The Rise of Live Commerce: A New Shopping Trend

Live commerce is becoming a big deal in the West, especially after this year’s Black Friday. For the first time, live commerce was a significant part of sales during this shopping event. One of the standout performers was TikTok Shop, which made over $100 million in sales in the United States on Black Friday. More than 30,000 creators and sellers went live, including big brands like Nike, Crocs, and L’Oreal.

So, why is this important? In China, live commerce is already huge. In 2023, it generated nearly $700 billion in sales. In comparison, the United States only saw about $50 billion in live commerce sales, which is 14 times less. However, this could be changing. The success of TikTok Shop suggests that the West might be on the brink of a live commerce boom, similar to what happened in China during the pandemic. From 2019 to 2021, the live commerce market in China grew seven times.

Interestingly, companies like Meta and Amazon have tried to enter the live commerce space but haven’t been very successful. Now, it’s an Asian company, TikTok, leading the way in the West. In China, Douyin, the Chinese version of TikTok, is the second-largest live commerce platform, holding almost 50% of the market. This shows that TikTok has the experience and know-how to succeed in this area.

Looking ahead, TikTok Shop aims to reach $50 billion in global sales by the end of this year, which is double what it made in 2023. However, this is still small compared to Amazon’s expected $750 billion in sales for 2024.

In summary, live commerce is gaining traction in the West, with TikTok Shop leading the charge. This trend could reshape how we shop online, making it more interactive and engaging. As more brands and creators join the live commerce movement, we might see even bigger sales and more innovative shopping experiences in the future.