Social media and shopping: the winning match

The combination of e-commerce and social networks, commonly referred to as “social commerce”, has caused a revolutionary change in the e-commerce landscape in recent years. This combination has not only transformed the online shopping experience, but also given businesses unprecedented access to the enormous potential of social media platforms. From Facebook, Instagram and TikTok to Pinterest and now WhatsApp, these platforms are creating new opportunities for customer interaction and diversified revenue streams, marking a paradigm shift in online retail dynamics.

The rise of social commerce and its impact on consumer behavior

Imagine scrolling through Instagram, seeing the perfect pair of shoes or party dress, immediately adding them to your cart, and purchasing them using your preferred payment method… all without leaving the app! That’s why almost all fashion e-commerce companies do it
I started looking for ways to leverage this potential to increase sales and brand awareness after realizing the size and engagement of these platforms’ user bases.

WhatsApp Commerce in particular is gaining popularity thanks to its conversational approach that allows businesses to directly engage and interact with customers through the messaging app. With two billion users worldwide, most of them in India (487 million), WhatsApp offers a large customer base for brands. Beyond apps and websites, WhatsApp has become a can’t-miss channel for brands that want to be closer to their customers.

User-generated content, influencer marketing, in-app purchases, live shopping, shoppable posts and social referrals are just some of the features and tactics that make up social commerce. Businesses can directly interact with customers, streamline the purchasing process, and improve customer satisfaction by incorporating these features into social media platforms.

The Next Generation Social Trading Guide The study, conducted by Snapchat and Havas Media Network, examines how companies can effectively engage Millennials (ages 24-34) and Gen Z (ages 13-23) in the space of social commerce. In India, 94 percent of social media users bought clothes on social media. The report also highlights how important social media is to the shopping experience of Indian customers. It shows that six out of ten Indian consumers find new brands and goods on social media and rely on it for product recommendations and reviews.

Another important study showed the role that virtual trial features play in increasing conversion rates, especially in India, where 79 percent of respondents considered this feature essential. These results cover many industries, including clothing. Augmented reality is important in all retail industries, but it is especially important in the luxury market, as confirmed by two out of three social media users. Moreover, a significant portion of Indian luxury buyers – 85 percent – say the availability of a virtual try-on feature influences their purchasing decision.

Customers can browse product recommendations according to their preferences, hobbies and social networks, making their shopping experience more relevant and fun. Recommendations from friends or influential people they follow are more likely to be trusted by consumers than conventional advertising. Due to this change in customer behavior, companies now need to reconsider their marketing plans and place more emphasis on developing real relationships with their target market.

What does Social Commerce do better than traditional e-commerce?

Thanks to the mobile phone and cheap internet connection, social trading has become not only easy but also important. It has many advantages over traditional e-commerce.

Social commerce makes it easier for customers to make purchasing decisions, shortening the path from product discovery to purchase. Shoppable posts and in-app checkout options make the shopping process easier, lowering cart abandonment rates and increasing conversions.

According to IMARC Group, a leading market research firm, the Indian social commerce market size has reached $3.3 billion in 2022. Looking ahead, IMARC Group expects the market to reach $18.2 billion by 2028, showing a CAGR of 32.7% over 2023-28.

By browsing their social media channels, users can easily find new products, special offers and limited edition products. This immediate product discovery promotes impulse purchases and increases brand visibility.

With social commerce, marketers can use user information and preferences to target ads. Brands are able to make product, promotion and advertising recommendations that are specifically tailored to the interests of their target audience by examining their customers’ behavior and interactions. Brands even have access to important data about user interests, purchasing patterns and demographics. These insights help you identify trends, optimize your product offerings, and refine your marketing strategy for better results.

Indian brands adopting social commerce

Clothing seller India bestseller announced a partnership with social commerce platform Trell to launch fashion brands Jack&Jones, Vero Moda and Only. Through this association, Trell intends to increase its offering in the premium segment and strengthen its presence in the Indian fashion market.

Myntra, an online clothing retailer, has announced its foray into social commerce at scale. As part of its foray into the social commerce space, the company also launched M-Live, a first-of-its-kind, real-time interactive shopping tool for its customers.

Flipkarte-commerce brand, announced the launch of Shopsy, a separate social commerce platform that allows you to start an online business without investment.

Meeshosocial commerce forerunner in India, said it has enabled transactions on its platform for 14 crore customers, with 80 per cent of orders coming from Tier-2 and non-Tier-2 markets in 2023.

According to Tidio data, the size of the global social commerce market is USD 958 billion, and in 2024 it is expected to increase to USD 1.6 trillion. Most social commerce buyers come from Thailand (88%), India (86%), United Arab Emirates (86%) and China (84%).

Ajio, part of Reliance Retail, in November announced the launch of AJIOGRAM, an interactive D2C content-driven e-commerce platform to help Indian fashion startups. Some of the top brands available exclusively on AJIOGRAM include Urban Monkey, Supervek, Quirksmith, KRÁ Life, Creatures of Habit, Cecil, Truser, Fancypants, MIDNIGHT ANGELS BY PC, Monks of Method, Crafts and Glory. Ajio said it will provide dedicated support to D2C brands to help them scale and achieve strategic revenue growth. AJIOGRAM will also provide long-term brand building support through 360-degree marketing to fuel the growth of brands. This includes seamless integration with Ajio’s influencer ecosystem, Reliance-owned media properties and offline events, as well as co-planning support to help brands build margins and accelerate revenue growth.

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