The gap between Asian live commerce penetration (30-40%) and US (single digits) is enormous but closing. Live commerce offers sellers zero-cost setup with a global audience versus expensive brick-and-mortar with limited reach. ✦ AI generated
Grant LaFontaine · a16z Podcast · 2026-08-19 · original ↗
starts at this moment · 15:12
“Live commerce is over a third of all commerce in Asia. What is it in the US today? Is there any reason why you don't think that gap could close over time?”
30 to 40% of all commerce is live commerce in China. What is it in the US today? Single digits. I think it's clearly going to close. It's just a richer way in which to sell and build a business. If you're a fashion brand or store, you could go and set up a brick-and-mortar shop on Fifth Avenue that cost you millions of dollars and you're restricted to a set of people who come to your shop at 9 to 5. On Whatnot, you can set up for $0 and you can have an entirely global audience that is unbounded.
verbatim transcript · starts at 15:12
14:52your friend, at least, you know, when I was growing up, hang out with my friends, walk around the mall, have some fun. You know, many times I wouldn't purchase something, just go there for an experience. I am struck by obviously we're longtime investors with you and so you know this is this is not new news to us but it is striking when I describe it to other people how big the market for
15:12this is and how big whatnot actually is so you know you talked about Asia live commerce I think the latest is it's over a third of all commerce in Asia is that right >> yeah I've heard anywhere about 30 to 40% of all commerce is is live commerce in in China >> yeah and then what is what is it in the US today? >> Oh, I I mean sing single digits. Really?
15:34>> Single digits. And do you think there's any is there any reason why you don't think that that gap could close over time? >> No, I think it's it's clearly going to close. Um it's just a richer way in which to to sell and build a business. Um and it's it's just more efficient. So, you know, um if you're a fashion brand or store, you could go and
15:59set up a brick-andmortar shop on, I don't know, pick a famous streetth Fifth Avenue that cost you millions of dollars and and rent >> and you're restricted to a set of people who come to your shop at a, you know, 9 to5 on >> um whoever is in New York City. [snorts] Um and like that's a great experience. You can feel it. You can talk to people.
16:17You can discover things one whatnot. you can set up for $0 and you can have an entirely global audience that is, you know, unbounded. >> Yeah. >> And so I think that that value prop means if you're a business um you know selling consumer goods, uh I think you're eventually going to get into live commerce. I don't think you're going to be able to ignore it. I think you're
16:37going to be able to bring in lots of audience and that's why you see that 30 or 40% number uh in China. >> Yeah. So it's like the if you think about just sort of marketplace dynamics and the network effect the supply side is so compelling because it's zero it's effectively zero cost and with a very compelling supply uh dynamic lots of sellers that that drives demand right
17:00>> yeah it makes total sense I mean the numbers are just staggering you said it's about a trillion dollars in in Asia um that's a huge number I looked it up before this so uh I think US e-commerce is about a trillion too if I have that roughly right. Um, and one of the historical knocks I've heard people say about whatnot is well, you know, Etsy is