To ensure a competitive edge, brands must consider strategic digital interventions as part of their marketing strategies — as social media and retail continues to amalgamate to create social commerce
As digital interactions constitute the norm, social media platforms have transformed comprehensively beyond traditional usage as communication and entertainment tools to become integral commercial tools.The retail industry is also witnessing a considerable shift owing to social commerce, a combination of social media and e-commerce. The global social commerce revenues are also supportive of this notion, as predictions estimate revenues to surpass $1.2 trillion by 2025 — indicating a paradigm shift in consumer behavior toward direct purchases through social media platforms.
While selling goods remains only one aspect; developing individualised, captivating shopping experiences by prioritising engagement, discovery, and purchase is taking precedence. Social media websites such as Meta, Instagram, and Pinterest are being integrated by brands increasingly to establish a meaningful connection with customers, by providing them with immersive content, influencer collaborations, and carefully chosen shopping experiences that affect their decisions to purchase. To ensure a competitive edge, brands must consider strategic digital interventions as part of their marketing strategies — as social media and retail continues to amalgamate to create social commerce.
Development of social business
Social commerce is a long-established buying and selling practice that is rapidly gaining global traction. Driving this change is the COVID-19 pandemic-connected digital revolution in retail and consumer behavior. After the upheaval in traditional shopping habits, digital platforms became the go-to by both consumers and brands to continue the relationship. An eMarketer forecast pegged social commerce sales in the United States at $36 billion in 2021 and $80 billion by 2025, while the global social commerce sector, it is reportedly expected to amount to over $3 trillion by 2028.
Social media sites: The future of retail
Having begun primarily as a means of social interaction and content sharing, social media platforms have evolved to become busy shopping arenas. Thanks to online commerce-enabled functionalities on Meta, Instagram, and Pinterest, customers are allowed to discover, browse, and purchase products all within the app. As an example, Instagram introduced shoppable posts in 2018, allowing marketers to tag products in their stories or posts and link them to product pages for easy purchase. The addition of shopping to Instagram brings a new competitor into the social commerce arena, letting users buy directly off of influencer and brand content.
The partnerships enable users to engage with products, draw inspiration from them, and shop quickly and easily. Meta Shops have been developed in collaboration with Instagram and Meta so small businesses can open an online store and directly connect with customers through social media feeds. The ability to personally connect with businesses and an easy stream of access to products has transformed social commerce from a phase into a standard of excellence in retail tactics.
A shift in buying behaviour
The shift in buying behavior prompted by social commerce is one major impact it has on retail. Currently, social media platforms are the central places to find new products. 54% of social media users research products on these sites before purchasing. This shift democratises brands’ outreach, enabling them to communicate directly and more intimately to prospective customers. With social commerce, companies can use consumer data, feedback, and behavior to create highly focused ad campaigns and tailored shopping experiences.Furthermore, social commerce utilises peer recommendations and influencers. A recent prominent poll revealed that 49% of consumers based their choices on recommendations made by influencers. Nowadays, influencers and brands work together strategically to increase sales; some even design whole campaigns around influencers. The emergence of “social proof” is a process whereby user-generated content, reviews, and influencer endorsements shape a brand’s online reputation and sway consumer choices.
Smartphone revolution and social commerce
Another factor driving social commerce is the popularity of smartphones for purchases. Social networking sites provide the bulk, if not all, of mobile shopping traffic, with mobile commerce projected by 2023 to constitute roughly 50% of all global e-commerce purchases. With the arrival of social networking apps, it has become easier for the customers to make impromptu purchases, as they can shop on the spot without navigating between different websites and platforms.
The future of social commerce: opportunities and challenges
While social commerce is set to continue its swift growth, there will be hurdles in doing so. One of the biggest ones is the looming question of consumer trust, which platforms and brands need to win over underlined by issues pertaining to privacy and secure payment systems. With the growing number of businesses embracing social commerce, competition will likely become more fierce, which would push brands into standing out in a crowded online market. Such challenges represent an opportunity for innovation as well. Virtual reality (VR) and augmented reality (AR) are likely to be the game-changers in retailing in the future soon, augmenting the overall shopping experience. These features will allow AR users to virtually try on products, be it dresses or cosmetic products, before purchasing. With such technology, a comeuppance is underway in the customer experience, integrating extremely interactive and exciting ways for them to browse and buy products online, besides in brick-and-mortar locations.
Social commerce is changing the way customers shop, discover brands, and interact with products-it’s not just a change in retail strategies. As further advances in social platforms blur the lines between social networking and e-commerce, it has become critical for businesses to embrace social commerce; no choice remains. The players in the competitive retail commercial arena are set to provide changed experiences to customers, whereby new digital shopping truncate the sales process and expand customer loyalty.
