China leads the pack
According to Goldman Sachs, China’s total e-commerce market is forecasted to reach over USD$1.7 trillion by 2020, of which social commerce is expected to take up more than 30% of the total e-commerce market. China has seen tremendous results in their ecommerce scene from the development of social commerce due to the vast advancement of their social media technology as well as the demographics of their population. With that, the demand of ecommerce will be largely coming from Asia.
What is social commerce?
Social commerce is a subset of ecommerce that leverages on social media to generate social interaction and user generated content to promote the buying and selling of products and/or services. Unlike traditional e-commerce where consumers have to sieve through chunks of information online, social commerce allows the product to “find” consumers via re-sharing and recommendations on social media instead.
How is it more superior than traditional ecommerce?
In social commerce, the consumer purchase journey is massively shortened while conversion rates are significantly raised.
Traditional ecommerce purchase journey tends to be complex as a result of consumers being redirected from one platform to another. For instance, a user clicks on a product promotion email link and is directed to the retailer’s website. However, once she enters the website, other product promotions often also appear, which distracts consumers from completing their intended purchase.
In contrast, social commerce places consumers in the driver’s seat when their purchase intent is at its peak by providing a seamless purchase experience where consumers can simply cart out on one platform.