👟STATUS OF SOCIALCOMMERCEREPORT🎁
📲2021

CONTENTS
What is social commerce

3Gen Z & Millennials

5Market Size & Survey

8

The Online Shopping Experience

14Apps, platforms and more

19

Social Commerce in China

29

Influencer Marketing + Social Commerce41

Buy Now Pay Later

44Much more than just buying and selling

WHAT IS SOCIALCOMMERCE?
A fast-growing segment in the US
Social commerce is the process of selling products
directly on social media. The entire shopping
experience, from product discovery and research to thecheckout process, can happen without the consumerhaving to leave the social media platform.
Features like the “buy now” button or autofill payments
remove the friction from the consumer journey, thus
making the whole process much faster.
All-in platforms are also known as “Super Apps” stems
from the example of China, the most advanced social
commerce market in the world.

E-COMMERCEVSSOCIAL COMMERCE
E-commerce is buying and selling goods via a website
or a dedicated app.
Social Commerce is about selling goods via Social
Media, without leaving the social media app.

With Social Commerce, the checkout is within the appand the customer doesn’t need a third-party site.
Overall, with Social Commerce, brands can interact
more with customers and set personalized discounts.
The algorithm itself showcases products and brands
that the customer is more likely to purchase.

Social commerce isNOT e-commerceBorn between 1997 and 2015

WHO IS GEN Z AND HOW ARE
THEY SHAPING THE FUTURE?
150 billion spendingpower

Gen Z wants the best deal when it
comes to price and value.
62% expect to shop online more
after the pandemic than they didbefore.

They know what they
wantBrands’ transparency and taking a
position on social issues are not anoption when it comes to Gen Z.
They expect apps and Influencers toalready know what they’re looking
for. This also includes no glitches,easy and free returns, and reachablecontent.

The internet is a trusted place
97% of Gen Z consumers use social
media as their top source ofshopping inspiration.
40% follow brands they like onsocial media.
68% of Gen Z customers read orwatch at least three reviews before
a first-time purchase.

“Even if we, Gen Z, know how to buy
directly in-app without leaving a certainsocial media, I feel that the majority of thetime we prefer to save a specific item
seen on a social media post and visit thebrand website to gather more
information such as brand values,
customers’ reviews, and also we want touse desktop browser extensions like
Honey to find potential discounts!

Natalie Hey-Shipton

Student at University of California, Berkeley

TARGET N.2

MILLENNIALS
born between 1980 and 1997
Millennials are the first digital natives and they
are 72 million in the US.
They grew up with technology and ICT thatmade them digital entrepreneurs. They haveconsistent spending power and they seek
experiences even when they are buying
something online (and they buy A LOT online!)
Just like Gen Z, they want brands to betransparent and authentic.

MARKET SIZEThe North American market held a substantial shareof the global market demand in 2020

“The pandemic has accelerated theshift away from physical stores todigital shopping by roughly fiveyears.”

The global Social Commerce Market that wasestimated at $89.4 Billion in the year 2020, is
projected to reach $604.5 Billion by 2027,
growing at a CAGR of 31.4% over the period
from 2020 to 2027.

THE US MARKETThe number of US social commerce buyers grew by 25.2% to 80.1
million in 2020 and will grow another 12.9% to 90.4 million in 2021.
US retail social commerce sales will rise by 34.8% to $36.09 billion thisyear, representing 4.3% of all retail e-commerce sales.
Apparel/accessories remain the largest category for social commerce,but consumer electronics, cosmetics, home decor, and consumer goods
are also key players.

We did a little survey“Have you ever purchased at least one
item on your smartphone thanks tosocial media brands’ posts and/orinfluencers’ content?”

350+ American Gen-Z and Millennials answered that…

“Overall, What do you prefer?”

Online Shopping
No
38%
Yes
62%

In-store Shopping

Both

38,05

32,08

29,56

“Social commerce will help brands
increase their mobile conversion rates
and decrease cart abandonment rates
and will support influencers in terms ofadditional revenue streams thanks toaffiliate fees when they sell third-party
items and better margins on their ownmerchandising, products, and services.
Our survey shows that there are a biginterest and potential in social commerceand I am personally really curious to see
its future.

Alessandro Bogliari

CEO & Co-Founder of The Influencer Marketing Factory

“What type of product do you buy
more thanks to social media brands’
post and/or influencers’ content? “
50

37,541,15

25
22,92
15,1

12,5

8,85
011,46
2,08

ApparelBeauty care/ Make-up

TechFood and bev

Home Products

OtherCheck out the full survey infographic
LEARN MORE

THE ONLINESHOPPING
EXPERIENCE

THE FLOW OF PURCHASE

BrowseOpen theproductAdd to cart

Pay

Le t ’s h a v e a l o o k o n t h e

DRIVING FACTORS

A growing number of social media
platforms and advertising

Growth of Gen Z population

Ease of shopping on social media

The shopping experiencechanges for both parties
After Covid-19 companies and brands are trying tofind new ways to acquire and retain customers.
Social commerce allows customers to:- interact with the brand- read comments- share the product with friends and family for a quick
consult.
Before the buy button feature, brands used social
media as a shop window and as a way to communicate
new collections or advertise. Now you can visit a
brand’s profile and shop products directly.
This is a great opportunity for companies:
they can easily collect data and have direct feedback
on what customers like more. Brands can takeadvantage of what these social media apps are alreadyoffering. Live Sessions, Direct Messaging,
Influencers, and so on.

Sooo…

WHY SOCIAL COMMERCE?

Reduces the risks of abandoned carts

Personalized shopping experience

Augmented Reality

Reliable data and feedbacks

Macro/Micro-Influencers

Personalized discounts

Live-streaming

Removes friction

Money Money MoneyThat’s where Gen Z and Millennials areGreat opportunity for small businesses

Build a strong relationship with customers

APPS,
PLATFORMS
AND MORE

MAIN SOCIAL COMMERCE
PLATFORMS

INSTAGRAMTIKTOKPINTERESTFACEBOOK SHOP

Customers can “Add tocart ” or “ View onWebsite” products ofbrands they follow orthey find in the Shop
section. Shoppable story
stickers and “swipe-ups”
are also an option.

Partnered with Shopify
to enable in-app
purchases in Octoberand revealed that will
introduce shoppable
live streams andaffiliate links forinfluencers.

With Buyable Pins
(only available in theU.S.) customers caneasily buy products
directly from the app
with the “Buy It ”
button.

Sellers can create their
online store (like onInstagram) and customers
can buy directly on the app
with the buy button or asks
questions via Whatsapp,
Messenger and Instagram.
The Live feature to sell
products will be availablesoon.

#TikTokmademebuyit#Amazonfinds
The hashtag #tiktokmademebuyit has morethan 1.5 Billion views on TikTok and thehashtag #amazonfinds more than 6.7 billion
views. There are a lot of products that every
week go viral that you didn’t know you
needed in your life until they pop up on yourFor You page.

From beauty products tohome decor the list of cool and usefulproducts is endless!

VIRAL VIDEO=

According to market research firm Kantar,
83% of consumers browsing TikTok say
seeing trending content has inspired them tomake a purchase.
Influencers usually post (affiliate) links ontheir main accounts making it easier for
their followers to find products.

These leggings went viral after the@Hannahschlenker video. Don’t worry
she also got her brand deal after theysold out.

Ads are now more shoppable

Shopify x TikTok
In October Shopify partnered with TikTok.
Merchants can now target and create Ads directlyfrom the Shopify App.
Shopify also announced that they will collaborate to
test new commerce features in the next few months.
Both companies support Black Businesses bycreating a campaign with the hashtag#ShopBlack Hashtag Challenge to support them.

Photo Source: Shopify

TRY ON BEFORE YOU BUY

SNAPCHAT AND
PINTERESTAUGMENTED REALITY INTEGRATION

Both Pinterest and Snapchat are using AR technology towin at Social Commerce by letting users try products on
before they buy them.
Over 170 million Snapchatters engage with AR daily andcreators can build their filter with Lens Studio.
Snapchat already partnered with Gucci, to allow customers
to test its sneakers.

Brands and customers
can engage on a newlevel!

BEAUTY PRODUCTS TO THE WIN
With Pinterest Lens users can discover newproducts and try lipsticks on or eyeshadows(by skin tone too) from different brands
before they buy it.
It’s easy to save your favorites with just a pin!

Photo Source: Pinterest

“Over the past years, we have seen a progressive shift inconsumer shopping habits that switched heavily frombrick and mortar to e-commerce. Social Media has now
taken a large piece of the e-commerce space withdirect purchasing on platforms like FB, IG, and soon
TikTok. We can see that consumers appreciate theinteractive component of social commerce and eventhough it’s proven that most users are not as likely to“engage” with brand content, what has grabbed
consumers’ interest is the ability to browse, share andbuy products within these different digital platforms. I
believe it’s that curiosity that will continue to drive thedemand for social commerce shopping and sales. Thisis a very lucrative channel for all brands not just in theBeauty/Skincare world.
Pavllo Zengo

Brand Storyteller @FOREO

Teespring integration

YOUTUBE AND TWITCH
YOU ALREADY KNOW THE DRILLMERCH =
With the Teespring Integration, the creators fromYouTube and Twitch can easily sell merchandise.
Creators’ products appear beneath the video on themerchandise shelf. Teespring is 100% free and creators
keep 100% of the profit.

Photo Source: Tubefilter

YouTube recently added a new feature called “applause”
where fans can donate to creators.

Twitch hosts a live shopping experience to celebrate Prime Day of
Amazon with “Twitch Sells Out” where streamers sell products.

Photo Source: Digital Music News

More

SOCIAL COMMERCE PLATFORMS

NTWRK
Exclusive drops forstreetwear lovers that
get notified when thenew collection isavailable.

SHOPLOOP BY
GOOGLENow under GoogleShopping

Users scroll through ahome with videos wherecreators show buyableproducts.

SHOP SHOPS
The Live-streaming
platform from retail stores
located around the world.
This app is a great exampleof how small businesses
can benefit from Livestream
shopping.

AMAZON LIVECREATOR
Allows sellers to promote
live streaming products
and customers can buy
them. They can interact
with a live chat too.

SOCIALCOMMERCE
IN CHINA

THE CHINESE MARKET
China is far ahead when it comes to selling
goods online. Young consumers are the main
segment. In 2020 Social Commerce grew by44.1% and eMarketer ’s predicts that will growanother 35.5% in 2021, reaching 363.26 billion.
A majority of social buyers in China are shopping
via their mobile devices. And many digital
storefronts start on mobile layouts—whereas, in theUS, the inverse is true. Online retailers often focus
on developing a site first and then transition tomobile.

LIVE PURCHASE

WHAT IS LIVE-STREAMINGSHOPPING?
Livestream is a popular way to shop online in China and it’s anemerging trend in the US as well.
Yes, like the good old QVC, but better! Live stream customers canjoin from anywhere with a phone or tablet and interact with theseller.
In China, you can buy anything, from farmers’ goods to luxury
pieces. In 2019 the live stream market in China was 66 billion and in2020 reached 170 billion.
Influencers are already a great partner when it comes to social
commerce, and with the rising of live-streaming, they can help
brands to generate high profits and user engagement, all in aunique experience!

LIVE-STREAMING SHOPPING
Chinese don’t just buy things…
They ask for informations on the sellers’ live streaming

One of the most famous platform is Taobao
Viewers can comment and buy the product in a fewclicks

REVIEWS

ARE

I-M-P-O-R-T-A-N-T

They rely heavily on them!

Don’t forget the spice
Discounts are key factors when it comes to purchase“China has pioneered social commerce for years
now. In the local Chinese market barriers between
traditional content platforms, social networks, andmarketplaces have broken down. The
infrastructure is in place to make commerce
happen almost anywhere. Discovery,
consideration, and purchase have become deeplyintertwined with entertainment and education.
Customers are frequently incentivized to recruit
friends and share in the buying process. Trust isdriven by the vast and deep ecosystem of niche
KOLs and influencers.

Matthew Brennan

Author of Attention FactoryFASHION + FESTIVALS =“Shop at the speed ofculture”
FOMO IS KEY TO SUCCESSOn NTWRK you can shop exclusive drops for
Shoes, Homegoods, Apparel, Art, and more.
Stocks are limited and you can find them online
for a massive markup days after the drop.

VIRTUAL FESTIVALS

Digital events and musical performances are thenew normal after Covid-19.
LIVE-STREAMING SHOWS

Products are often showcased through shows
hosted by celebrities or influencers.

MAIN CHINA’S SOCIAL COMMERCE
PLATFORMSWECHATUsers can not only chatbut also pay anywhere inChina with WeChat Pay.
The app also includes
Mini-programs, “subapplications” built
within the app.

DOUYINXIAOHONGSHUPINDUODUOThe Chinese version ofTikTok allows users toclick on product links andshop inside the app.
Live-streaming and miniprograms are also
integrated. The app
recently launched the ewallet “Douyin Pay”.

Also known as “little red book”,
this is an all-user-generated
content app where customers candiscover and share products. It ’s
a lifestyle-focused social
commerce, users can placeorders and give reviews. It
includes also live-streaming andmini-programs. Users can evenadd stories with the function“HEY”.

Groups of friends or even strangers
can band together to buy something
for a lower price than if they had
purchased it individually on their own.
These apps in China have powerfulalgorithms, ads are not shown basedon past searches or purchases,
instead predict trends to determine
what users want to buy, based onwhat they've been reading, saving,and commenting on.

Brands and KOL’s use mini-programs
to grow their business and boost sales

MINI-PROGRAMS ARE MEGA USEFUL
WeChat, developed by the Chinese company Tencent isused by almost 1.2 billion users every month in China.
Not only to message friends and family but also because
it includes Mini-Programs, which are apps in the app.
Users don’t need to download an additional app to shop
online, translate, or play a game!

That ’s why WeChat is called “Super App” and it ’s one of
the most used Apps in the world.

EAT

SECOND HAND
SHOPPING

HOUSE
SHOPPINGENTERTAINMENTSHOPPING JUSTFOR WOMENKEY OPINION LEADERS (KOLs)
The most trusted
KOLs are mostly from tier 1 or 2 cities
Women from lower-tier cities seethem as their close friend that isgiving good advice

When shopping is mixed withentertainment:

Photo Source: China Daily

“China’s ability to accelerate change and live the future
before the rest of the world is closely connected with its
digital vision. But in a world with an unlimited offering,
curation is becoming increasingly necessary… hence thesuccess of the KOL! The Chinese leading influencers built
their image and reputation on the ability to authenticallyinterpret the domestic demand, and channel the consumer
voice with the brand to build a stronger offering, with adirect-to-consumer approach. This value is extremely
precious for the international luxury brands, that aredepending on Asia for over 50% of their overall sales.
But in the reputation power game, who will definitely win
the Chinese consumers’ hearts? Will KOLs - driving social
commerce - make brands unnecessary.

Anna Dato

Marketing Manager Asia for Intercos

TREND ALERTIn the USA too
A trend that is here to stay?
Real-time feedback and insight
Customers can join the event from anywhereLive streamers can show more than a productLive poll to engage with customers
Interaction is KEY!
It’s fun and exciting for both customers and the hostGrows your audience
New customers!

INFLUENCER
MARKETING+ SOCIALCOMMERCE

“90% of respondents believe influencer marketing to bean effective form of marketing” and “72% believe that thequality of customers from influencer marketing
campaigns is better than other marketing types.”
In a survey conducted by:Influencers can help brands achievedifferent marketing goals!

The Influencer Marketing Hub.

Brand Awareness
Sales… Duh!
Followers and likes.. in one word: engagement!
High-quality content

And much more

MICRO-INFLUENCER ARE JUST AS IMPORTANT

INFLUENCERS ARE DRIVINGSOCIAL COMMERCE
When Influencers become brands, they are even more trusted bytheir followers, who are always looking for inspiration and the latesttrends.

With shoppable stories, and posts it’s easy to understand how
important they are to generate profits and brand awareness.

We are not only talking about Mega influencers but also Micro, whousually have a great engagement rate and a lot of trust from theirfollowers.

BUY
NOWPAYLATER

“The global BNPL platforms
market was valued at $7.3
billion in 2019, and is
expected to reach over $33.6
billion by 2027”
These services are becoming popular among theonline shopping platforms because they let

BUY NOW PAY LATER
Most Used Servicescustomers split payments without paying interest

BNPL grows with digital shopping
Main target: Gen Z and Millennials
Risks: Overspending

It’s not a credit card:
BNPL is about the single transaction
The pandemic pushed consumers to findalternative ways to finance their spending

READY FOR YOUR NEXT INFLUENCER
MARKETING CAMPAIGN?

GET IN TOUCH!

Resources:
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https://deliverr.com/blog/social-commerce/
https://www.salesforce.com/blog/how-millennials-and-gen-z-are-different/
https://www.forbes.com/sites/shephyken/2020/10/18/gen-z-your-most-influential-customers/?sh=74cdd42d10ef
http://web.archive.org/web/20201101134440/https://www.forbes.com/sites/jiawertz/2020/09/30/common-challenges-for-companies-expanding-their-ecommerce-business-during-the-pandemic/
https://www.grandviewresearch.com/industry-analysis/social-commerce-market
https://influencermarketinghub.com/influencer-marketing-benchmark-report-2020/
https://www.prnewswire.com/news-releases/assessment-of-the-social-commerce-industry-2020-2027-and-impact-of-covid-19---mobiles-segment-readjusted-toa-revised-39-2-cagr-for-the-next-7-year-period-301125465.html
https://thentwrk.com
https://stories.pinduoduo-global.com/articles/explainer-the-differences-between-pinduoduos-team-purchase-model-and-group-buying-sites
https://www.ibm.com/industries/retailhttps://www.coherentmarketinsights.com/insight/request-pdf/4013