Many times, new tech trends emerge earlier in Asia than in the US. Right now, social e-commerce has a significant presence in Asia, and the US retailers need to get ahead of the trend before it becomes the new norm here.
Social eCommerce is the business of selling goods online through social networks. The goal of this type of commerce is for high-volume transactions as opposed to just making intermittent small sales via online platforms.
Currently in China, social eCommerce now accounts for over 13% of all online sales compared to just 4.3% in the US. This growth is driven by two business models; group sales, and live eCommerce.
While this concept may not be entirely new, Asian businesses are seeing incredible results using these models. Companies who sell products that didn't typically work well for direct eCommerce sales are seeing a tremendous response with these new models.
Groups can be formed by friends and families or shoppers can browse to find an existing group that needs another member. By purchasing in a group and shipping to one location, buyers receive a discount for purchasing large quantities. Group sales have eliminated packing and shipping small individual orders that would otherwise be costly with delivery to each household.
The live stream eCommerce model is similar in concept of TV shopping channels but has unique characteristics and appeal. The hosts are selected to become elite influencers as they leverage their talents to sell in volume to huge virtual communities of followers.
As social eCommerce is still in the early stages in Asia, new hybrid forms are being invented and have seen recent growth partly due to the pandemic forcing many activities online.
The momentum behind this shopping phenomenon can't be ignored. Consumers in Asia are embracing social e-commerce and speaking with their wallets. It is only a matter of time before the surge in social e-commerce will expand to the US and worldwide. Contact Fourmangos today for more information on social eCommerce or to find out how your business can start preparing for this new way to reach your customer