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The Age of Social Commerce
Moving into a time of socially engaged shopping experience
What is Social Commerce?
Simply put, the process of making purchases directly on social
media platforms
It can be primarily classified into two groups:
1. Integrates the commerce on an existing social media platform
2. Uses the principles of social connections to create a referral-based commerce set-up
https://www.youtube.com/watch?time_continue=89&v=JRK7R
jOB3Bk&feature=emb_title
Is Social Commerce a new thing?
YES and NO
YES, because the new form of social commerce is a completely new model
NO, because a marketplace kind of commerce has been present for quite some
time (early 2009)
From Marketplace…
…to Shop/Stores
And THIS as the game changer
Why the sudden buzz?
Pandemic Times:
Policy Decisions:
Is it big enough?
( man is a social animal).
Underlying force making this trend?
Evolving socio-cultural & psychological factors
Aspects fuelling the growth of social commerce
CONSUMPTION
• A playful game
• Exploration of
desires
• Expression of
ambition
• Potent tool of
identity curation
IDENTITY
• An ongoing
aggregation
exercise
• Multi-faceted
expression
• Simultaneous
broadcasting &
consumption
CONNECTIONS
• Easy, accessible,
desirable
• Device of
shared/collective
experiences
• An otherwise
diverse and
distributed Content
seamlessly
collapsing on to a
timeline/s
Accessible smart phones. Reduced data costs. Audio driven engagement apps. Local language ready tech. Digital money
World of Consumption – an engaging, fun, entertaining simulation
Consumers both as players as well as the played
TRANSIENT ABUNDANCE
OUTSOURCED PERFORMANCE
Where frequency is the success metric
More. More times.
And ‘Aur Dikhao’ the operative mantra
Professional Consumers:
Building a consumption fueled identity/Professions/Careers/Celebrity-hood.. Star
ness..
Forever, indexing Aspirations, as they stroll through virtual timelines
Curation of what needs to be bought, tried, seen and most importantly lived
Not surprising then, is that,
Identity becomes an ongoing aggregation exercise
A plethora of finely sliced labels to borrow from
Simulcasting…
…as well as consuming one’s identity
Putting a disproportionate focus on external validation
In this attempt, reveling in multiple dimensions of the self
Borrowed from the multiple worlds, we interact with
Passion
Profession
Content
Food
Friends
Consumpt
ion
At the same time,
a shift in the context of connections at basal level, given
the changing imagination of ourselves
Social connections are becoming easy…
Social media has enabled every fan to transition into
‘friends’, which, in turn has become the very currency of
new celebrityhood
… accessible …
… and desirable
‘Friendship’ itself has become a device for collective/shared
experiences
Community shared cycles
Connections get forged into a ‘community’ providing a safety net
for everyone
Stars in social media are born out of the cumulative push of the
community
The Key Strands, then
• Consumption as an ever alluring seductive force
• Creating a new ‘you’ one consumption at a time
• fashion identity
• travel - kind of person you are
• food - exploring world/culture
• shows/music - forming a worldview, creating alternate reality
• belief that anything is achievable
• Identity, itself an always on curation process, being simultaneously
informed by different worlds
• Social connections as easy, accessible but almost intangible neural network
CONSUMPTION
SOCIAL
CONNECTIONS
IDENTITY
CONSUMPTION
SOCIAL
CONNECTIONS
IDENTITY
SOCIAL COMMERCE
Most importantly,
SOCIAL COMMERCE E-COMMERCE=
Social Commerce is a seamless entry of the market into
my world while, I am connecting with my friends
In contrast,
e-commerce is still a planned excursion for consumption
Potentially unlimited consumption opportunities
• Primary intent of being on the platform is engaging with the world. The market happens
to be there
• With algorithms already predicting & dictating our content consumption, a market on
these platforms will be constantly adapting itself to suit my curated identity
• Attribution of ‘meaningful consumption’ tag, even when it is impulsive as it fits my world
Linear consumer journey has evolved into a truly
multi-device & multi-platform one
‘Experience’ becomes a way of navigation
• Both for arriving at a point of consumption as
well as the process of consumption itself
• Stickiness of the SM platform itself, the more
time gets spent on a particular app, the better
are the chances of ‘natives’ moving from
‘content to conversations to commerce’
• Content rich timelines of brands, undoubtedly
helps this process
Social commerce owns the entire buyer journey
CONNECTIONS
INFLUENCERS
BRANDS PROVIDE VISUAL STIMULATION THROUGHOUT THE PROCESS
And now, shortening it too
IMMIDEACY OF INSTANT GRATIFICATION
And now, shortening it too
IMMIDEACY OF INSTANT GRATIFICATION
A user’s ability to buy natively through Instagram radically shortens the
buyer journey allowing businesses to easily find, inspire and convert a
window shopper into a customer.
In the process, creating more conversions
Successful social media intervention in commerce already
happening in similar markets
Leveraging ‘Built-in social proof’
• ‘Reviews’ in e-commerce has been an important
parameter for making a purchase
• Presence of ratings, even from strangers instils
confidence
• Social commerce gives ratings a whole new degree of
legitimacy
• No. of views/engagements gives an indication to
consumers about the popularity of the product
• These engagements comes from members of the
community, making it much more believable
Success, even without a ‘transaction’
• Organic Traffic: Even if users don’t buy anything from it, users will be left with an impression which
can be developed into a purchase at another stage.
• Building Reach: There are billions of social media users logged in every day, who are actively looking
for potential consumption opportunities. Brand visibility will aid that decision
• Creating Trust : Products which have been bought, shared and reviewed amongst friends help build a
deeper relationship with brands’ followers and give them a better experience
• Omnichannel: . If a user spots something they love on their timeline, social commerce gives them the
opportunity to click through to purchase straight away. Ensuring one smooth journey to purchase.
• Ever growing Community: Social commerce thrives on community. Discover, buy, share, influence,
repeat
Implications for small brands
For small brands, get to this at the earliest
Interaction first, purchase later
Referrals to influence desires
To sum up,
The founding principles of the Social Commerce buzz, checks out with respect to Indian
Consumer Behaviour. Hence, the potential to grow big can not be refuted
However, in the truer sense of the term, it is still Social ‘enabled’ Commerce
The ideally true Social Commerce will show up when the platforms give any user the ability to
upload a selected merchandise, tag the product and any user can click the same & land on
the buying page
References & Suggestions
• Excerpts from Futurebrands Pvt. Ltd (Brand Consulting & Communication Strategy Firm) Case
Studies
• With key inputs from Nymphea Noronha
• Public Profiles on Instagram, Facebook & TikTok
• Brand Pages on Social Media
• NOTE: Images & graphs are for illustrative purposes only

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DECODING BUZZWORDS - Social Commerce

  • 1. The Age of Social Commerce Moving into a time of socially engaged shopping experience
  • 2. What is Social Commerce? Simply put, the process of making purchases directly on social media platforms It can be primarily classified into two groups: 1. Integrates the commerce on an existing social media platform 2. Uses the principles of social connections to create a referral-based commerce set-up
  • 3.
  • 4.
  • 5.
  • 7. Is Social Commerce a new thing? YES and NO YES, because the new form of social commerce is a completely new model NO, because a marketplace kind of commerce has been present for quite some time (early 2009)
  • 10. And THIS as the game changer
  • 11. Why the sudden buzz? Pandemic Times: Policy Decisions:
  • 12.
  • 13. Is it big enough?
  • 14. ( man is a social animal).
  • 15. Underlying force making this trend? Evolving socio-cultural & psychological factors
  • 16. Aspects fuelling the growth of social commerce CONSUMPTION • A playful game • Exploration of desires • Expression of ambition • Potent tool of identity curation IDENTITY • An ongoing aggregation exercise • Multi-faceted expression • Simultaneous broadcasting & consumption CONNECTIONS • Easy, accessible, desirable • Device of shared/collective experiences • An otherwise diverse and distributed Content seamlessly collapsing on to a timeline/s Accessible smart phones. Reduced data costs. Audio driven engagement apps. Local language ready tech. Digital money
  • 17. World of Consumption – an engaging, fun, entertaining simulation Consumers both as players as well as the played TRANSIENT ABUNDANCE OUTSOURCED PERFORMANCE
  • 18. Where frequency is the success metric More. More times.
  • 19. And ‘Aur Dikhao’ the operative mantra
  • 20. Professional Consumers: Building a consumption fueled identity/Professions/Careers/Celebrity-hood.. Star ness..
  • 21. Forever, indexing Aspirations, as they stroll through virtual timelines Curation of what needs to be bought, tried, seen and most importantly lived
  • 22. Not surprising then, is that, Identity becomes an ongoing aggregation exercise
  • 23. A plethora of finely sliced labels to borrow from
  • 25. …as well as consuming one’s identity
  • 26. Putting a disproportionate focus on external validation
  • 27. In this attempt, reveling in multiple dimensions of the self
  • 28. Borrowed from the multiple worlds, we interact with Passion Profession Content Food Friends Consumpt ion
  • 29. At the same time, a shift in the context of connections at basal level, given the changing imagination of ourselves
  • 30. Social connections are becoming easy…
  • 31. Social media has enabled every fan to transition into ‘friends’, which, in turn has become the very currency of new celebrityhood
  • 34. ‘Friendship’ itself has become a device for collective/shared experiences Community shared cycles
  • 35. Connections get forged into a ‘community’ providing a safety net for everyone
  • 36. Stars in social media are born out of the cumulative push of the community
  • 37. The Key Strands, then • Consumption as an ever alluring seductive force • Creating a new ‘you’ one consumption at a time • fashion identity • travel - kind of person you are • food - exploring world/culture • shows/music - forming a worldview, creating alternate reality • belief that anything is achievable • Identity, itself an always on curation process, being simultaneously informed by different worlds • Social connections as easy, accessible but almost intangible neural network
  • 41. Social Commerce is a seamless entry of the market into my world while, I am connecting with my friends In contrast, e-commerce is still a planned excursion for consumption
  • 42. Potentially unlimited consumption opportunities • Primary intent of being on the platform is engaging with the world. The market happens to be there • With algorithms already predicting & dictating our content consumption, a market on these platforms will be constantly adapting itself to suit my curated identity • Attribution of ‘meaningful consumption’ tag, even when it is impulsive as it fits my world
  • 43.
  • 44. Linear consumer journey has evolved into a truly multi-device & multi-platform one
  • 45.
  • 46. ‘Experience’ becomes a way of navigation • Both for arriving at a point of consumption as well as the process of consumption itself • Stickiness of the SM platform itself, the more time gets spent on a particular app, the better are the chances of ‘natives’ moving from ‘content to conversations to commerce’ • Content rich timelines of brands, undoubtedly helps this process
  • 47. Social commerce owns the entire buyer journey CONNECTIONS INFLUENCERS BRANDS PROVIDE VISUAL STIMULATION THROUGHOUT THE PROCESS
  • 48. And now, shortening it too IMMIDEACY OF INSTANT GRATIFICATION
  • 49. And now, shortening it too IMMIDEACY OF INSTANT GRATIFICATION A user’s ability to buy natively through Instagram radically shortens the buyer journey allowing businesses to easily find, inspire and convert a window shopper into a customer.
  • 50. In the process, creating more conversions
  • 51. Successful social media intervention in commerce already happening in similar markets
  • 52. Leveraging ‘Built-in social proof’ • ‘Reviews’ in e-commerce has been an important parameter for making a purchase • Presence of ratings, even from strangers instils confidence • Social commerce gives ratings a whole new degree of legitimacy • No. of views/engagements gives an indication to consumers about the popularity of the product • These engagements comes from members of the community, making it much more believable
  • 53. Success, even without a ‘transaction’ • Organic Traffic: Even if users don’t buy anything from it, users will be left with an impression which can be developed into a purchase at another stage. • Building Reach: There are billions of social media users logged in every day, who are actively looking for potential consumption opportunities. Brand visibility will aid that decision • Creating Trust : Products which have been bought, shared and reviewed amongst friends help build a deeper relationship with brands’ followers and give them a better experience • Omnichannel: . If a user spots something they love on their timeline, social commerce gives them the opportunity to click through to purchase straight away. Ensuring one smooth journey to purchase. • Ever growing Community: Social commerce thrives on community. Discover, buy, share, influence, repeat
  • 55. For small brands, get to this at the earliest
  • 56. Interaction first, purchase later Referrals to influence desires
  • 57. To sum up, The founding principles of the Social Commerce buzz, checks out with respect to Indian Consumer Behaviour. Hence, the potential to grow big can not be refuted However, in the truer sense of the term, it is still Social ‘enabled’ Commerce The ideally true Social Commerce will show up when the platforms give any user the ability to upload a selected merchandise, tag the product and any user can click the same & land on the buying page
  • 58. References & Suggestions • Excerpts from Futurebrands Pvt. Ltd (Brand Consulting & Communication Strategy Firm) Case Studies • With key inputs from Nymphea Noronha • Public Profiles on Instagram, Facebook & TikTok • Brand Pages on Social Media • NOTE: Images & graphs are for illustrative purposes only

Editor's Notes

  1. IDENTITY - Equally focussed Inward & outward : projection as well as ‘I am Hero’
  2. Living in a World of Transient Abundance
  3. unrestricted & unconstrained vicarious consumption
  4. Multi-potentialite
  5. Multi-potentialite
  6. Based on common passions, professions, interests, experiences
  7. Evolving vocabulary – Bro & Sis hood
  8. Pictoral representation of the journey