In recent years, the Southeast Asian e-commerce market has become a global focal point due to its astonishing growth rate. Among this, the rise of video commerce is particularly eye-catching, not only changing consumers' shopping habits but also bringing brand new opportunities for e-commerce platforms and sellers.

According to statistics from warc, the proportion of video e-commerce in Southeast Asia's e-commerce GMV soared from less than 5% in 2022 to 20% in 2024, and in the Singapore market, more than 60% of consumers said they would shop after watching YouTube videos.

Behind this trend is a profound transformation in consumer behavior and proactive adjustments in platform strategies.

Image source: warc

Inevitable Choice for a Younger Market

The young demographic structure of the Southeast Asian market provides a natural foundation for video shopping. Consumers here have a lower average age and a high dependence on social media platforms, spending hours every day scrolling through short videos and watching live streams as part of daily life. Compared to traditional e-commerce, video shopping is not only more entertaining and interactive, but also enhances consumer trust through authentic demonstrations by content creators.

For sellers, this trend means a complete transformation in marketing methods. In the past, sellers may have relied more on keyword optimization and static image displays, but now, the quality and creativity of video content have become key to attracting consumers. Whether it's product demonstrations, recreating usage scenarios, or live interactions, videos can convey product value more intuitively and shorten the consumer decision-making path. Therefore, sellers need to invest more resources in video content production and promotion, especially by collaborating with local content creators to better align with the preferences of their target audience.

Image source: Google

TikTok Shop Leads the Way While Shopee Forms Alliances

In the field of video e-commerce, TikTok Shop is undoubtedly the biggest winner. With its strong social attributes and precise algorithmic recommendations, TikTok Shop's GMV in Southeast Asia soared from $600 million in 2021 to $16.3 billion in 2023, an increase of more than 27 times. Behind this achievement is the platform's deep insight into user behavior. By analyzing users' shopping preferences and browsing history, TikTok Shop can accurately push product videos and stimulate purchase desire.

Image source: Google

However, TikTok Shop's success has also prompted other platforms to quickly follow suit. For example, Shopee has partnered with YouTube to launch a shopping alliance program, allowing content creators to embed Shopee product links in their videos so consumers can click directly to purchase. This collaboration not only provides Shopee sellers with broader exposure channels, but also opens up new income sources for YouTube creators.

Image source: ecommercenews

For platforms, the explosion of video e-commerce means an escalation in the battle for traffic. In the future, platforms will need to further optimize their technical capabilities, such as more precise recommendation algorithms and smoother live streaming experiences, while also strengthening ecosystem development to attract more content creators and brands to join.

How to Seize the Video E-commerce Dividend?

The explosion of video shopping has brought sellers unprecedented growth opportunities, but also raised the bar. First, sellers need to adapt to a content-driven marketing model, shifting from "selling products" to "telling stories." For example, showcasing product usage scenarios through short videos, or interacting with consumers in real time via live streams to answer questions.

Secondly, collaborating with local content creators is key. Southeast Asian consumers trust local KOLs' recommendations more, so sellers need to find creators whose brand tone matches their own and establish long-term partnerships.

In addition, supply chain and logistics capabilities are also being tested. Video shopping often brings explosive order growth, and if a seller's supply chain responds slowly or the logistics experience is poor, it can easily lead to consumer loss. Therefore, sellers must pay attention to preemptively laying out warehousing and logistics networks to ensure fast order fulfillment.

Image source: Google

Conclusion

The explosion of video e-commerce in Southeast Asia is just the beginning. With technological advancements and further maturation of consumer habits, the proportion of video shopping in e-commerce GMV is expected to continue rising. For sellers, seizing this trend means gaining a market edge; for platforms, innovation and ecosystem development will become the core of competition.

In the future, we may see more immersive shopping experiences integrating AR/VR technology, or personalized video recommendations based on AI. In any case, the Southeast Asian market is writing a new chapter for the e-commerce industry, and video shopping is undoubtedly one of its most exciting segments.