Why do manufacturers bypass retailers with direct livestream sales?

Brands across Asia-Pacific are turning to factory livestreams to boost margins.

Asia-Pacific manufacturers are shifting away from traditional retail models and embracing factory livestreams to sell directly to consumers, offering steep discounts of up to 90%. The trend is driven by rising demand for authenticity, higher profit margins, and faster go-to-market strategies.

“We're witnessing a major shift in how brands connect with consumers,” said James Wilson, Partner and Head of Consumer & Retail at KPMG in Singapore. “Manufacturers are increasingly embracing direct-to-consumer models to take control of customer experience, pricing and storytelling, which allows them to build emotional loyalty with their customers, and traditional retailers [are] really struggling to keep up, especially with Gen Z.”

Live commerce has become a central strategy in this transformation. According to Wilson, it’s not just about selling—it’s about evolving how commerce works. “Live streams aren't just about selling. They're entertainment. Hosts can entertain, they engage, they build trust with viewers. They [make] the experience feel more like a show than a sales pitch,” he said.

Eucel Maximo, Director at YCP Interactive Solutions, noted that profitability is a major driver behind the shift. “One of the key factors is just more profit, because as you bypass the retailers, usually brands will get more profit and more profit margins,” he said. “That creates a lot of investment for them to go directly to the consumers.”

He added that platforms like TikTok, Lazada, and Shopee have made it easier than ever for brands to launch direct-to-consumer (DTC) channels. “The barrier to entry is really low, so there's really no risk for brands to just create and sell directly to their consumers.”

Both experts emphasised the influence of Gen Z, whose shopping preferences prioritise authenticity, transparency, and interactivity. “Gen Z are especially drawn to live streams because of their authenticity, their transparency and their immediacy. They can see how products are made, they can ask questions in real time, and they can make informed decisions,” said Wilson.

Live commerce is also proving highly effective. “Factory live streams are proving to be incredibly effective in converting Gen Z buyers,” said Wilson, citing a KPMG report showing that over 60% of Gen Z consumers in Southeast Asia regularly shop via livestream platforms.

Maximo added that livestreams significantly outperform traditional e-commerce in conversion. “Typical e-commerce sites would have two to three percent conversion rate... with a live stream, conversion rate could go up to 30% especially if the live streamer is someone popular,” he said.

In terms of products, fashion and beauty lead the pack. “That’s about 50% of the live stream sales globally,” Maximo noted. Other rising categories include electronics, food, home appliances, and collectibles.

Ultimately, the success of livestream selling lies in blending visual storytelling, immediacy, and emotional connection. As Wilson put it: “It’s visually engaging products that can be brought to life through storytelling, interactivity and emotional connection. That’s what really drives performance in livestream commerce.”