Commerce is becoming more integrated with social media
Social commerce is a relatively new term being used in the Western world. It is not a term that is often used, even with regards to e-commerce, but the phenomenon behind this world is gaining power throughout the world. Social commerce refers to the use of social networks in the context of e-commerce transactions. In China, this has become a powerful force and the country’s social networking sites are beginning to evolve to become more mobile-centric and engage consumers in commerce.
Mobile commerce is changing the way people interact with businesses
Commerce is beginning to change due to the adoption of mobile technology. More consumers are using their smartphones and tablets to make their lives easier and more convenient. These devices are trafficking consumer information and have successfully changed the way people interact with one another and with businesses. As people become more aligned with mobile technology, businesses are taking steps to embrace mobile commerce. A growing number of these businesses are beginning to see that they can find success through leveraging social media to promote mobile shopping.
Tmall shows off the capabilities of its social commerce platform
Tmall, an online retailer similar to Amazon, is one recent example of a company embracing social commerce. The retailer has integrated a social media platform that is being used as a consumer-power review system. The platform allows users to rate products and companies based on various factors, such as the accuracy of a product description and the customer service being offered by a company. Products with high rating receive more promotion from Tmall through the social platform.
There is more spending power among active social media users in China than in the US
One of the reasons social commerce has become so powerful in China has to do with who actually uses social media platforms. In the U.S., the largest demographic of active Facebook users are those that have recently graduated college, whom tend to have very little spending power. In China, however, the majority of those that are active on social media sites have higher incomes and more spending power, making them an ideal demographic for social commerce.
The report shows that mobile commerce grew by 47% during the second quarter of this year, significantly overshadowing the growth this sector had seen in previous quarters. By comparison, conventional e-commerce spending grew by 10%, while discretionary retail spending grew by just 3%. The report predicts that such growth is not likely to be sustainable throughout the remainder of the year, but mobile commerce is likely to continue gaining attention among consumers whose lives are tethered to mobile devices.