by Rita Harnett, Global Head of Direct to Consumer & Social Commerce, Wavemaker
We are constantly seeing headlines about how Social Commerce is such a booming space and businesses need to be deploying it to reach customers ‘where they’re at’. What the headlines don’t say is that it’s actually a complex space, requiring considerable strategic thought to get right as the window of opportunity to grab the customer’s attention is so narrow, and consumer trust in social platforms is a barrier to buying for almost 1 in 4 consumers.
However, when done right, Social Commerce is the collapsed funnel by which you can discover and purchase a product all within the social platform. It has revolutionised our experience of brands, whether familiar or new, that make use of platforms to sell their products through a social first strategy.
What we are seeing is that Social Commerce successes are very polarised towards APAC and having a much slower uptake across Europe and the Americas, particularly where livestreaming is involved. So, this leads to the question; is Social Commerce ever going to really take off in the West?
A global divide
A quick look by region at time spent on mobile layered with Social Commerce uptake shows a correlation between the two with APAC and LATAM trending higher vs the world average. Speculatively this is likely to be because of these audiences’ familiarity with doing most things on mobile, for example the Chinese have been using WeChat for years, the super app that combines instant messaging, social media, and mobile payment into one, and in 2023 registered 1.1bn users. Trust and privacy concerns on social platforms are also an underlying challenge, and people unfamiliar with shopping on social platforms have concerns about featured products’ authenticity or data breaches with their payment methods.
Community converts
We know that building community on social platforms is critical. Like-minded people trust each other’s opinions, and when it comes to capturing attention leaning on demographics is not enough – let’s use the well-known example of King Charles and Ozzy Osbourne to bring this to life; they are the same age and ethnicity but there the similarity ends. Peer-to-peer recommendations are currency to brands, and the communities that form on social platforms are excited to discover what products and services are trending in their tribe.
Can Amazon make livestreaming popular in the West?
Live streaming is one of the mainstays of Social Commerce success in APAC. There’s a big appetite for engaging and immediate shopping experiences and ‘Shoppertainment’. And what’s more entertaining than a 24h live stream on TikTok pranking influencers trying to get a good night’s sleep? Wavemaker Philippines activated this playful tactic to hit the sales target of Garnier Vitamin C Serum for L’Oréal, making it an overnight success.
According to Forbes, live streaming is responsible for driving almost 20% of eCommerce sales in China while conversely in the US it is still below 5%, solidifying the view that the West is not biting. Amazon, however, has placed their bets on live streaming. They recently announced the Amazon Live channel which in collaboration with GroupM will co-develop original shoppable content. Could this be a turning point opportunity for the West?
Community-centricity is key
It is clear that to cater for western tastes, brands need to think differently about the content and tactics used in all forms of Social Commerce. Resonance is critical, and this is where community centricity needs to be dialled up; Mr Beast, American YouTuber known for his fast-paced and high-production videos which feature elaborate challenges and large giveaways, plays his part well here with a philanthropic drive which his millions of followers clearly adore. For brands it is a way of connecting brand experiences to commerce and building a stronger connection with younger audiences, who are likely to shop consistently in this way in the future.
G-Commerce could be the way in
Gaming is an interesting space which is increasingly recognised as socially focused: with over 40% of people having met a good friend or significant other through the Gaming platform, it’s definitely up there with Social and G-Commerce is hovering on the horizon. Twitch and Roblox are already blurring the lines between Gaming and Commerce in the US, so could this be the ‘way in’ to Social Commerce for this region? Walmart and e.l.f Beauty are leaning in with their respective Roblox collaborations, so it is expected more will follow with their ‘buy virtually, receive in real life’ experience.
My Positive Provocation for brands: It would be a mistake to think we can lift successes from the East and shift them to the West; the cultural significance of the content is too critical to rinse and repeat, and curation is the order of the day. Brands: take heed, as the path to successful Social Commerce requires a unique approach. What can we learn from the East? That the rewards are worth it.
