Mobile commerce is becoming more social
Commerce continues to evolve as more consumers become tethered to their mobile devices and place more importance on social media. This evolution first began in the 80’s with the advent of the Internet and e-commerce. The proliferation of mobile technology brought about mobile commerce, which has only emerged within the past few years and is still considered to be in a state of infancy. Now, however, commerce is showing signs of a new evolutionary step, one called “participatory commerce” or “Pinterest commerce.”
Participatory commerce continues to gain some traction
Participatory commerce, as a term, was first coined by Mark Pincus, CEO of Zynga, in 2005. The term became somewhat popular in 2010 to describe the business model of FashionStake, a retail startup that was acquired by Fab.com in 2012. The term itself refers to a sales model that allows consumers to participate in the design, selection, and funding of certain products they are interested in purchasing. In some ways, this model is similar to popular crowdfunding platforms like Kickstarter, where individuals funding a project have some control over how that project will take form.
Retailers find value in social networking
Participatory commerce began being called Pinterest commerce in 2011 during the social network’s unexpected rise to fame. The retail industry was quick to see the possible benefits that Pinterest represented and moved to leverage the social network to their advantage. While Pinterest does not allow for online sales, it has proved to be a valuable platform through which retailers can expose consumers to new products and encourage online shopping.
New forms of commerce becoming increasingly social
The term is not widely used and is often considered to be an unnecessary subcategory of mobile commerce itself. It does, however, draw attention to the growing role of social media in the mobile commerce sector. Sites like Pinterest already hold a great deal of influence over consumers and retailers are becoming more adept at using these platforms to connect with mobile consumers in various demographics.
Mobile commerce becoming influence by social networking
Mobile commerce is growing more prolific around the world. It is becoming increasingly important for retailers and large brands to begin accommodating the needs of a growing consumer base that is tethered to mobile technology. As businesses begin to focus more on mobile commerce, consumers are also becoming increasingly reliant on the information they can find online, bringing more attention to the concept of social commerce. Social networks and other forms of online engagement are aiding in the continued evolution of mobile commerce by introducing more dynamic aspects to this still emerging sector.
Social commerce begins emerging among consumers
The concept behind social commerce is relatively simple: Consumers are able to find reviews for products on social networks and use this information to make informed purchase decisions. Peer reviews of products and services have long been valuable to consumers. These reviews often determine whether or not a consumer will purchase a particular product or support a particular brand. Bad reviews have, in the past, meant significant loss for a wide range of brands. As these reviews become increasingly mobile-centric, they are beginning to affect the purchasing habits of consumers.
Social media provides new platform for peer reviews
The average consumer relies heavily on social media to stay connected to friends and family as well as attain information of subjects they may be interested in. Consumers tend to share a great deal of information through social networking sites like Facebook and Twitter, and this sharing often includes information concerning the products they purchase. A recent study from Reevoo, a market research firm, shows that a growing number of consumers are accessing product reviews from their mobile devices. The report also shows a major spike in the reviews that consumers are posting from mobile devices. According to the report, reviews from mobile devices have grown by 212% since September 2011.
Social media may become intertwined with mobile commerce
Mobile commerce is becoming a more prominent part of the lives of consumers, which in turn is leading mobile commerce to become a more prominent part of social networking. Mobile commerce itself refers to much more than payments being made from a smartphone or tablet, it also encompasses mobile shopping and banking. Because of the always-connected, always-online nature of mobile commerce, social networking may soon become a major part of the way people use their mobile devices to purchase, review, and search for the products they may be interested in.
