Southeast Asia continues to emerge as a global leader in social commerce, where social media platforms not only entertain but also facilitate buying and selling directly. As of 2024, social commerce has become one of the most significant drivers of e-commerce growth in the region. With a digitally savvy population, increased smartphone penetration, and booming internet usage, the region offers unparalleled opportunities for brands to engage with consumers through innovative, social-first commerce strategies.

According to a recent report by ZICG, the social commerce market in Southeast Asia is expected to reach $42 billion by 2025, driven by rising middle-class incomes and the widespread influence of digital influencers. For businesses looking to tap into this market, now is the time to create a robust social commerce strategy tailored to Southeast Asia’s unique digital ecosystem.

Why Southeast Asia is Poised for Social Commerce Growth

Southeast Asia’s position as a social commerce hub has taken the global market by storm. But what are the key factors driving this surge in digital shopping behaviour? Let’s dive into the critical reasons behind this explosive growth.

Mobile-First Consumers

The digital revolution in Southeast Asia is largely driven by mobile phones. In 2024, 90% of internet users in the region accessed the internet primarily through their smartphones. The region's youth, especially, are digitally native and spend a significant amount of time on social media platforms like Facebook, Instagram, and TikTok, making these the perfect mediums for brands to engage their audiences.

With internet penetration reaching 75% across Southeast Asia, social media is integrated into the everyday lives of consumers. From browsing products to purchasing through in-app features, the seamless integration of shopping and social media interaction has turned platforms like TikTok and Instagram into digital storefronts.

But there’s more to this mobile-first approach than just accessibility.

Social Media as a New E-Commerce Channel

What sets Southeast Asia apart is how social media platforms have evolved into full-fledged e-commerce platforms. Consumers in countries like Thailand, Indonesia, and Vietnam are not just using social media to connect with friends but also to discover, review, and purchase products.

In the last two years, platforms like TikTok Shop have gained significant traction, becoming a go-to for both small businesses and large brands to connect directly with consumers. TikTok's algorithm, which prioritises entertainment and viral content, has allowed brands to turn product discovery into a social experience, leading to a 28.4% market share in 2023 alone.

And there’s yet another crucial player driving this trend: influencers. How exactly do they fuel the engine of social commerce?

The Role of Influencers and KOLs in Social Commerce

Influencers, or Key Opinion Leaders (KOLs), have become the linchpin of Southeast Asia’s social commerce. From beauty products to electronics, influencers are trusted voices that guide consumer purchasing decisions. A 2023 study found that 69% of Philippines consumers were more likely to buy a product recommended by a KOL than from traditional advertising.

Platforms like Instagram and TikTok are key enablers of this KOL economy, where influencers interact with their followers in a way that feels personal and authentic. These interactions often culminate in product endorsements that drive sales through in-app shopping features or live-streaming events, a trend particularly popular in countries like Thailand and Malaysia.

How Brands Can Capitalise on Social Commerce Trends

As social commerce continues to evolve in Southeast Asia, brands must be nimble and strategic in how they approach this thriving market. The following strategies will help businesses make the most of these exciting trends.

1. Build a Strong Presence on Multiple Platforms

Given the diversity of platforms driving social commerce in Southeast Asia, brands need a multi-channel approach. In 2024, consumers are active across a range of platforms, including TikTok, Instagram, YouTube, and even emerging platforms like Shopee Live. Each platform offers unique opportunities to reach different segments of the population. For instance, TikTok excels at reaching younger, Gen Z audiences, while Facebook and Instagram are more popular among older millennials and Gen X consumers.

By engaging consumers across these platforms, brands can ensure they reach the right audiences with tailored messages. But it doesn’t stop there — personalisation is key to winning over today's discerning consumers.

2. Collaborate with Micro and Nano Influencers

While top-tier influencers often have broad reach, micro and nano influencers tend to have more engaged, loyal followings. Southeast Asia’s consumers are increasingly trusting smaller influencers whose recommendations feel more relatable. For brands, collaborating with these influencers offers an authentic and cost-effective way to tap into niche markets. Moreover, micro-influencers often have a more direct line of communication with their followers, which can lead to more personalised product endorsements and higher conversion rates.

Still, there’s another tactic that has proven to be a game-changer for brand engagement.

3. Leverage Live Streaming for Real-Time Engagement

Live streaming has become one of the most effective tools in the social commerce toolkit. In 2024, the revenue of the live commerce market in Southeast Asia is expected to reach US$116.50bn, thanks to the real-time interaction it offers. Platforms like Shopee Live and LazLive have led the way in this trend, allowing brands to host live shopping events where consumers can ask questions, view product demonstrations, and make purchases on the spot.

The immediacy of live streaming not only creates urgency but also builds trust, as consumers can see the product in action and engage with the brand in real-time. For brands, integrating live streaming into their social commerce strategy can create a dynamic shopping experience that combines entertainment with convenience.

Challenges and Solutions for Brands Entering Social Commerce in Southeast Asia

With every opportunity comes its own set of challenges, and social commerce in Southeast Asia is no exception. However, these challenges can be easily navigated with the right strategies in place.

1. Navigating Fragmented Markets

While Southeast Asia presents immense opportunities, it is also a highly fragmented region with diverse cultures, languages, and consumer behaviours. A one-size-fits-all approach won’t work. Brands must localise their content and marketing strategies to resonate with each country's unique consumer base. For example, humour and storytelling work well in Thailand, while Indonesian consumers prefer a more community-centric approach to shopping.

But that’s just the first hurdle. The next challenge lies in ensuring a seamless customer experience.

2. Ensuring Seamless Payment and Delivery

E-commerce success in Southeast Asia also hinges on reliable payment and delivery systems. While the rise of mobile wallets like GoPay and ShopeePay has streamlined online payments, logistical challenges, particularly in more remote areas, can delay delivery and frustrate customers. Brands must partner with local logistics companies and offer multiple payment options to ensure a smooth customer experience.

By overcoming these challenges, brands will be well-positioned to succeed in Southeast Asia's thriving social commerce ecosystem.

As we look towards 2024 and beyond, Southeast Asia’s social commerce landscape is set for even greater expansion. With mobile-first consumers, the rising influence of KOLs, and the boom of live-streaming, the region presents an unparalleled opportunity for brands to innovate and grow. Platforms like InfluenConnect are redefining how brands engage with influencers by offering a diverse range of KOLs, global reach, and data-driven insights. Click here to learn more about InfluenConnect.

For more such in-depth insights, follow Comms8 where we help your brand expand into foreign markets.

At Comms8, we specialise in helping businesses leverage the power of cross-border marketing in Asia. With our expertise, we can assist you in harnessing the influence of social commerce strategies to boost your brand’s credibility and awareness. Contact us today to learn more about empowering your brand in the dynamic Southeast Asian market.