From Reebonz to AI avatars: SG startup eyes $100bn opportunity

What do Airbnb, Slack, and Nintendo have in common?

These billion-dollar businesses were built on the failures of earlier ventures, with founders learning from setbacks to eventually find success.

Photo credit: Chay_Tee / Shutterstock

Pivoting is not an uncommon strategy, and it’s not limited to iconic brands. Case in point: defunct luxury marketplace Reebonz.

Once a leading online destination for high-end goods in Singapore, Reebonz faced financial difficulties a few years after its rise. The company was delisted from Nasdaq in 2020 – just 17 months after its debut – as it failed to meet the minimum share price requirement of US$1 for over 30 consecutive days.

Reebonz entered voluntary liquidation in 2021, burdened by S$65 million in debt that it was unable to repay.

LiveCommerce Entertainment (LCE) acquired Singapore-based Reebonz’s brand and digital assets in 2022, and an evolved version of this company is now positioning itself at the intersection of two major trends: live selling and generative AI.

The connecting link

A common thread between LCE and Reebonz is serial entrepreneur Samuel Lim. A co-founder of Reebonz, he is now the CEO of LCE.

The growing popularity of live commerce in Southeast Asia, along with the emergence of TikTok Shop, has prompted LCE to become a B2B2C AI livestreaming platform, which allows brands to develop genAI avatars designed to widen their consumer reach.

The company estimates that the convergence of these technologies will unlock a US$100 billion opportunity in Asia.

A B2B2C approach makes sense for LCE, as it allows the company to avoid dealing directly with end consumers – a trend that was evident at Reebonz when it ventured into physical stores. This move was considered an “overly aggressive attempt,” as the high operational costs, including retail rent, had made it difficult for Reebonz to balance its finances.

Another key factor in Reebonz’s downfall was shifting consumer preferences, as many branded items were past-season and failed to attract influencers. LCE may be aiming to leverage the influencer trend by providing brands with genAI avatars for livestreaming to engage a more trend-conscious audience.

But can live commerce truly depend on genAI avatars, which mimic human appearance but lack genuine emotions? Or are these virtual beings just a passing trend?

AI and sell

The use of genAI avatars is on the rise in China, a market often seen as a precursor for trends in Southeast Asia.

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Beyond live commerce