Social commerce and live shopping: developments and benefits

While social commerce is reaching new heights in Asia, particularly with the expansion of live shopping, some social networks have decided to withdraw this functionality in Europe in recent months. With this trend struggling to take hold in Europe, is the future of social commerce heading in a different direction? Will social commerce still be an attractive marketing tool in 2022? Let’s decipher the situation.

The boom in social commerce in Asia

Asia is a leader in the social commerce market, which has seen exceptional growth for several years. According to GlobeNewswire, the industry in Asia Pacific is expected to grow by 38.2%, reaching a market value of US$423,136.5 million by the end of 2022.

It is thanks in particular to the boom in live shopping, which saw a 280% increase between 2017 and 2020, that this market is experiencing such a craze. While in Europe and the United States, live streaming is mainly used in the gaming world, in Asia it has fully taken over the retail sector and is revolutionising shopping habits. Two years ago, ⅔ of consumers in China said they had already bought a product during a live shopping session.

What about Europe?

In Europe, social commerce is also developing, and live shopping is beginning to emerge timidly. This summer, however, Tiktok took a step backwards in Europe by abandoning the “TikTok Shop”, the live shopping system that had been trialled in the UK since last year. At the same time, Meta is also in the process of adapting its offering by reducing the live shopping functionality in favour of the real thing.

What could explain this lack of interest in live shopping? A study conducted by Capterra provides some clues. It shows that 47% of French people say that an advert on social networks has already influenced their purchase, but some users are reluctant to make purchases via social networks for various reasons:

• For 52%: concern about security on these platforms
• 42%: fear that social networks will track all their activities
• For 39%: fear of being scammed

So the key to the development of live shopping and social commerce in Europe will undoubtedly lie in strengthening the trust that users have in the various platforms. As with an e-shop, social networks and accounts using social commerce and live shopping will need to pay particular attention to reassurance elements (e.g. reviews, better account verification, useful content and interactions, etc.) to gain the trust and loyalty of users and encourage them to make purchases via social networks.

Why shouldn’t we miss out on social commerce?

Social commerce and live shopping are trends to keep a close eye on, as they represent promising commercial levers for the future. They offer a number of advantages:

• An unrivalled conversion rate: according to McKinsey, the conversion rate for live shopping is close to 30%, 10 times higher than for traditional e-commerce.
• A shorter sales cycle: social commerce allows you to move directly from awareness to purchase by proposing a purchase action to users live, without leaving the platform.
• Improved customer loyalty: social networks make it possible to create and maintain a strong bond with customers before, during and after their purchase.
• A wealth of data: social networks make it possible to analyse the results of social commerce strategies in real time and adapt them as necessary, thanks to precise targeting.

Although social commerce is not currently experiencing the same boom as in Asia, it is nonetheless becoming an essential sales lever that should not be overlooked. It is the only place where you can combine social interaction (both with the brand and with other users) and sales directly within the same platform. Our advice? Test and take advantage of existing social commerce functionalities for your business, without forgetting to keep a close eye on developments and new trends… As for a return to live shopping? It’s likely, as this functionality has certainly not said its last word in Europe.