Social commerce revolution
January 3, 2022
Learn how the democratization of tech via LCNC platforms is unleashing a new wave of creativity.
What is social commerce?
Social commerce is when a person’s entire shopping experience—from product discovery to the check-out process—takes place on a social media platform.
Who should be exploring or using social commerce?
While the opportunity is significant for large businesses, individuals and smaller brands also stand to benefit. More than half (59%) of social buyers surveyed said they are more likely to support small and medium-sized businesses through social commerce than when shopping through e-commerce websites. 63% said they are more likely to buy from the same seller again, showing the benefits of social commerce in building loyalty and driving repeat purchases.
Why is social commerce so popular?
With the average user now spending 2.5 hours a day on social media, social platforms are rapidly becoming the gateway to the internet for many people: for communication, news, entertainment, etc. Now they’re starting to become a destination for commerce as well. What makes it unique to other forms of digital commerce is the social connections that underpin the experience, whether it be an influencer or brand you follow, or a recommendation from a friend or family member. The authenticity and, therefore, trust that these relationships embody create a different type of influence, engagement, and ultimately, a different type of experience that’s in increasingly high demand from today’s shoppers.
Social Commerce growth is predicted to be driven primarily by Gen Z and Millennial social media users, accounting for 62% of global social commerce spend by 2025. However, all age groups are using social commerce.
What platform is best for social commerce?
The best Social Commerce strategies are those that are led by consumer-first thinking. By identifying the platforms on which your consumers are engaging, you have identified your Social Commerce platform(s) to consider.
Why is social commerce so successful in China?
China is a mobile-first society, where many individuals went straight to mobile without ever purchasing computers, which means a greater number of older Asian users are present on social media platforms than in the West.
In addition, Asia is home to what could be described as "super apps" — major platforms that serve as one-stop hubs for various needs ranging from social media and messaging to payments, shopping, and travel. This makes it much easier for Asian users to adopt social commerce.
This isn’t the case in the West, where users rely on multiple individual apps and integration features for their various needs, which means adoption of social commerce hasn’t been as fast.