SOCIAL COMMERCE OVERVIEW - Social Commerce mini report #1
We’ve all seen the hype about the potential of social commerce in the US, especially given its absolute dominance in Asian markets like China.
Projections globally for social commerce are for it to account for $1.2 trillion (in GMV) by 2025. Asia is the big driver of these results.
But what about in the West? For many marketers in the US and Europe, the impact of social commerce has been a bit of a mystery.
Drawing from my experience in China and across Asia, where 'social commerce' dominates, I wanted to understand the true impact of social-driven commerce in the West ...and benchmark its growth against China/Asia.
In the past, I have made the mistake of over-estimating the pace of change in the West. Back in 2015-16, I was sure that messenger-based social was poised to skyrocket in the US/EU - based on the omni-presence I saw with WeChat in China. That change never happened! Changing customer behaviours and routines (especially in more mature markets), takes a long time!
So, where does social commerce stand in the US/West? Its certainly nowhere close to where it is in China and Asia. In those markets, social commerce is everything when it comes to marketing.
𝗢𝘂𝗿 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀 𝗼𝗳 𝘀𝗼𝗰𝗶𝗮𝗹 𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗲 𝗶𝗻 𝘁𝗵𝗲 𝗨𝗦 (𝗪𝗲𝘀𝘁) - 𝗶𝗻 𝘁𝗵𝗶𝘀 𝗿𝗲𝗽𝗼𝗿𝘁 - 𝘀𝗵𝗼𝘄𝘀:
Social commerce is on a steady growth trend and is gaining momentum as (i)a native sales channel, and ….more importantly, as (ii)a driver/influencer of commerce.
When viewed against the full spectrum of digital marketing strategies over the past 25yrs, we see social commerce as a FORTH MODE of digital marketing in the West.
It is the mode of marketing growing at quickest pace, as of 2024/25.
By contrast “search” marketing is showing signs of slowing.
Where all digital paths started-and-ended with ‘search’ previously, SOCIAL is revealing itself as being effective across all steps along the customer journey.
The shift to social commerce has been percolating for a long time (often under-the-radar) but is quickly stepping into limelight.
This is part of the Social Commerce on the Rise report series. Check out the other mini-reports that dive into different aspects of Social Commerce & brand strategy in the West (US).
DATA VISUALIZATION
AND DASHBOARDS
Totem works with a range of brands globally on business intelligence solutions.
Our clients rang across industries; from retail/fashion to beauty, from travel to finance.
Business intelligence and data visualization projects for our clients address critical issues including:
Sales performance, marketing ROI, and social media optimization.