Social shopping is transforming the eCommerce sphere and the way consumers shop online. Yet many companies today have millions of followers on social media that they don’t benefit on – while some successfully have major revenue streams through social platforms. If you’re quick to adapt to new features and platforms and stay relevant to your audience, it’s likely that your brand can be among those that succeed to leverage on social commerce.
In this article, we’ll walk you through why fashion brands need to have a social commerce strategy today and what opportunities there are for them to drive sales on the popular platform. We will also cover the basics behind social commerce; what it is, why you need to care, as well as the game changing tools that’s available on Instagram.
Prefer to listen? Tune in to this podcast episode!
What is Social Commerce?
Let’s first understand the difference between eCommerce and social commerce? eCommerce is buying and selling products and services through a website while social commerce is buying and selling products and services on social networks such as Instagram, Facebook and TikTok.
The big change with social commerce is that users can browse through products on social platforms and make purchases directly within an app without going to a third party website. It becomes a one stop shop that brings your followers from inspiration to check-out! It’s important to keep in mind that social commerce owns the entire buyer journey. It also shortens it as brands can easily lead the customer from a window shopper into a customer.
News! Shopping on Instagram just got easier. 🛍
All eligible businesses and creators in this US can now use our checkout feature, which lets you buy and sell products directly in app. Businesses can also now sell through Live, which means you can buy products in real time. pic.twitter.com/rpdxiEdLuD
— Adam Mosseri 😷 (@mosseri) August 25, 2020
We know that there’s a jungle out there with new updates and features launching one by one. This is why we, in this article, will focus on social commerce on Instagram as the platform has a lot of new potential with its new features and tools that keep users within the app.
Why should fashion brands care about social commerce?
Social commerce is booming on platforms all around the world; Wechat and Pinduoduo in China, and Instagram and TikTok in the Western world. It’s happening a lot within social commerce right now and it’s quickly moving forward. In 2020, Instagram launched several new features that makes it possible for brands to sell directly to their target audience within the app.
According to Cision, the global commerce market is estimated at $89.4 billion in 2021 and is set to reach $604.5 billion by 2027. You simply don’t want to miss out on this consumer shift that’s moving faster than any of us could imagine. To be more precise, the pandemic in 2020 jumped eCommerce forward by 5 years.
(Time to let that rapid development sink in).
If you’re trying to market to Millennials (aged 25-40 in 2021) or Gen Z (aged 6- 25 in 2021) – social media is where they spend most of their online time. Millennials spend approximately 2 hours 30 minutes on social media daily. This is 18 minutes longer that the global average. Gen Z spend even longer – around 3 hours on social media every day.
It makes sense that you as a brand need to have a social media presence. This is no longer a nice-to-have, but a necessity. Check on that? Great!
Looking at how Millennials and Gen Z shop online, the social platforms are today’s shopping window and where they seek inspiration, research products and get to know brands. For example, 84% of Instagram users (a.k.a majority of Millennials and Gen Z) say they find new products on Instagram. This is why it also makes sense to sell to them on social media.
While reading this, almost 50% of social media users between 18-34 have already participated in social commerce on platforms like Instagram, TikTok and Snapchat. The question is, are you one of the brands they shopped from?
What’s fascinating in today’s digital world is that every brand stands the same chance. High streets are no longer located within the bounds of city centres and you don’t have to afford the most expensive flagship store location. Seeing as not all fashion brands work with social commerce today, there’s a chance to be early. It will be a key to success in the upcoming years – especially if you are a direct to consumer brand.