State of Social Commerce Report

Published: March 2021

    What Is Social Commerce?

    Social commerce is the process of selling products directly on social media. The entire shopping experience, from product discovery and research to the checkout process can happen without the consumer having to leave the social media platform.

    Table of contents

    1. What is Social Commerce
    2. Gen-Z & Millennials Overview
    3. US vs China’s Market
    4. Social Commerce Survey (350+ responders)
    5. Social Commerce Apps and websites
    6. Buy Now Pay Later
    7. Quotes from experts

    About us

    We are a global influencer marketing agency that helps brands engage with Gen Z & Millennials on TikTok, Instagram and YouTube.

    Some of the experts featured in our report

    Matthew Brennan

    Matthew Brennan

    “China has pioneered social commerce for years now. In the local Chinese market barriers between traditional content platforms, social networks, and marketplaces have broken down. The infrastructure is in place to make commerce happen almost anywhere. Discovery, consideration, and purchase have become deeply intertwined with entertainment and education. Customers are frequently incentivized to recruit friends and share in the buying process. Trust is driven by the vast and deep ecosystem of niche KOLs and influencers.”

    Author of Attention Factory

    Anna Dato

    Anna Dato

    “China’s ability to accelerate change and live the future before the rest of the world, is closely connected with their digital vision. But in a world with unlimited offering, curation is becoming increasingly necessary… hence the success of the KOL! The Chinese leading influencers built their image and reputation on the ability of authentically interpret the domestic demand, and channel the consumer voice with the brand to build a stronger offering, with a direct to consumer approach. This value is extremely precious for the international luxury brands, that are depending on Asia for over 50% of their overall sales.
    But in the reputation power game, who will definitely win the Chinese consumers hearts? Will KOLs – driving social commerce – make brands unnecessary.”

    Marketing Manager Asia for Intercos

    Pavllo Zengo

    Pavllo Zengo

    “Over the past years, we have seen a progressive shift in consumer shopping habits that switched heavily from brick and mortar to e-commerce. Social Media has now taken a large piece of the e-commerce space with direct purchasing on platforms like FB, IG and soon TikTok.  We can see that consumers appreciate the interactive component of social commerce and even though it’s proven that most users are not as likely to “engage” with brand content, what has grabbed consumers’ interest is the ability to browse, share and buy products within these different digital platforms. I believe it’s that curiosity that will continue to drive the demand for social commerce shopping and sales. This is a very lucrative channel for all brands not just in the Beauty/Skincare world.”

    Brand Storyteller @FOREO