Is social shopping changing the way people shop?

The convergence in the usage of social media by both consumers and retailers reflected these insights. For customers, using social media to make purchases is becoming a new means of doing so, and for merchants, it has evolved into an ubiquitous and rapid sales showcase.

What do we mean when we say "social shopping"? What are the difficulties?

The use of social networks to develop sales is referred to as "social shopping" or "social commerce." It's a common practice in several areas (the United States, China, etc. ), and China accounts for 52.1 percent of worldwide online trade.

Since May 2020, social media platforms such as Facebook and Instagram have integrated the ability to purchase into their applications in order to adapt to these new modes of consumption.

Since 2012, the internet shopping craze has been sweeping the globe. Take, for example, the French e-commerce website La Redoute, which includes a Facebook-linked chat facility that allows customers to speak with their Facebook friends directly on the site.

Retailers can personalize their approaches and services based on the preferences of their customers thanks to social shopping. In Europe, 93 percent of social shopping takes place on the most well-known social media platforms, such as Instagram, Facebook, and YouTube.

Snapchat, TikTok, and Pinterest, among other newer sites, are beginning to play an essential part in social commerce. Their importance is expanding due to the fact that they are utilized on a regular basis and have the power to drive purchasing behavior due to their immediacy and association with pictures. We're discussing social proof heuristics here, with influencers driving trends and consumer habits. The synergy between social shopping and influencers allow businesses to improve sales while flawlessly adapting to changing consumer expectations.

Is social shopping a temporary fad or a major shift in consumer behavior?

Brands can more easily embrace hyper-personalisation and its benefits, such as improved consumer engagement and retention, thanks to social shopping. To increase the appeal of a product, the merchant might create a narrative around it. Varying audiences with different expectations are addressed by the same product described in different ways.

The potential for sales is higher than the experience provided by the same goods in the shop window. Retailers gain the ability to address each individual via social media.

Consumers may access an almost unlimited library of products via their smartphone thanks to social shopping. It also allows you to see products more quickly, practically, and without the use of a brand filter.

The immediacy of social networks, particularly through user feedback, has resulted in greater openness surrounding items as a result of social purchasing. At the risk of instant punishment, this means better clarity for brands, as well as more readable and accessible information (boycotts, etc.)

 

Competitive innovation has sparked a consumer craze

Social shopping, a real-time consumer phenomena, exemplifies two important innovation trends:

1. Dynamic advertising - connecting advertising on social networks to an extension of an e-commerce platform. The consumer's shopping journey is frictionless and seamless. It enables a maximised customer experience. The success of the Squid Game series has led to a strong emphasis on social media for merchandising. Vans saw sales of its "white Vans Slip-On" increase by 7,800% and associated searches increased by 92%.
2. Live shopping - a kind of "online teleshopping", allows users on live platforms (Facebook Live, Live Instagram) to buy the products shown in one click. Clarins, which uses this technology in the United States and Canada, has recorded conversion rates of up to 30%.

In addition to the technological obstacles that come with integrating a social shopping strategy, brand competitiveness is on the rise. Companies must be distinctive in their messaging and in their pursuit of novelty. The expense of advertising to enable product distribution is continuing to climb, with global advertising investment up 50.3 percent by the end of 2019.

Brands must respond to a variety of consumer expectations depending on their country of origin and cultural references, as well as their age, gender, standard of living, and other factors. This audience fragmentation makes it difficult to provide a single means of assessing social buying, resulting in a large increase in associated costs.

The future of social commerce is a more tailored approach with advertising that know your size, favorite colors, favorite brands, and react to your news stream even more. As a result, purchasing and even trying out things (through AR) will become second nature to you.

But, in the future, how far will social shopping be restricted? Could we one day receive things selected by brands based on our preferences on social media if we agreed to give them a "shopping budget"?

Published on the French media JDN