Live Commerce Strategy in the Asian Fashion Industry

October 19 , 2021

Live commerce in the Asian market is expanding at a remarkable pace. In the case of China, Wanghongs are all the rage as they exert immense power and influence in the market. The Chinese live commerce market size was an estimated $144 Billion in 2020. The Korean market is estimated at $3 Billion but is expected to more than double in the year to come. Looking closely, fashion and beauty market dominates over half of the overall live commerce market, insinuating that live commerce is gaining importance for more fashion brands.

While major Korean retail platforms such as Naver and Kakao are eager to join the game, fashion brands seem to be more hesitant for this transition. Nevertheless, live commerce is becoming more of a necessity in the status quo. Still there is reason behind the hesitance. For any fashion brand, the brand image is of essence and with the short airing time and sales driven retail model, brands are concerned if they would be able to control their brand image and value. However, to meet the needs of the digital native MZ generation, who prefer video contents, the concerns should be focused on how to protect the brand value whilst utilizing video commerce.

The key lies in recognizing the unique characteristics of live commerce. For brands, they must prove and fully deliver the full value and worth of their product and especially for fashion brands, the context is a crucial factor. The value and message the brand gives to its consumers ultimately determines the survival of the brand which is in contrasting to live platforms where maximum transaction holds the most importance.

In other words, fashion brands must put out video content that embodies the brand value to communicate with consumers, using as a means to brand themselves in large scales instead of simply reusing old content as a means to encourage consumption. Brands can also be strategic in balancing brand videos with influencer videos in addition to which channels are used.

The way live commerce is influencing consumer is not unlike how television used to influence and form public opinion in the past. Thus, the pattern of allocating certain time slots for flash sales is not a desirable route. With in-depth understanding of video contents and branding, when are where to air the content, in essence, with a strategic approach, brands will surly survive the in the era of live commerce.