How the new wave of influencers can reshape social commerce in the region

Social commerce has been flourishing and experiencing steady growth since the pandemic and is still on the rise.

As reported by Euromonitor International, social commerce sales in Asia Pacific (APAC) are expected to double from 2019’s US$2 trillion to reach US$4 trillion by 2024.

China, the world’s second-largest economy and the most developed social commerce market, is forecasted to reach a market size of US$4.7 trillion by 2030, at a CAGR of 33.5%, during the period from 2022 to 2030, per a report by Euromonitor.

Because of its social nature, social commerce is people-powered retail, and it is no surprise that the creator economy, also known as the influencer economy, has been supercharging the growth of social commerce. The APAC creator economy market is expected to reach US$848 billion by 2030, growing at a CAGR of 30% from 2023 to 2030.

Within that market, live commerce is experiencing phenomenal growth and popularity, initially in China and now also in Southeast Asia (SEA) and other markets.

According to the Chinese research company Wind, the livestreaming audience in the market topped 750 million viewers in December last year – that’s 70% of Chinese internet users. In SEA, TikTok live commerce is projected to reach US$20 billion in gross merchandise value (GMV) in 2023, representing a compound growth rate of 30% a month.

For both conventional and digital brands in China, livestreaming is a dominant marketing channel. In only a few hours, influencers on platforms such as Kuaishou, Douyin, and Taobao have the power to facilitate large-scale transactions.

As a result, clones of real streamers generated by artificial intelligence have been gaining traction. This allows them to livestream even into the wee hours of the morning, at a fraction of the cost – something incredibly appealing to brands.

Since 2022, many Chinese startups and major tech companies have jumped on the bandwagon, offering the service of creating such avatars for eCommerce livestreaming. Brands can clone a human streamer to work around the clock for as little as US$1,000, plus a few minutes of sample footage, reports MIT Technology Review.

These AI streamers are competent enough to take the position of mid-tier eCommerce influencers, so much so that the average pay for livestream hosts in China has fallen by 20% as compared to 2022, according to MIT Technology Review.

Not only are these clones less expensive than human streamers, but they also help to increase sales during the lull period

In recent years, eCommerce has embraced 24/7 business hours. A recent survey by Eachnight found that the number of online customers who shop 24/7 climbed by 18% versus the previous year.

The study also found that 74% of women and 69% of men made a late-night online purchase in the past year.

Another interesting emerging trend in APAC’s livestreaming landscape is the rise of NPC streamers, in which people make videos on TikTok Live acting as if they have been preprogrammed with repetitive phrases and reactions, much like non-playable characters (NPCs) in video games.

Viewers tip the creators by buying animated gifts with virtual coins that can be swapped for cash. Gifts trigger certain phrases or actions during NPC streaming, and they are always carried out with the same robotic tones and mannerisms.

One of the most famous NPC livestreamers on TikTok has been @natuecoco, from Japan. In her livestreams she pretends to be in a “small bounce” or “idle animation” common to NPCs, and she only reacts when someone gives her a gift. Another NPC streamer, Junxi Chen, is a Chinese Minecraft fanatic who streams on Twitch, YouTube, and TikTok. About 2,000 viewers watched every second of his four-hour show, and he managed to garner more than 1.3 million views, CNBC reports.

Caption: @natuecoco NPC Livestream

How can brands tap into this craze? They may want to investigate ways to collaborate with NPC streamers and in turn engage audiences in co-creating content from given effects and reactions.

Brands could also develop interactive storylines or quests that feature their products or brand messaging. Branded reactions or effects for NPCs could also be created and offered, and viewers given the option to acquire these customisable reactions. From these, brands could curate the messages into a unique story.

Besides NPC livestreams, the growing trend of “de-influencing,” in which influencers actively discourage their followers from purchasing certain products, is also shaking up the traditional influencer model underpinning social commerce.

Even though de-influencing seems to be in opposition to the traditional role of influencers, who typically encourage consumption through product recommendations, it is ultimately still a form of influencing that brands can tap into.

After all, de-influencers also want to sway people’s purchase decisions, even if their goal is to encourage fewer or less-expensive purchases. Although the anti-influencer mindset originated in the West as a response to rising living costs, Asia is embracing it swiftly, in its own way.

For example, Chinese internet users are known for being emotive and straightforward when sharing their de-influencing opinions on social media. Search for (“step on a bomb”) on Chinese social media site RED, and a plethora of negative reviews for various businesses and items appear.

Amid the de-influencing movement, traditional influencers who have a large fan base and a carefully curated feed of sponsored content are at risk of becoming less relevant, since they may no longer seem as real or relatable.

APAC consumers are increasingly shifting to creators with anywhere between 1,000 to 5,000 followers. These “micro-influencers” are now deemed better at building trust and commitment with their followers.

This could be seen as re-influencing rather than de-influencing – instead of paying for overt product endorsements, brands could instead encourage open conversations and opposing perspectives from trustworthy sources to help buyers make more-informed decisions.

Forming partnerships with relevant de-influencers who are already fans of the brand may help add authenticity and enable the brand to strengthen its community, with this new era of influencers at the forefront.

As social commerce continues to expand, we are witnessing a growing number of inventive content and integrations being brought to the market. Influencers and creators are leading the way by exploring methods to generate and captivate, all with the aim of enhancing the value of products or their interactions with audiences.

Brands can maintain a competitive edge in a dynamic social environment by tapping into emerging trends within social commerce, performing tests, and finding solutions that not only elevate social media presence but also align with their core values to ensure the authenticity that consumers demand.

Photo courtesy of natuecoco/X, Tiktok

This article was written by Nathaporn Aksornkitti, senior regional strategist, UM APAC.