Over the past nine years, MENA super-apps like Careem, Noon, and Talabat, as well as Chinese platforms such as Taobao Live, Douyin, and Xiaohongshu have developed a new paradigm of online retail — one in which sales are driven primarily by live streams, entertaining content, and real-time interaction rather than static product listings. The live commerce market continues to grow annually and is projected to double in size by 2031.
This new format of online retail is gradually expanding across global markets, with the MENA region showing particular receptivity. In the UAE, 72% of shoppers report participating in live shopping, compared to 40% in the United States, 35% in the UK, and 26% in Germany.
Here is a breakdown of the defining features of live commerce that are transforming the way consumers interact with brands.
1. Video Commerce Is the New Storefront
Static product catalogs are giving way to dynamic video storytelling. Instead of scrolling through product pages, consumers discover new items through feeds of entertaining content. Short-form videos, influencer challenges, and interactive live streams with embedded purchase mechanisms create a seamless shopping experience that feels more like an adventure and less like a chore.
Whether it’s primarily a shopping platform, like Taobao, a social platform, like Douyin (TikTok), or a hybrid of both, like Xiaohongshu, they all succeed at emotionally engaging and inspiring consumers, guiding them toward quick and convenient purchase mechanisms. According to McKinsey, Chinese live-commerce conversion rates, in some cases, approach 30% — up to ten times higher than in conventional e-commerce.
2. Livestreams Have Become Full-Funnel Sales Channels
What began as a modest experiment in May 2016, when Alibaba launched Taobao Live to merge live video streaming with e-commerce, has since evolved into a dominant sales engine in China. Today, livestreaming in China is firmly entrenched in core retail strategies. During each session, hosts demonstrate products, answer viewer questions, and trigger instant purchases. Data shows that 87% of Chinese consumers participate in live shopping at least once a month, mostly on weekend evenings. Similar trend is growing in the UAE and MENA market. Viewers are drawn to the themed livestreams — product drops, expert Q&As, or lifestyle demos that combine storytelling, urgency, and interactivity, using live polls, giveaways, or limited-time offers to boost engagement.
3. Social Validation Outperforms Traditional Advertising
User-generated content (UGC) proves to be the most trusted form of advertising, and no platform leverages UGC-driven sales better than Xiaohongshu (RED), an ecosystem where products gain exposure through peer recommendations and AI-driven content matching. The platform excels at cultivating authenticity and trust, with 80% of all content being user-generated. In early 2024, its Community Buy feature increased group-purchase orders by 187%, illustrating how social validation can directly translate into commercial growth.
4. AI-Features Redefine the Industry
China’s e-commerce giants, such as Alibaba and JD.com, are pioneering AI integration across the retail sector, setting a global benchmark for innovation. These platforms leverage AI for personalized product recommendations, dynamic pricing, and predictive logistics, resulting in improved customer experiences and operational efficiencies. Alibaba resolves the majority of customer service inquiries via AI chatbots, while JD.com operates fully automated warehouses and employs autonomous delivery vehicles.
AI chat assistants maintain high conversion rates and boost average order values by 20–35% through personalized recommendations, while simultaneously helping companies reduce customer service costs by 15–40%
5. The Rise of the Super App Ecosystem
MENA’s super-apps together with Chinese e-commerce platforms are adopting ecosystem-based models that go beyond traditional online stores. Careem and Talabat integrate messaging, content, payments, deliveries, and services in a single platform. Brands create mini-stores within these ecosystems, enabling discovery, purchase, and post-sale support without leaving the app. This approach reduces friction and keeps shopping within users’ everyday digital environments, illustrating a broader trend toward fully integrated commerce experiences.
