Rise Of Social Commerce

THE RISE OF - SOCIAL COMMERCE Influencing how people spend for shopping online 66 Social commerce is the evolution and maturation of social media meets shopping. Heidi Cohen Actionable marketing expert @heidicohen Evolution and Statistics The term "Social Commerce" was first introduced by YAHOO! in Nov, 2005 #1 Global ecommerce sales to top # 2 $1.2 trillion B2C ECOMMERCE SALES WORLDWIDE, BY REGION (BILLIONS) NORTH AMERICA ASIA PACIFIC WESTERN EUROPE $ 707.60 700 $ 580.24 600 600 600 $ 373.03 500 500 500 $ 387.94 $ 255.59 чоо 400 $ 315.91 чоо 300 300 300 200 200 200 100 100 100 2012 2016 2012 2016 2012 2016 CENTRAL & EASTERN LATIN AMERICA MIDDLE EAST AND EUROPE AFRICA $ 68.88 $ 69.66 70 70 60 60 60 $ 40.17 50 $ 45.49 50 50 $ 37.66 чо чо чо $ 20.61 30 30 30 20 20 20 10 - 10 - 10 - 2012 2016 2012 2016 2012 2016 Source : emarketer, June 2013 # 3 75% Consumers said that watching user-generated video reviews helped them make a purchase decision #4 # 5 55% 74% rely on social networks to guide purchase decisions Share purchases on social networks Source : mediabistro Types of social commerce: 1. Online Marketplaces and Auction Sites : Markets that are community-based where two individuals engage directly in buying and selling. amazon.com 1994 22% INCREASE IN NET SALES ( 2012 - 2013 , SECOND QUARTER ) ebay 1995 $18.3 B SOLD IN GOODS 2005 Etsy EXCLUDING VEHICLES ( 2013, SECOND QUARTER ) 800,000 ONLINE SHOPS 15M ONE OF A KIND ITEMS 2008 TaskRabbit 75% WORD OF MOUTH 2011 USERS COME BY Getaround 5 CITIES 10,000 CAR OWNERS Sources: $13.9M SERIES B FUNDING RAISED ecommercebytes, theVerge, AngelList, CNNMoney, Amazon Press Release, Pinterest for business 2. Social Network Shops and Shopping Apps : Sales that are referral driven on established social platforms; i.e. through a "shop" tab on Facebook. facebook. 2004 1 Million + 2006 twitter ADVERTISERS 33% FOLLOW A BRAND tumblr. 2007 67 % BUY FROM BRANDS THEY FOLLOW ON A TYPICAL DAY 250M PAGE VIEWS 33M NEW POSTS 2010 Pinterest 70M USERS 37% 41% Instagram 2010 TAKES 41% OF ECOMMERCE 25% MORE ENGAGEMENT Sources: ysearchblog, Facebook-Q2 Report, Twitter blog, mediabistro, readwrite, THAN ANY OTHER SOCIAL PLATFORM L2ThinkThank, Practical ecommerce 3. Daily Deals and Group Buying : If enough number of people agree to purchase something. the products and services are offered at a reduced price. livingsocíal 2007 $20 FOR A MERE $10 AMAZON GIFT CARD 2008 GROUPON" RECORD BREAKING DEAL!!! 1.3 M DEALS SOLD IN 24 HOURS IN 2011 50M + PEOPLE DOWNLOADED SCOUT mob 2010 GROUPON APPS WORLDWIDE CURRENTLY IN 13 Cities BACKED WITH $5 Million Google offers 2011 MOST POPULAR DEAL WAS $20 WORTH OF POWELL'S BOOKS Sources : TNW, GroupOn press release, Techcrunch 4. User Review Sites : Sales are driven through product reviews by other purchasers, service reviews, and/or rewarding individuals for sharing the same on their social profiles. 1994 amazon.com 209 Million yelp: 2004 ACTIVE USERS 90% USERS SAY just bought it POSITIVE REVIEWS IMPACT THEIR COMPANY BUYING CHOICES 2012 SOCIAL SHARING GIVES 3% OF FRIENDS SPENT VALUE IN POINTS 500 points= 5 pounds Sources: ChannelAdvisor, Merchant Warehouse Infographic 5. User-Curated Pick Lists : Sites focussing only on shopping; users create lists of products and services for other people to shop from. FANCY 2009 VAUERAN $600M LYST 2010 APPROX 1M + MONTHLY UNIQUE VISITORS Styloko- 2012 S1M +IN SALES EVERY MONTH 700,000 PRODUCTS FROM UK RETAILERS Sources: Bloomberg, Techcrunch, FashionBust 6. Crowdfunding/Crowdsourcing : Consumers become an active part in the production process through voting, funding and collaborative designing. tuuadlent 2000 $8,774,411 RAISED ModCloth 2007 FOR OVER 1200 ARTISTS WORLDWIDE $100 M in revenue (2012) indiegogo 2008 40% GROWING RATE PER YEAR 44,000 CAMPAIGNS $99M SUCCESSFUL DOLLARS 2009 KICKSTARTER $788M PLEDGED 48,606 SUCCESSFULLY FUNDED Sources : Modcloth press page, Kickstarter stats, StartupsFM, Threadless 7. Social Shopping Shopping that includes chat and forum features for people to discuss, exchange advices and opinions. Its almost like the offline shopping! listia 2009 Over 5,000,000 ITEMS EXCHANGED FASHISM 50,000 MOBILE APP USERS WITHIN ONE YEAR OF LAUNCH motilo. 2011 VERSION 2.0 RELEASED Fab. THIS SEPTEMBER TAKES SOCIAL SHOPPING TO THE NEXT LEVEL 10M+ MEMBERS Sources: Listia, NYTimes, Wikipedia myshoesspeakitalian "LIVE FEED" TO SHARE WHAT THEY BUY SOCIAL COMMERCE IS AN AMBIENCE FOR CONSUMERS AND AN ENGAGEMENT ENGINE FOR BRANDS. WHILE SHOPPERS INDULGE IN SMART BUYING, BRANDS INTERACT WITH THEM TO GIVE THEM A TAILORED BRAND EXPERIENCE. PRESENTED BY STARTUPS. FM O http://startups.fm M [email protected] THE STARTUP CHANNEL © Copyright 2013 StartupsFM ч %23