The growth of video commerce: E-commerce in Southeast Asia

Video marketing has evolved into an indispensable tool in performance marketing. Platforms like YouTube offer unparalleled reach and engagement, making video commerce a driving force in e-commerce, especially in Southeast Asia. The trend of integrating shopping opportunities directly into video content is creating explosive growth momentum. This approach allows companies to showcase their products more effectively and increase their revenue. In this article, we take a look at the latest developments and success factors of video commerce in Southeast Asia.

Video commerce on the rise

In recent years, video commerce has evolved tremendously. By 2024, video commerce already accounts for 20% of total e-commerce volume in Southeast Asia. This is a remarkable increase compared to just 5% in 2022. This development is largely due to the growing consumer trust in video content. Consumers increasingly rely on videos to research products and to be convinced of their quality and benefits.

The leading platforms: YouTube and TikTok

In Southeast Asia, YouTube and TikTok dominate the video commerce landscape. With 224 million monthly active users, YouTube leads the platforms, followed by TikTok with 173 million users. Short videos, such as YouTube Shorts and TikTok clips, are a key driver for customer acquisition. According to a survey, 93% of marketers report a significant increase in customer acquisition through social media video ads.

Shoppable video features: Direct purchasing from within the video

One of the most innovative developments in video commerce is the ability to purchase products directly from the video itself. Platforms like YouTube Shopping have integrated shopping features. These allow users to buy products through embedded links in videos, Shorts, and livestreams. This significantly shortens the purchasing process and leads to higher conversion rates. An example of the success of this feature is the L’Oréal Thailand campaign. Integrating shopping features into their video content resulted in a tenfold increase in paid views.

Higher engagement rates and conversion growth

Integrating videos into the shopping process leads to significantly higher conversion rates. Studies show that video-based shopping experiences achieve up to 3.6 times higher conversions. In addition, they reach 5 times higher add-to-cart rates compared to traditional static product pages. Personalized formats such as live video shops and 1:1 video chats further increase engagement. They create a deeper connection with the customer.

Successful examples from practice

An outstanding example of the success of video commerce in Southeast Asia is the fashion industry. Brands in the fashion sector report an increase of up to 170% in repeat purchases. This is achieved through the use of interactive video content. The electronics industry also benefits enormously from the integration of video commerce, with repeat purchases increasing by up to 275%.

Conclusion: The transformation of e-commerce through video commerce

Video commerce is the way of the future. The merging of entertainment and shopping opportunities creates a seamless experience for the consumer. This leads to a higher willingness to purchase. Companies in Southeast Asia that adopt this trend early can increase their revenue and build a closer relationship with their customers.

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Contact Media Beats GmbH to learn more about our performance marketing services. Together, we will develop an innovative video commerce strategy.