The digital landscape has witnessed a profound transformation in recent years. The convergence of social media and e-commerce has given rise to a dynamic phenomenon known as social commerce. No longer confined to brick-and-mortar stores or traditional online marketplaces, consumers now find themselves in an era where shopping is seamlessly integrated into their social interactions.

What is Social Commerce?
Social commerce involves utilising social media platforms to sell products, streamlining purchasing and enhancing convenience. Brands can establish comprehensive online storefronts on these platforms, showcasing products with detailed descriptions and recommendations.

This phenomenon results from the convergence of online retail and social interaction platforms. Initially, social-focused platforms integrate direct product sales (like in-app catalogues), while commerce-oriented websites add social shopping features (such as live streaming or group buying). Common examples include Facebook or Instagram marketplaces, where product-centric websites include social shopping elements.

Number Games on the Growth of Social Commerce
The global count of active social media users is more than 4.2 billion, presenting a significant avenue for eCommerce enterprises to connect with their desired audience and stimulate sales. Several vital statistics indicate the importance of social commerce:

1. 54% of social media users engage in product research through these platforms. This demonstrates that many social media users rely on these platforms to gather product information before purchasing.

2. A considerable 90% of Instagram users follow at least one business account. This high percentage highlights the receptiveness of Instagram users to engage with businesses on the platform, which is crucial for marketing and sales efforts.

3. Projections indicate that the total sales generated through social commerce are anticipated to reach a substantial $84.2 billion by 2024. This impressive figure showcases the rapidly growing impact of social commerce on the global economy.
Below, additional statistical data is presented to highlight several prominent trends within the domains of shopping behaviour and social media engagement:

< Trend-Influenced Shoppers: About one in three consumers prefer discovering items based on trends in their social circles. Gen Z, with 43% participation, seeks trending topics on social media. Social platforms play a role in shaping trends that impact shopping preferences.

< Rise of Influencers: Influencers wield substantial influence. 67% of social media users consider brands/products endorsed by their favourite influencers. Globally, 41% of shoppers wish for easy direct purchasing from influencers, who bridge the gap to brands and provide validation for consumers.

< Emerging Shopping Formats: New shopping formats gain traction, with 40% of global shoppers desiring live streaming for immersive shopping experiences. Additionally, 60% of global shoppers show interest in Augmented Reality-driven shopping. These formats enhance interactive product discovery and commerce.

< Shaping of the Metaverse: The metaverse concept is gaining traction. 69% of global shoppers prefer brands to have a presence in virtual worlds. Furthermore, 41% of global shoppers are intrigued by purchasing limited edition virtual products, like NFTs. Virtual realms provide an immersive environment for consumer-brand interaction.

Discovering the market potential
The world of social commerce is getting bigger and is expected to almost triple by 2025. This means more people will inevitably buy things through social media. In 2021, sales from social commerce could reach around $492 billion, and they are predicted to keep growing by about 26% each year. This would add up to a whopping $1.2 trillion by 2025.

This enormous amount is about 16.7% of all the money spent online, around $7 trillion. While China is the biggest and most advanced market for social commerce, countries like India and Brazil are also growing fast. In these places, social commerce could become more popular than traditional online shopping because of new ways people can buy things digitally.

In the United States, the amount of money spent on social commerce is expected to double, reaching $99 billion by 2025. This will be especially true for things like clothes, electronics, and home decor.

This change will affect everyone, from shoppers to sellers. It covers all sorts of things people buy and will grow much faster than regular online shopping. To make the most of it, companies need to focus on what people want and work together in new ways. For example, some big stores are teaming up with social media platforms like TikTok for live shopping events. Others, like L’Oréal and Meta, use special technology to let people try makeup using their phones on Instagram. This is just the start of something much bigger.

Deciphering the Dynamics of Social Commerce Enterprises
What sets social commerce apart? At its core, it embodies a significant power shift from corporations and brands to individuals. The ascent of social media has greatly fueled this transformation. In contrast to the anonymity commonly associated with large-scale retailers and the transactional nature of e-commerce giants, social commerce operates in spaces where people naturally spend their time. It draws strength from the authenticity and trust inherently woven into social connections. In essence, it represents a democratic retail revolution powered by the masses.

Social commerce operates through three primary avenues:
1. Content-Driven Approach: This method involves creating distinct content by brands, influencers, or individuals. This content propels genuine discovery, engagement, and action. For instance, social media users are now unearthing novel products and experiences through shoppable posts and in-app stores on platforms like Pinterest, YouTube, TikTok, Facebook, and Instagram, among others.

2. Experience-Driven Approach: In this approach, shopping is interwoven within broader experiential contexts. This is most prominently observed in live streaming, but it can extend to encompass augmented reality (AR) and virtual reality (VR) experiences or even gaming. A prime illustration of this is Obsess’s “Shop with Friends,” a concept that permits groups to explore virtual shops together.

3. Network-Driven Approach: People are capitalising on their existing social networks for purchasing and/or selling endeavours. This might entail collaborative efforts to secure bulk discounts—an approach successfully deployed by Pinduoduo in China, now boasting more active buyers than even Alibaba. Alternatively, individuals could leverage their influence and networks to drive sales and earn commissions. For instance, India’s Meesho boasts over 13 million entrepreneurs who use social media platforms like WhatsApp to connect with customers.

The Opportunity for Brands
Social Commerce is not a stand-alone sales channel but can serve multiple purposes by creating a robust consumer engagement ecosystem. From driving brand engagement and funnelling recruitment to driving repeat purchase insights. Brands must determine why they want to use a critically assessing the key benefits they want to unlock:
< Encourage Spontaneous Purchases: Prompt new and existing shoppers to discover a brand’s products without planning, boosting recruitment and purchase frequency.
< Streamline Shopping Experience: Create a seamless connection between social platforms, web commerce, physical stores, and in-app transactions, improving the process for shoppers.
< Boost Brand Awareness and Trust: Launch content that adds value or popularity to a brand, involving product/service users to share opinions and enhance brand advocacy.
< Reach Targeted Audiences: Directly engage specific shopper groups, demographics, or interest-driven communities within their social circles or through influencers.
< Gain Valuable Insights: Collect data, opinions, and feedback to refine products, enhance experiences, and tailor offerings. Also, use it as a testing ground for new products before actual development.

Successful Social Commerce Examples
Here are some social commerce success stories that represent a diverse range of businesses and social media platforms, demonstrating the versatility and potential of social commerce:
< Nike’s Snapchat Collaboration: Nike joined forces with Snapchat to introduce its Air Jordans using augmented reality. People could buy the shoes through Snapchat, creating an interactive shopping experience.
< Kylie Jenner’s Cosmetics: Kylie Jenner has built a prosperous e-commerce venture through her Instagram profile, selling her cosmetic products directly to her followers.
< Glossier’s Instagram Shopping: Glossier’s Instagram posts are designed to enable shopping right from the platform, making the buying process smoother.
< Walmart’s TikTok Collaboration: Walmart partnered with TikTok for a shoppable live stream, allowing users to purchase items featured in the stream on TikTok’s app.

Social commerce marks a shift from traditional e-commerce, reflecting changing consumer preferences. Prioritising immediacy, convenience, and personalisation, it directly links browsing with purchasing, focusing on the experience of finding and buying. This transformation offers a chance for businesses to expand e-commerce, offering improved customer experiences, increased engagement, valuable data, targeted marketing, innovation, wider reach, and cost-free research opportunities. Companies can create social commerce strategies by adopting insights from successful instances, enhancing customer experiences and profits.