THE INTERNET MADE ME BUY IT
Social commerce to boom
96% of global internet users are on social media platforms, which comes out to about 4.5 billion people. With an expected three-year growth that will push nearly 1 in 5 of all e-commerce sales to be made through social commerce alone, the time to innovate into digital social shopping is now. Today, we’re talking social commerce as we explore global transformations in the emerging virtual field.
Embracing social commerce is key for the fashion industry as 71% of trendsetters get style inspiration online, more so than friends and even entertainment. So U.K.-based luxury shopping platform Threads Styling is leaning in by creating a new e-commerce website to facilitate their chat-based model. In addition to serving clients through messaging services like WhatsApp and WeChat, Threads has created an online hub for customers to browse clothing and chat with personal shoppers. Currently, 80% of its clientele is made up of Gen Z and Millennials, and the average shopping basket spend is $3,200. Threads is focused on building their personalized client engagement as social media platforms like TikTok and WeChat queue up for global sales forecasted to be $1.2 trillion by 2025.
Online shopping is cool – but what if consumers just aren’t familiar with tech? In comes DealShare, an India-based social commerce start-up serving “not so tech-savvy” consumers. Valued at $1.7 billion with expected gross revenue of $3 billion in the next year, DealShare is stepping into the “world’s second-largest internet market” that has been virtually (lol, get it?) untouched by e-commerce. Looking to democratize online shopping, DealShare is even tackling costs by driving up local competition and allowing customers to negotiate prices within the platform.
As social commerce explodes, what happens to the smaller businesses that can't adapt quickly? Introducing Shopware, an open-source tool kit to power mid-size businesses' much-needed online shopping abilities. Having recently announced a $100 million fund and backed by investors like PayPal, this Germany-based company is on the cusp of significant opportunities. As Gen Z seeks novelty over brand names, the chance for mid-size businesses to reach these audiences where they're at (i.e., online) will be key.
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