Has your brand joined the digital commerce revolution yet? No? You definitely should.
Doesn’t matter how big or small a brand you are. Social Commerce is here to stay and grow at a rapid pace. New customers love making a purchase then and there. Impulse purchase drives a major chunk of social media sales.
Typically, people google it or search for the item they seek on an online shopping platform. Once they discover what they want, they analyze the product and make a purchase. But social media empower them and triggers them to make a purchase instantly.
Social Commerce in India
The social commerce sector is rising high on the wave of new shoppers from tier 2 and tier 3 regions. Influencer-led commerce and recommendation-based or suggestion-based purchases are on the rise in smaller towns, and several large players in the space have scaled up quite rapidly in social commerce space such as Meesho.
According to a report, the social commerce industry is expected to grow steadily, recording a CAGR of 62.4% during 2022-2028. India’s social commerce GMV will rise up to US$ 143,583.3 million by 2028 from US$ 8,258.8 million in 2022
There is a lot of traction in the apparel, and beauty & personal care space. Apart from that, another category that is receiving some traction is electronics.
The change is in the air. Brands have now started tying up with influencers directly to promote their products. Gen Z and the millennial population who follows these influencers and brands on social media platforms are likely to contribute the most to the growth of the sector.
The ecommerce market in India is poised to grow at a high speed due to the high adoption of social media platforms, and extensive smartphone penetration across the country.
What Makes Social Commerce So Effective?
Social commerce is a relatively new concept but has grown exponentially post-pandemic. A combination of social media and e-commerce uses social media platforms such as Facebook, Instagram, and Twitter to sell products and services directly to consumers.
So, what makes social commerce so effective:
- Purchase become part of social media experience – Social commerce empowers customers and enables them to make a purchase as part of the social media experience. It lures them in during micro-moments motivating them to make a purchase.
- Target customers via their social media activity – Traditional digital commerce drives conversion via e-commerce advertising or search engine optimization (SEO) and optimization of customer journey while Social Commerce drives conversions via interactions, influencers, or sponsored content targeting potential customers based on their social media activity.
- Doesn’t depend on traffic from searches – Social commerce across social media platforms is more effective as it’s not dependent on traffic coming from searches instead consumers are already engaged on the platform. The information known about the users is used for an algorithm to promote personalized suggestions. It makes it easier for the products or brands to feature directly on social feeds.
- Ease of Making Purchase – Traditionally retailers share their products or services directly on their social media pages. They can use high-quality images or videos to showcase products and provide product details such as pricing and shipping information. But it needs users to move out of social media platforms and switch to online retail platforms and make a purchase. Things have become easier now as it takes users directly to the payment page. Users can make purchases directly from the social media platform, often using secure payment systems. Some social media platforms also offer their own payment processing services.
- User-generated content and social sharing – Social commerce relies heavily on user-generated content and social sharing. Retailers can encourage their followers to share their products on their own social media pages, which can help to increase brand awareness and drive more sales.
- Monitor and analyse performance – Brands can regularly monitor social commerce platforms to analyze performance, measure sales, and track user engagement vis-à-vis competition. This data can be used to optimize Social Commerce performance via ecommerce intelligence and will help formulate strategies and improve results.
Overall, social commerce is a way for businesses to leverage the power of social media to reach a wider audience and drive sales. By creating engaging content, building a following, and making it easy for users to purchase products directly from social media, businesses can tap into a new revenue stream and increase their online presence.
What’s Trending In The Social Commerce Segment
- Small businesses are thriving: According to Harris Poll for Sprout Social survey, 70% of small businesses now are getting more visibility on social media and ensuring their presence on at least one social media platform. Many of their Small eCommerce businesses directly sell their products to consumers on social media.
- It’s all about convenience: Making a purchase while scrolling through social media posts is trending. The ease of shopping and convenience of making a purchase is attracting more and more users. Products from their favorite brands and retailers can now be bought without ever leaving the platform. This makes the process quick and seamless. Personalized and targeted advertising, on social media, help consumers discover products relevant to them and suit their interests & needs.
- Rise of mobile commerce: In the omni-channel retail ecosystem, businesses are focused on optimizing the customer journey and product performance across shopping platforms. Using tools to optimize not just on the eCommerce marketplace but also on their websites and social media for mobile. The high penetration of smartphones among widely distributed Indian demographics has led to a rise in mobile commerce. This pushes the popularity of social media as a shopping destination further with easier shopping on the go.
- Influencer marketing on a rise: People Trust the words of the people they follow. Influencers or personalities with a large following on social media are now not just promoting brands on social media but also selling their product on social media to a highly targeted audience. Many consumers view influencers as trusted sources of information and are more likely to follow their recommendations and make a purchase.
- Double up Social media as a shopping destination plus customer service: The use of social media for customer service can provide several benefits for businesses. It allows for more efficient and timely communication with customers. A direct medium to connect with the customers. Many businesses are now using social media platforms as a way to interact with customers provide support, and handle grievances. Tracking customer sentiments is critical to boosting brand reputation across the digital ecosystem.
Final Thoughts – The new seamless way to shop online
Social commerce involves various forms of content, such as product posts, stories, and live videos. Social commerce is growing rapidly and is expected to become a major force in the eCommerce industry in the coming years.
One of the key benefits of social commerce is the ability to reach a large audience quickly and easily. Social media platforms like Facebook and Instagram have millions of users, making them ideal for promoting products and engaging with potential customers.
Brands need to cash in by optimizing social commerce’s ability to create a seamless shopping experience. Switch to mScanIt, digital commerce intelligence to edge ahead of your competition, across the digital commerce ecosystem – Track your product performance on multiple KPIs and measure your customer sentiments to optimize the customer experience. This can help to reduce friction in the shopping process and make it easier for consumers to complete a purchase.
Tap into the power of social media, venture into the new shopping avenue to boost sales optimize brand visibility, and build trust.
Get in touch with our experts for deeper insights. Reach out to learn more!