals to consumers, who are highly engaged in social media and receptive to innovative shopping experiences.
Studies show that Indonesian consumers are particularly responsive to this format, with many preferring live shopping over traditional e-commerce. This preference is largely due to the interactive nature of live streaming, which allows consumers to see products in action, ask questions, and receive immediate answers - something that traditional online shopping often lacks. Additionally, most consumers feel more confident in purchasing decisions after engaging in a live stream event, as they can witness product quality and usability firsthand before buying.
More importantly, consumers feel a stronger connection to the brand and are more likely to make a purchase. Live-stream viewers spent millions on purchases made directly through social media platforms, with a significant portion coming from live-stream sessions. This trend reflects a growing consumer trust in live stream shopping as an effective and reliable way to explore, evaluate, and buy products.
For new brands, live streaming offers a powerful entry point into the market. By tapping into the local preference for live, interactive shopping experiences, brands can drive both engagement and sales, establishing a strong market presence. As social commerce continues to grow, brands that embrace this strategy stand to benefit from increased visibility, higher conversion rates, and deeper customer loyalty in the dynamic digital landscape.
For smaller brands that may lack the resources for high-budget advertising campaigns, live streaming provides a more accessible and cost-effective approach. Setting up a live-stream session costs a fraction of what traditional TV or billboard ads do, allowing brands to showcase their products without major financial investments. In Indonesia, where most small businesses operate with limited marketing budgets, live-streaming offers a feasible option to reach audiences at scale.
Despite the promising prospects of live streaming, there are certain challenges that brands have to face, such as intense competition, data costs, and technical demands for creating high-quality content.
As live streaming becomes more popular, the market may become saturated with brands vying for consumer attention. To stand out, brands will need to offer engaging, seamless experiences that resonate with audiences on both visual and interactive levels.
Creating quality live streams also demands technical expertise and equipment. Brands may need to invest in higher-quality production, lighting, and audio equipment to meet rising consumer expectations. These investments, though initially costly, can help smaller brands build credibility and attract more customers in the long term.
Many governments are looking to cash in on this growing industry, while some want to regulate it completely, such as in the case of TikTok in Indonesia.
In 2024, the American streamer iShowSpeed became a sensation across Southeast Asia, particularly Indonesia. Known for his high-energy personality and spontaneous, engaging live streams, he attracted massive regional audiences, sparking a unique cultural connection. His IRL (in real life) content that features real-time interactions with fans, humor, and authentic moments made him a standout among young audiences who crave authentic engagement and direct interaction with influencers.
With a large population of 140 million young people between 18 and 39 years old, iShowSpeed’s success highlights the growing appeal of live-streaming as a medium for reaching younger, digitally-native consumers. His approachability and genuine reactions fostered a sense of community and trust, making him relatable and memorable to audiences. Some local brands got a ringing endorsement from him, whether it’s Jollibee in the Philippines, Uncle Roger’s Restaurant in Malaysia, KFC in Vietnam, or a small street food stall in Indonesia and Cambodia.
Brands can leverage live streaming by collaborating with influencers who show authenticity, energy, and willingness to connect with audiences. Incorporating Q&A segments, live demonstrations, and user-generated content on a personal level will go a long way. Data suggests that 82% of Southeast Asian consumers trust influencers more than traditional celebrities. With live stream events consistently driving high engagement rates, brands have a powerful tool for amplifying their presence.
As consumers grow more accustomed to livestream shopping, their expectations will likely rise. Audiences may expect immersive, interactive experiences that allow them to engage with hosts, explore products in detail, and access exclusive deals. This shift will drive brands to adopt more advanced features like augmented reality (AR) product displays, multiple camera angles, and personalized shopping interactions to create memorable live streams.
It is expected that social commerce will see a 17% increase by 2025, driven by both consumer demand and platform investment. Social media and e-commerce platforms are expected to continue expanding their live stream capabilities, adding new tools and features that enhance the shopping experience. Brands will benefit from more robust features that facilitate audience engagement and streamline purchases.
By leveraging this powerful tool, brands can reach consumers in real-time, build trust through transparency, and drive higher conversion rates. As social commerce continues to evolve, its impact on consumer habits and brand growth will only deepen, especially in markets where digital engagement is rapidly expanding. For emerging brands, embracing live streaming is not just a trend but a strategic move that can build loyal communities, boost sales, and solidify their place in an increasingly digital marketplace.
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