Expanding live commerce in front of the distribution industry… “Market of 9 trillion won in 2 years”

11th Street entertainment type live broadcast screen
11th Street entertainment type live broadcast screen

[11번가 제공. 재판매 및 DB 금지]

(Seoul = Yonhap News) Reporter Kwon Hye-jin = As’live commerce’ (online real-time broadcasting-based commerce) has become the trend of non-face-to-face shopping in conjunction with the novel coronavirus infection (Corona 19), retailers are struggling to expand their services.

According to industry sources on the 28th, Lee Sang-ho, CEO of 11st Street, announced on the 25th that he would build an open live commerce infrastructure in the second half of this year at the shareholders’ meeting of SK Telecom, the parent company.

11st has been conducting live commerce by producing its own content under the name’Live 11′ since last year, and it will be expanded and reorganized so that general sellers can participate from the second half of this year.

11st is planning to expand the contents of the recently newly established entertainment-type live commerce section.

Coupang, which started live commerce’Coupang Live’ earlier this year, has already operated an open service and can sell products through live broadcasting directly by the general public just by going through the registration process.

Currently, only beauty category products are being tested, but it is expected that the product types will be further expanded in the future.

Timon also opened’Timon Select’ last year, allowing sellers to do live commerce in the form of private broadcasts. Since 2017, the company has been conducting live commerce on its own live commerce channel, TVon, and expanded it.

In recent years, Tmon is expanding its product range by establishing’Timon Home Live’, which deals with residential products such as officetel sales at TVON.

Timon Home Live
Timon Home Live

[티몬 제공. 재판매 및 DB 금지]

Home shopping companies, which have the most similar type of business to live commerce, are also focusing on live commerce with show hosts. Cosmetics and fashion companies are also operating their own live commerce and investing in fostering influencers and producing content.

Online platform companies such as Naver and Kakao have already entered the live commerce market one step ahead of the distribution industry and are actively providing services.

Shopping Live, Naver’s live commerce, achieved a cumulative 100 million views at the end of last year, and is evaluated as a new shopping channel.

Kakao Commerce also recently launched Kakao Shopping Live at the top of the shopping tab, and the number of broadcasts is also increasing from 1 to 2 times a day to more than 5 times, responding face-to-face.

Estimated size of the domestic live commerce market
Estimated size of the domestic live commerce market

[신세계그룹 뉴스룸 홈페이지 캡처. 재판매 및 DB 금지]

The reason why retailers are expanding their services is that the market is expected to grow significantly in the future as rice commerce becomes the trend of online shopping.

In a column last month, an analyst at E-Best Investment & Securities, published in the newsroom of Shinsegae Group, the live commerce market estimated at 3 trillion won last year is expected to reach 9 trillion won in 2023.

In the distribution industry, there is a prospect that the live commerce market will grow further and may replace home shopping in the long term.

An industry official said, “Since home shopping has a high fee, small and medium-sized merchants prefer live commerce,” and said, “The reason they like it is that you can receive consumer feedback (reaction) right away.”

Another online shopping mall official said, “The same product is more popular when it is sold through live commerce.”

[email protected]

Source