An EC method that introduces and sells products in real time through live streaming. The host demonstrates product feel and sizing while viewers ask questions via chat and purchase on the spot. Known as "zhibo daihuo" in China where it has formed a massive market, it is also expanding in Japan with Rakuten and Mercari entering the space.
Characteristics of Live Commerce and Market Trends
The defining characteristic of live commerce is two-way, real-time communication. Traditional EC required purchase decisions based solely on product photos and descriptions, but live commerce allows viewers to ask questions on the spot - "What's the actual size like?" "Is the color the same as on screen?" - and receive immediate answers. This sense of immediacy and trust is what drives higher purchase rates.
In China, the live commerce market reached approximately 4.9 trillion yuan (roughly 100 trillion yen) in 2023, growing to account for about 25% of total EC. Top streamer Li Jiaqi (Austin Li) has been known to generate tens of billions of yen in sales from a single broadcast. The Japanese market is still in its early stages, but major platforms are entering in succession - Rakuten's "Rakuten LIVE," Mercari's "Mercari Channel," and SHOWROOM's live commerce features. Sales through live streaming are trending upward year over year, centered on apparel, cosmetics, and food.
Practical Tips and Precautions for Live Commerce
When using live commerce as a consumer, be careful not to make impulse purchases driven by limited-time prices and flash sales during broadcasts. Appeals like "Only 10 left!" or "Special price only during this stream!" stimulate buying desire, but you should calmly compare with regular prices to determine whether it is truly a good deal. It is also important to confirm in advance whether the return policy applies to purchases made through live commerce.
For businesses, live commerce is a powerful channel for directly conveying product appeal. It pairs particularly well with products that are difficult to convey through text and photos alone - fabric texture, food preparation processes, cosmetic color payoff, and so on. The keys to success are host selection and content planning. By featuring hosts with deep product knowledge and strong viewer interaction skills, and providing value-added content such as "usage suggestions" and "styling examples" rather than mere product introductions, you can boost viewer engagement and purchase rates.
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