In Southeast Asia, video commerce has emerged as a formidable force, comprising approximately twenty percent of the region’s e-commerce gross merchandise value.
This surge has compelled consumer brands to reconsider and adapt their distribution frameworks extensively.
Recent data curated by Google, Temasek, and Bain indicates that sales driven by creators have transitioned from mere experimental marketing endeavors to foundational components of retail infrastructure in pivotal markets such as Indonesia, Thailand, and Vietnam.
This proliferation, however, is not without its complications. Sellers engaging in live broadcasts often experience significant disparities between the gross merchandise value recorded and the actual revenue realized.
This discrepancy emerges from factors such as cash-on-delivery refusals, return periods, fees payable to creators, and commissions levied by platforms.
During initial market-share acquisition phases, promotional incentives—including platform-funded vouchers and discounted shipping—have obscured the authentic profitability of channels. The cessation of these subsidies can precipitate a rapid decline in the economic viability of merchants.
Platform Control an
Engaging in creator-led sales results in the transfer of transaction infrastructure to external entities. Platforms wield substantial power over crucial components such as storefronts, checkout processes, payment mechanisms, consumer records, delivery stipulations, and issue resolution, effectively relegating brands to the roles of inventory suppliers and bearers of product returns.
Operators engaging across multiple markets—such as Jakarta, Bangkok, and Manila—confront divergent regulatory environments.
The requirements governing content licensing, creator agreements, disclosure obligations, and withholding taxes differ substantially by jurisdiction, creating challenges for companies attempting to execute cohesive regional campaigns without localized modifications.
This trajectory mirrors the evolution of live commerce in China, where brands initially concentrated sales through prominent independent hosts, only to witness a decline in margins thereafter.
In response, Chinese consumer brands established in-house broadcast studios and instituted scheduled daily programming, facilitating the retention of customer data and safeguarding gross margins.
Regulatory Scrutiny Reshapes Regional Operations
Across Southeast Asia, governmental bodies are increasingly treating social commerce platforms as vital retail infrastructure rather than mere digital advertising venues.
In September 2023, Indonesia implemented Ministry of Trade Regulation 31, which forbids direct e-commerce transactions on social media applications.
This regulation effectively suspended TikTok Shop until parent company ByteDance committed to a $1.5 billion investment to secure a controlling stake in GoTo’s Tokopedia platform.
In Vietnam, Decree 147, enforced in late December 2024, mandates rigorous account verification protocols before individuals can host or post livestreams.
Consequently, merchant operators are now developing direct customer engagement channels, establishing internal studio facilities, and incorporating formal data-rights provisions within creator agreements, particularly in tier-two Vietnamese cities and eastern Indonesia, where production costs remain competitively advantageous.
Retailers throughout the region are now diligently monitoring net settlement data and return rates for each stream, as platforms recalibrate their commercial take rates and enforcement regulations through the course of 2026.
Source link: Retailnews.asia.
