When 2022 began and the world was optimistic for a post-pandemic era, trend spotters predicted (despite the opening of brick-and-mortar stores) that e-commerce would continue to grow.
According to a recent industry report, e-commerce will account for 20.4% of global retail sales by the end of 2022, up from 10% only five years ago.
The real segment of e-commerce’s explosion is social commerce, the practice of purchasing solely from social media platforms.
Gen Z has profound comfort navigating social commerce. A full 97% say social media is their top source of shopping inspiration. That same crowd say they would prefer to purchase items without ever leaving the app they’re using.
Low and behold, TikTok is a key driver.
Businesses can bolster success based on their TikTok community alone, still with minimal overhead nor traditional advertising costs.
Founder and CEO of Gen Z content platform Culted, Pavel Dler relates to its ingenuity as a next gen entrepreneur. “For brands, TikTok is a more suitable application to share your process. You can show how you develop clothing or add artwork – it’s more creative and encourages people to get involved.”
Don’t be mistaken — Millennials aren’t far behind in their use of social commerce and Baby Boomers too have become reliable online shoppers.
Live shopping — a form of social commerce — is hitting its stride. Live shopping is like a real-time livestreamed “commercials,” only rather than a one-way conversation, the host interacts freely with viewers on said social channel.
TikTok accounted for $470 billion in livestreaming e-commerce sales in China alone this past year. North America and Europe are ramping up.
For enterprise brands who have reached across the aisle to dive in, their investment has shown fruitful returns.
Samsung is a notable example. Ahead of debuting the Galaxy Z Fold 2 5G mobile phone, the cell company leveraged live shopping to reach Gen Z. The brand and its partners reported 15K interactions and a 127% conversion rate to goal… impressive.
The team over at ICUC created a reference guide where we dispel some myths, breakdown channel opportunities, and discuss safety measures. Hope you enjoy it!