Over the past two decades, social media has irrefutably changed not only how we communicate, but how we interact with each other in general, in ways that we could not even imagine before. Now it looks like they are poised to revolutionize (and) the way we shop, with an influence that goes way beyond both their definition and their original origins. Let’s take things from the beginning. From the early days of MySpace in 2003, which was the most popular social medium until around 2008, to the advent of Facebook (now Meta) in 2004, social media has certainly come a long way. What started as a digital medium has grown into the dominant marketing tool every brand needs: the global social media advertising market is predicted to reach $262.62 billion by 2028 – with double-digit annual growth – already surpassing the TV market. (source: Million Insights).

The pandemic has accelerated (and intensified) a trend that has already begun to emerge: social media is (now) moving beyond the typical boundaries of marketing and integrating into people’s shopping experiences and habits. In other words, social networks are gradually becoming – this time capitalizing on their popularity in a different way – into the (new) channels through which most of the world’s trade is (will be). Tellingly, according to global research by Kantar, social media activity increased by 61% during the pandemic, with 58% of consumers aged 13 to 37 interested in buying products directly from their channels.

The term that most accurately characterizes the evolution of this phenomenon is translated into Greek by the description “social commerce”, just in order to emphasize the particularly significant importance of the social element (in contrast, for example, to the rather common term e-commerce or e-commerce). -commerce). According to Accenture, the value of social commerce globally is expected to almost triple by 2025, reaching $1.2 trillion (up from $492 billion in 2021), or 17% of the e-commerce market (which is $7 trillion) .

With this in mind, it would be worthwhile – with an eye to the (not so distant) future – to consider some possible scenarios. The fact that they are based on already tangible examples makes this perspective even more interesting and relevant:

– In China, Alibaba’s online shopping platform Taobao (sort of like Amazon) introduced in 2016 what is now called live commerce: a live webcast that takes place inside an e-commerce store so that customers (or viewers, if you prefer) can browse and shop through chats without leaving the platform. The new business model has been so successful that in just a few years it accounts for 10% of all e-commerce sales in China, and the gross value of goods has grown from just $3 billion (a term that practically reflects the value of all goods sold) in 2017 to more than $400 billion in 2022 – Source: Mckinsey.

What started as a digital communication tool has grown into the dominant marketing tool required for any brand.

According to TikTok, a social network (of Chinese origin) whose impressive growth could soon threaten Meta’s dominance, the future of commerce is no longer with e-commerce, but with the shopping experience itself. Starting with this revolutionary offering, TikTok began to reposition itself at the point where the shopping experience intersects with entertainment, with the goal of changing the way brands interact with their audiences. The idea is to allow companies (brands) to meet consumers directly where they want to be, rather than trying to generate sales through traditional vertical sales channels. A change in the context in which brands meet (and interact) with consumers in a familiar (for the latter) environment gives the impression of a change in conditions (in favor of consumers), when in fact it in some way reverses the course of the shopping experience. which benefits direct (and not only) sales.

Of course, the above examples refer to different contexts, and at the same time, it is true that Western markets have heterogeneous cultural patterns and diverse shopping habits that differ significantly. This means that they can in no way be a guarantee or a reliable (even) basis for how trends will develop on a global scale. Especially when they are (almost) never linear. However, markets are now more interconnected and interdependent than ever before, and these trends provide useful insight into how social media (will) become more and more intertwined with our daily lives and how this can act as catalyst in how we shop.

In conclusion, social commerce is where hyper-personalization meets entertainment and shopping through immersive experiences that excite. The innovation lies – and this is potentially a paradigm shift – in the creation of a massive (alternative) social commerce ecosystem with many more and more complex relationships, where thousands of small businesses and merchants (could) compete on a (roughly) level playing field. well-known trade terms to attract the attention of the same consumers.

Mr. Panagiotis Criaris is a Business Leader in Financial Services and FinTech.