Evolving landscape of digital commerce

China's livestreaming, social commerce and quick commerce models are increasingly influencing the way consumers discover and buy products around the world, said Nielsen-IQ, a leading consumer intelligence company, in a report.

The country's live commerce market reached about $900 billion in 2025, approaching the size of the entire e-commerce market in the United States, according to the NIQ report — The Commerce Revolution: Where East Meets West.

The Asia-Pacific region accounted for about 55 percent of global e-commerce revenue, while 59 percent of consumers in the region said they already purchase products through social platforms, the report said.

The figures highlight the evolution of commerce beyond traditional online shopping into connected ecosystems where content, community, media, payments and fulfillment work together, according to the report.

The shift is visible in China's broader online retail market. Online retail sales of physical goods rose 5.2 percent year-on-year in 2025 to reach 13.1 trillion yuan ($1.94 trillion), accounting for 26.1 percent of total retail sales of consumer goods, according to the National Bureau of Statistics.

"Social and livestreaming commerce do more than reshape existing retail channels. They also generate substantial new consumption," said Jiang Zhao, an associate researcher at the Chinese Academy of International Trade and Economic Cooperation.

Jiang said content recommendations and product demonstrations encourage unplanned purchases by turning latent demand into actual spending. Direct access to consumers also allows smaller merchants, manufacturers in industrial clusters and agricultural producers to offer a wider range of products, while immersive, interactive and entertainment-driven shopping experiences strengthen spending appetite among younger consumers.

"China remains one of the world's most dynamic commerce markets," said Ryan Zhou, managing director of NIQ China. "The speed and scale of innovation in China offer important lessons for brands seeking to anticipate how commerce will evolve in other markets."

For global brands, the changes are already affecting how they market and sell in China. UK-based consumer goods maker Reckitt said e-commerce accounted for about 80 percent of its China sales in 2025, up from around 30 percent before COVID-19. The company used more than 1 million short videos and 100,000 hours of livestreaming to reach about 40 million new customers in China in 2025.

These innovative models are increasingly influencing consumer behavior, particularly across the Asia-Pacific region, according to the report.

The shift is also blurring the traditional distinction between online and offline retail, as consumers move seamlessly between physical stores, e-commerce platforms, social media and other digital channels during the purchasing process.

"The next generation of retail will be shaped by businesses that can connect consumer intelligence across physical and digital commerce," said Rachel White, president of Asia-Pacific at NIQ. "Brands that understand how consumers discover, evaluate and purchase products across every touchpoint will be better positioned to anticipate change and drive sustainable growth."

NIQ said brands would need greater visibility across every stage of the consumer journey, from product discovery and engagement to purchasing and loyalty, as commerce ecosystems become more interconnected.

The next change may be driven by artificial intelligence. Alibaba Group has integrated its Qwen AI assistant with the full Taobao product catalog, allowing users in China to browse, compare products, place orders and manage deliveries through natural-language conversations rather than keyword searches.

Success increasingly depends on understanding how retail, e-commerce, social commerce and digital channels work together rather than as separate ecosystems, the report said.

lijing2009@chinadaily.com.cn