Social commerce is one of the trends that have most been accelerated by the pandemic. And in fact, it is inevitably linked to other important changes happening right now: the rise of DTC (Direct-to-Consumer) economy and the shift towards Omnichannel branded experiences.

As content specialists, Content2Sell keeps a close eye on the trending ways for brands to succeed in the promotion and sale of their products.

Get ready for Livestream and Social Commerce

How did we get here?

Not only the digital population doesn’t stop increasing, but it also simply won’t. The post-pandemic era has changed consumer behavior and has taken brands to better understand their profiles and expectations. Lockdowns, closed brick and mortar retail shops, and fear have set a new scene in which new ways to approach potential customers have become absolutely necessary.

Thus, brands are increasingly interested in reaching younger, digital-native demographic segments – the consumers of the near future – for the sake of their business health. Keep also in mind that video and live streams are among the most consumed content. Just check the results of the survey conducted by Livestream and New York Magazine.

China is was leading the way

Livestreaming and Social Commerce are quite new, and yet they are defining the future of e-commerce.

As the #1 country in live streaming and Social Commerce viewers, China is still leading the way and pointing the path to follow. Partly thanks to the so-called Super Apps operating in China, which have centralized most of user interaction, with brands and between them. The numbers are staggering, and yet Europe and the United States are far from that.

But China’s numbers are just one indicator among others worth keeping an eye on. For instance, in Southeastern Asia Social Media is the first channel for online product discovery, and 1 of every 5 dollars is spent on Social Media (Bain & Company, 2021).

Reasons to take Social Commerce seriously

Livestreaming has become a lucrative shopping channel in China with 425 million users only in 2019.

• 30% of online purchases in the USA happen through Social Media (eMarketer, 2021)
• 50% of online purchases in China happen through Social Media, making 10 times more revenue than in the USA (eMarketer, 2021).
• China accounts 50% of all retail sales (eMarketer, 2021).
• In fact, 49% of brands now plan to invest more in Social Commerce (Shopify, 2021)
• 61% growth in livestream selling app installs

With all these numbers on the table, the words of Instagram’s Product Head should surprise nobody:

Instagram is not a photo-sharing app anymore.

Adam Mosseri, Instagram’s Product Head

Shopify has recently teamed up with TikTok, one of the most important actors in the merge of entertainment and E-commerce. Especially after the launch of TikTok Live. This only confirms Shopify’s bet on Livestream and Social Commerce, not to mention one more reason for brands to consider Shopify.

But at the same time, more apps are appearing and moving towards e-commerce. Especially Social Media apps to become e-commerce platforms, just like Instagram did when Instagram Live Shopping was launched. Popshop Live and Whatnot appear as an alternative for small businesses to sell products directly on live streams.
Platforms focused on beauty products like Supergreat or Galaxy Live are also on the rise. Of course, Amazon could not stay out and launched Amazon Live.

Advantages of using Social Commerce

Collaboration with existing players is easier and cheaper than starting from scratch.
Cost reduction, monetization, reach existing audiences, a smoother customer journey… The advantages seem indisputable.

• Live chat and Video. Higher conversion (up to 30% according to McKenzie, that’s 10 times a normal rate)
• Lower costs. Brick and mortar retailers have thinner margins and higher costs
• Lower returns. Consumers know exactly what they will get; they get to ask questions about what is relevant to them and have them answered in real-time.

Steps to get on the Social Commerce bandwagon

Omnichannel calls for coherence and alignment with core values, as much as it does for seamless 1-to-1 communication between the brand and the user.

• Work on your branding consistency across all channels.
• Influencers will become even more important to attract and aggregate your target audiences.
• Centralize your contact and customer service.
• Make sure your videos have a very good quality*.

*According to TechRadar, more than 50% of live streaming viewers leave low-quality streams within 90 seconds.

Wrapping it up

Social Media also helps brands – when used correctly – to better stand up for their purposes and convictions. And that is another game-changer in today’s world, where consumers are looking for authenticity, diversity, and inclusiveness.

However, this also means that a closer and warmer approach to their audiences is needed. Furthermore, consumers appreciate transparency. So, get ready to start producing Q&A videos, Behind-the-scenes videos to show your everyday life, live streaming, and short videos to prove both your product’s quality and your brand’s values.

According to Survey Monkey’s research, 55% of consumers state they are more likely to purchase from brands with shared values. So, live streaming and Social Commerce are rapidly growing trends we should probably stop calling just a trend. It is happening, the numbers are unquestionable and, of course, consumers’ behavior is confirming it.

Need further advice? Just schedule a call with us, and let’s talk about your project.