Intense Competition in Live Shopping in Indonesia, Who Will Be the Champion?

Kapanlagi.com - For online shopping enthusiasts, live shopping has become a familiar trend. Various live shopping platforms have emerged with their innovative features, one of which is Shopee Live.

The fierce battle between platforms is an inevitable phenomenon. Has Shopee's strategy, which dominated the e-commerce market first, successfully defeated the new players? Or is it the new players who are starting to show their capabilities?

Has the Power to Transform E-Commerce Competition in Indonesia

Each of them has the power to transform the e-commerce competition in Indonesia. Shopee Live itself is designed to be one of the features in Shopee e-commerce to provide an interactive shopping experience, so that any user, whether a buyer or a seller, who opens Shopee Live, already has the intention to buy and sell in real-time.

However, other live shopping platforms are part of social media that focuses on creative content. For example, music, dance, tips, and comedy, so the intensity of people opening this platform tends to be for entertainment purposes.

So, it can be said that live shopping owned by e-commerce platforms like Shopee Live targets brands and sellers who want to maximize their sales, because the traffic coming to Shopee has the intention and plan to shop.

Live Shopping Competition Data in Indonesia

According to a Populix research titled 'Understanding Live Streaming Shopping Ecosystem in Indonesia' in June, the data shows the competition in live shopping in Indonesia. This research presents data from Shopee Live, which recorded the highest usage rate as a live streaming feature for shopping among Indonesian people, followed by TikTok Live (25%).

Meanwhile, in terms of the most remembered live streaming feature, Shopee Live recorded a result of 60% of respondents, while TikTok Live followed with 30%. In line with the user data on live streaming platforms, Shopee has shown a high market share in terms of transaction volume and value.

In terms of the highest transaction volume market share indicator (56%) in the past 6 months, while TikTok Live has a percentage of 30%. Meanwhile, in terms of transaction value market share (share of revenue), Shopee ranks first in recording the largest transaction value, which is 54%, followed by TikTok Live (31%).

This is in line with the distribution of Indonesian people's preferences when shopping through live streaming features, where one of them is looking for Live Shopping with the most attractive offers. The majority of shopping characteristics and styles still refer to searching for promotions or attractive offers.

The most attractive promotions according to the public are free shipping (91%), discounts (87%), cashback (65%), shopping vouchers (47%), special bundles (34%), and exclusive product launches (20%). As for the distribution of preferences for attractive offers for each player:

From the above data, Shopee Live achieves a high number due to the ease and completeness of this live streaming feature with the cheapest price, the most promotions and free shipping, and offers the largest discounts and cashback.

Shopee Live Continues to Dominate

Through a press release regarding the achievement of the 9.9 campaign, Shopee stated that the enthusiasm of the public in utilizing the various excitement presented can be seen from the increase in Shopee Live viewership by more than 7 times and the number of products sold reaching more than 30 times during the peak of the campaign compared to regular days.

The extraordinary response from live shopping viewers in this campaign also shows how Shopee Live plays an important role as a platform to meet needs. The achievements of the above list of artists in attracting viewers to enliven the Shopee Live session during the peak of the 9.9 campaign yesterday on their respective store accounts cannot be doubted.

Take for example Ruben Onsu, Sarwendah, and Aurel Hermansyah, they have their own unique style in selling through live shopping, making them successful as TOP Streamers during the peak of the 9.9 Super Shopping Day. Seeing their skills that make the live atmosphere more exciting, the three of them also successfully set several new records during the peak of the campaign on Shopee Live:

1. Ruben Onsu through the @Ruben_Onsu store on Shopee Live set a new record by successfully achieving a turnover of up to 16 billion during the peak of the campaign.
2. Interestingly, as many as 180 thousand viewers simultaneously followed the Flash Sale moment of 9RB Toyota Avanza cars guided by Sarwendah through the @Sarwendahofficial store.
3. Another celebrity with extraordinary achievements is Aurel Hermansyah through the @TokoMamaNur store, which successfully sold more than 16 thousand products.

Not only the three big names mentioned above, in recent months, a series of Jakarta celebrities such as Raffi Ahmad, Baim Wong, Nikita Mirzani, Atta Halilintar, Aurel Hermansyah, Lesti Kejora, and Keanu Agl have also enlivened the live streaming world on Shopee Live. Even the latest news was briefly shocked by news from Dr. Richard Lee who successfully broke a new record and reached a turnover of 5.5 billion in just 1.5 hours on September 1st.

Meanwhile, the possibility of new players dominating live shopping seems too early. Sarwendah even got angry during live streaming on the other platform because of the lack of viewers. So, this increasingly heated strategy competition can reveal that Shopee Live still dominates most of the factors that make it the majority choice for users.

The creative implementation of live shopping by collaborating with famous artists or content creators has successfully attracted the interest of the public in utilizing this interactive feature as a platform to meet needs and follow popular digital trends.

Collaboration with Local Sellers Brings Benefits to Shopee Live

The interactive feature of live shopping provides an opportunity to interact proactively, giving consumers the chance to learn more about a product and the convenience of shopping where products can be directly purchased during the broadcast.

It is not uncommon for people to wait for sellers to hold live streaming content before deciding to purchase a product. This has a strong influence, especially in building trust between sellers and buyers.

Therefore, it is not surprising that during the 9.9 campaign, there are more and more businesses optimizing Shopee Live at the peak of the campaign as their marketing strategy, with the number of streamer sellers increasing up to 5 times.

One example of a local brand that caught attention by successfully optimizing the opportunities provided is the beauty brand BHUMI, which has increased sales transactions during the 9.9 campaign by 27 times thanks to the interactive feature and exclusive promotions available on Shopee Live.

In addition, the men's fashion brand Geoff Max also made Shopee Live one of its business strategies this year. Throughout the 9.9 campaign, Geoff Max recorded a 130-fold increase in transactions on Shopee Live compared to normal days.

The success of Shopee Live as a feature that is increasingly relied upon is very evident, and one of the main factors is the attraction of live shopping. Sellers can not only market their products through this feature, but also have the opportunity to interact directly with viewers.

This is what makes live shopping a very effective tool in building trust and customer engagement. Other achievements were also felt by the local fashion brand Eiger during the peak of the Shopee 8.8 campaign, with sales in their store increasing 16 times through Shopee Live.

Not stopping there, to further maximize their live shopping sessions, several brands have also collaborated with top artists such as during the Shopee Live session Erigo x JKT48 with Zee JKT48 and Raffi Ahmad, which successfully broke the sales record of 5 billion in less than 10 minutes.

Similar achievements were also felt by the local brand Tally, which collaborated with Sarwendah and achieved a 75-fold increase in turnover on Shopee Live. Several successes have shown that the brand's decision to adopt Shopee Live as one of its marketing strategies is the right step.

Basically, online shopping is no longer something new, but shopping with live video streaming features seems to be the latest trend that complements and enhances the online shopping experience.

The convenience offered and the ability to see the product quality directly make live streaming platforms the favorite choice as a more exciting buying and selling platform to drive order conversions and create a more interactive shopping experience with customers. The strategies of each platform, such as Shopee Live, in developing their live streaming features deserve our applause.

Shopee's longer experience in studying consumer shopping habits and innovating to provide the best opportunities and collaborations for sellers is the key factor that gives Shopee Live an advantage compared to new players in the live shopping world.

(kly/tmi)