The second-largest ecommerce market in the world is the U.S with $586.9 billion. Make it easy for them to connect with KOLs and/or create content themselves. This is about dominating feeds, not banner real estate (which has its own benefit in converting consumers that are already in our funnel). The disconnect was that social metrics never translated into business impact. Countries like India, Indonesia, and Thailand are experiencing large rates of mobile-first internet connectivity, an increase in buying power, and more developed logistics infrastructure. Commerce: this is all about making sure that our products are priced competitively in relation to similar formats, value offers, or SKUs in offline retail. Ive spoken about this in depth in the Indian market here. As you likely already know, China is the world's largest market for E-commerce. Retail Social Commerce Sales in China Expected to Rise to $351.65 Billion in 2021. So powerful is influence today in China that social platforms are linking to sales (both on- and off-platform), and ecommerce platforms are rolling out social and content features for marketers to exploit. Get in touch with us. China's social commerce market is estimated to grow to $341.6 billion in 2022, representing a CAGR of 32% from 2019, according to financial firm Tianfeng. India is projected to have a $70B social commerce market by 2030 and Indonesia is projected to have a $25B market with unique niches like Muslim-focused apparel, maternal and baby care products, fast-moving consumer goods (FMCGs), fashion, and groceries. Despite the Coronavirus outbreak, the global e commerce growth rate is still going strong. Social commerce is very popular in Asia and particularly in China. That would be equivalent to 30.6% of the total population. Statista assumes no The fear of missing out, the selfie culture, consumer connectedness, and flexible return policies make it easy for people to be constantly looking for trends to follow and their next thing to buy. Research provider eMarketer forecasts that retail e-commerce sales worldwide will reach USD 5 trillion by 2021. So far, American tech companies have merely dabbled in social commerce; it comprises only 3% of U.S. ecommerce. Similarly, Pinduoduo, which began as a group buying platform has recently moved into live streaming through leveraging WeChat rooms. 15 This signals that numerous non-essential brick-and-mortar stores that were forced to close . America's social commerce subsector is also a much less significant component of its e-commerce market, and only made up 3% of last year's total online sales. This is the main form that youre likely used to. BEIJING, Aug. 24, 2020 /PRNewswire/ -- WeTrade Group INC (US: WETG) ("WeTrade Group" or "the Company"), a company providing technical services and solutions to membership-based social e-commerce . It's a meta trend that's typically called 'social commerce'. Found inside Page 305a Multimodal Discourse Analysis of the Discursive Strategies Used by Chinese Ecommerce Live-Streamer Austin Li Haiyan Ecommerce livestreaming, also known as live commerce or social commerce, has taken off over the past two years in We expect 2020 to be a year full of innovation and expansion in China's e-commerce market. China's emerging social e-commerce is playing an increasingly important role in driving digital economic growth, a business executive said during the World Internet Conference Wuzhen Summit . China's social commerce sales reached $186.04 billion in 2019, which is ten times the number of sales in the United States at . The organization declares to have 25-30% month-on-month growth throughout the recent years and has enabled . Found insideSocial Research, 79(3), 639668 Edwards, B. (2020, April 16). 'Heavy mountains' for Chinese humanities and social science academics in the quest for world-class universities. Ministry of Commerce People's Republic of China. 4. Gen Z represents 13% of household spending, relative to just 3% in the US. Always collect an email address. 16 Mobile commerce is expected to slightly outpace overall e-commerce, at a compound annual growth rate of 12 percent to 2023, when it will be a $1 . Found inside Page xivResearch on the Construction of Chinese Film and Television Industrialization System, Social Sciences Academic Press (China), 2020. 2. Blue Book on Film and TelevisionDevelopment Report of China's Film and Television Industry (2020), With regular retail coming to a full stop at the end of January, one would expect a massive boom in E-commerce. Found inside Page 46He, R.X., & Zhu, P. 2020. Research on Chinese fresh e-commerce from the perspective of business model: Taking FRESHHEMA as an example. In: Proceedings of the 4th International Conference on E-Education, E-Business and E-Technology. All important statistics are prepared by our experts available for direct download as PPT & PDF! By 2023, social commerce could account for a fifth of all online sales in China a staggering $166 billion. Today - hes been named as one of Time Magazine's Next 100 Most Influential people for pioneering Chinas $15B live-streaming e-commerce market. Brands do not only look at how to best acquire, engage, and convert consumers but also look at social-specific metrics like building word-of-mouth, identifying the right influencer or influencers to distribute content, managing communities of people that are interested in a specific type of product and, last but not least, creating reward- and CRM-led incentives for audiences to buy from a brand online. It is not uncommon for brands to develop SKUs specific to ecommerce channels only. Videos are able to cut through these barriers by providing a visual medium. Marketing Strategy. China is set to remain one of the world's most exciting e-commerce destinations, so an understanding of key trends is a must for any retailer looking to target this lucrative market. 4. A glimpse at why global social commerce is so powerful. For over a decade, brands have been monitoring what consumers have said online, through social listening and understanding the value of what consumers thought and how they reacted to activities that were social in nature. Should brands continue to play purely in classic commerce, they will likely cannibalize any equity they have built for short-term gain. Source: iResearch Global Group August 3, 2020. The practicalities of such a relationship allow for USPs to be explained more easily, and how that product is more advanced or improved versus its former version and a competitive equivalent. Youve probably already come across examples of this with influencers on Instagram - where you can buy the products theyre wearing or using directly through the app. The approach to planning ecommerce activities has also changed. Micro video apps like Douyin, Kuaishou, Alibaba, Mogu, and so . It is therefore necessary for brands to fully exploit the potential of this growing sector in the near future. Have any other ideas? For your security, we need to re-authenticate you. Found inside Page 139Ministry of Foreign Affairs of the People's Republic of China (2020a). WHO (2020d). BBC (2020). 47 48 49 50 transparency', did not last long.51 A few days later, Commerce 6.3 China' Response 139 6.4 Social Stigma and Political Spats. Marketers will find themselves developing an assortment and strategy unique to each platform. E-tailers - See a complete list of the contents of the China 2020: E-commerce Country Report and download your free copy today! Then, in 2019, he helped drive $US145 million in sales on e-retailer Taobao during China's Singles' day through a live streaming event. Found insideSumming up The social enterprise movement in China is less of a movement than the global one, as it is far too and commercial kind of enterprises lack access to venture capital, management skills and training (Jia & Desa, 2020). Found inside Page 346 the e-commerce livestreaming market (GMV caliber1) will reach 961 billion in 2020. It can be called a marketing myth. The uniqueness of China's e-commerce livestreaming is due to the Chinese social and economic background. E-tailers - See a complete list of the contents of the China 2020: E-commerce Country Report and download your free copy today! If you want to expand your business to the world's largest e-market, this is the book you need. Following up on a recent webinar for WFA members, Ali Zein Kazmi, VP Partnerships & Strategic Development, Asia & China, Ogilvy, provides insights into the opportunities and challenges of doing social commerce in China. This scale dwarfs the social commerce industry in the U.S., which was worth about $16.5B in 2018 - a tenth of the size of the $170B industry in China. Having said so, it is possible to divide them into three main categories: content-sharing . Convenience: as marketers, we need to think about convenience and experience, and we need to make sure the product once purchased is made available to the consumer within an acceptable timeframe. This growth is ascribed to surge in average time spend on social media platform during pandemic coupled with greater convenience for buyers to purchase products China is a mobile-first country. Please, varying languages and are not as literate. Sound like some weird one-off trend? Found inside Page 19019th IFIP WG 6.11 Conference on e-Business, e-Services, and e-Society, I3E 2020, Skukuza, South Africa, April 68, Change 32(2), 4546 (2017) Vongsraluang, N., Bhatiasevi, V.: The determinants of social commerce system success for Found inside Page 418IFIP WG 8.6 International Conference on Transfer and Diffusion of IT, TDIT 2020, Tiruchirappalli, India, Lin, J., Li, L., Yan, Y., Turel, O.: Understanding Chinese consumer engagement in social commerce: the roles of social support Goldman Sachs predicted that China's total E-commerce market will reach over USD $1.7 Trillion by 2020. In China, social commerce is already a $250 billion market, comprising nearly 12% of retail and has created 4 unicorns over the last 5 years with more than 20 funded companies. According to a report released by China Internet Watch, the total volume of sales from social e-commerce is predicted to increase to 2.06 trillion RMB by the end of 2020. Created in 2013, it works primarily through the exchange of user-generated photos and videos of product reviews, travel blogs, and lifestyle stories through Xiaohongshu's mobile application, where individuals can also shop . Our belief is that the social aspect of ecommerce will continue to help advertisers and agencies build brands in what has always been a promotions and percentage-off environment. Found inside Page 52Another phenomenon that is important to note when considering entering the Chinese market through s-commerce is the importance of celebrity endorsements. The rapid rise of social media has resulted in a prevalence of social media Found insideThe 2020 EU Industrial R&D Investment Scoreboard, Retrieved from: the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions. European Union Chamber of Commerce (2020). A recent research by BCG and Tencent shows that almost half of Chinese luxury shoppers receive information about brands through influencers/key online leaders (KOLs) posts on social platforms and brands social media accounts. Figure 16: Usage of group buy, April 2020. There's no hard and fast rule, but I'd recommend keeping your social commerce campaigns to $100 and below. China consumer report 2021 . This text provides general information. Franklin Chu. liability for the information given being complete or correct. Many channels, including Instagram, act as discovery engines for brands. Non-traditional DTC industries, like agriculture, have started to thrive on the platforms. Ill explain each of them in depth below. Traditionally, Costco charged small business owners a membership fee for exclusive access to discounted products in bulk. 2020 was no exception, with $100 billion spent over 11 days when Chinese shoppers snapped up deals . To put that into perspective, social commerce sales in China totaled $186.04 billion (RMB1.285 trillion) in 2019nearly 10 times the number of sales in the US, which reached $19.42 billion last year. Found inside Page 112An Introduction to Global Social Media Entertainment Stuart Cunningham, David Craig. Huang, Alice. 2020. Who Is Millionaire Li Jiaqi, China's 'Lipstick King'Who Raised More than US$145 Million in Sales on Singles' Day? The number of social commerce users reached 713 million in 2019, while its market size was estimated to surpass two trillion . The growth of social commerce . These small business owners would then resell the items to end consumers. Sure enough, Tencents WeChat would ban its customers from transacting on Alibabas Taobao, and Taobao built up its own content and influencer resource, doubling the work for the digital marketer and making life a bit more complicated for the CMO. For more information or questions, please contact Ranji David at r.david@wfanet.org, Selling to Chinas 'now' consumer through social commerce, VP Partnerships & Strategic Development, Asia & China, Ogilvy, WPP Report 'Content, Conversation, Commerce, The Evolution of Data-Driven Marketing: Preparing for Digital Medias Privacy-first Future, Webinar: Achieving data-driven marketing success - Balancing the need for mindset alongside strategy, Data Driven Marketing 2018 survey results, Digital Advertising to children under GDPR. Found inside Page 318China's Smart City Ambitions at The Time of Covid-19 https://www.iss.europa. eu/content/towards-urban-decoupling-china%E2%80%99s-smart-city- ambitions-time-covid-19 FBIC Group (2020) Social Commerce Add the publicly traded 'baby amazons' of emerging countries to your watchlist. McKinsey analysis based on numbers from iResearch. Yunji also incentivizes micro-store owners to recruit other store owners and new end consumers to the platform by offering them rewards. Selling to China's 'now' consumer through social commerce. The larger the team, the higher the discount. Only in 2018, the GMV (Gross Merchandise Volume) reached 626.85 billion Yuan with an incredible increase of 255.8% since the previous year, and it is expected to reach 2.86 trillion yuan in 2021.. Social commerce GMV in China 2015-2021. As a result, iiMedia Research claims that China's online grocery market can expect to grow 62.9% in 2020 to 264 billion RMB compared to a 29.2% growth last year. This is what we refer to as the now consumer. 2020. Reaching over 100 billion RMB of revenue generated in 2019, the Wanghong Economy keeps growing . Created in 2013, it works primarily through the exchange of user-generated photos and videos of product reviews, travel blogs, and lifestyle stories through Xiaohongshu's mobile application, where individuals can also shop . By Joe Devanesan | 9 July, 2020. Back in 2017, e-commerce sales outpaced estimates by $44.41 billion, driven largely by sales from leader Alibaba's Taobao and Tmall. Gen Z represents 13% of household spending, relative to just 3% in the US. However, you would expect a shampoo to be sent to your door step within a 24-hour timeframe. E-commerce in China during COVID-19. have a similar tiered city system. But this goes far beyond a new bag or shoes. They are marketplaces in which customers can look for products, compare them and purchase them while sharing their experiences with other users, and express their preferences while exchanging recommendations. The results were spectacular: the new "e-advisors" were followed by over 350,000 consumers, leading to many conversations and a boost in both online and brick-and-mortar sales. Both consumers and businesses have turned to e-commerce platforms as their alternative channels for continuity in these uncertain times. Social commerce will reach 13% of all ecommerce sales in China in 2021. Social commerce has grown exponentially in the last few years in China. Shop101 was established by Abhinav Jain and Aditya Gupta in 2015 and was officially launched in mid-2016. Once the team creates a purchase order through an app like Pinduoduo (PDD) or JD.com, they are shared among the initiators circle of friends on social media allowing more people to jump in on the discount. 'Social Commerce' is five years young. Livestreaming will become an even more important sales medium. Pioneered by apps like Yunji and Beidian, membership based social commerce is like a completely digital, end to end version of Costco. One example is, Ruhnn ($RUHN), a Chinese company that raised $125 million in an IPO in 2019. Where Social Media Meets E-Commerce = Social Commerce. Because of Chinas mobile first nature, consumers are much more accustomed to taking and watching videos on their smartphones. China's e-commerce market is growing at a phenomenal pace as a result of several factors. At one point selling almost $1B worth of food in 12 days - a feat that is putting it on track to disrupt the way people buy food in emerging markets. Farmers and fishermen have quickly become live-streaming stars in China. Many of them are well positioned to benefit from the rise in social commerce in their regions. However, such a straightforward conclusion is nowhere near the actual truth. Chinese eCommerce platform Pinduoduo was founded in 2015 and offers a broad range of productseverything from day-to-day groceries to appliances for your home. Facebook is the top social commerce platform in the US, with 56.1 million buyers in 2021, according to our inaugural forecast. Found inside Page 49Joint Communication to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment European Chamber of Commerce in China (2020) The Road Less Travelled. With a rising middle class, the demand for better quality goods has also increased. Most of them are at the Series A stage with recent raises in 2019 and 2020. As of the third quarter of 2020, Pinduoduo has 643.4 million monthly active users (Statista). We explain Found inside Page 475Examining WeChat Social Commerce Continuance Intention and Use of Incorporating Personality Traits. WeChat as Infrastructure: The Techno- Nationalist Shaping of Chinese Digital Platforms. Rossi, A. G., and S. Utkus (2020). What are the leading social commerce platforms in the US and China? Social e-commerce in China is already a gigantic market of $300 billion, and it is poised to grow even more in the coming years as a plethora of different services vie for top positions in the . However, in 2021 it is clear that e-consumers have adapted to the current global situation, and numbers in China have grown by an additional 17%. Updated: 2:35pm, 20 Oct, 2020. . Marketing Strategy. An entire industry has propped up around training new influencers to sell products through social channels, some of who have sold >$100M worth of products through their online stores. Found inside Page 523 Yearbooks, and Films The Revolutionary Era and the Period of Rule by Chairman Mao Zedong: 19211976 The Era of Economic Reform and Social Liberalization: 19782020 Specialized Works on the Chinese Communist Party Selected Blogs, China is light years ahead of the world when it comes to finding new ways to bring online shopping to the forefront. New, Insights into the worlds most important health markets, Figures and insights about the advertising and media world, Everything you need to know about the industry development, Find studies from all around the internet. for a full list of social commerce players assessed during this exercise.10 Box 1 ChinaLeading the way in social commerce Like the explosion of e-commerce in China which accounted for the majority11 of the $1.44 billion regional e-commerce market in 2017social commerce is also set to soar in the country.12 By 2020, social commerce data than referenced in the text. Retail Social Commerce Sales in the USA Were $26.97 Billion in 2020. 30 Social Commerce Statistics - Users, Revenue & Usage Stats : 1. 2020 China consumer report 2021 Special edition November 2020 Understanding Chinese Consumers: Growth Engine of the World. Chinese e-commerce is projected to be $1 trillion dollars in 2020, up from $862 billion in 2019. As the name implies, content is the key focus on content sharing platforms. Xiaohongshu, also known as Red, is a social media and e-commerce platform focusing on the fashion and shopping community. Source: eMarketer With over $1.935 trillion in ecommerce sales, China was the biggest ecommerce market in the world in 2019. Found inside Page 15Social commerce reintroduces the social aspect of shopping to e-commerce, increasing the degree of social presence in online environments. Social commerce is growing rapidly in China. McKinsey expects that, by 2020, China's online There is a broader discussion we could have around experience that is linked to convenience and the other Cs in this post. The core social commerce industry in China can be split into three categories. Among the biggest players in the social commerce app and market is Pinduoduo (PDD), which was founded in 2015 and is now the second . Social commerce will account for 13% of total e-commerce sales in 2021. Found inside Page 85This was because bike sharing created externalities to the society, where the cost may have outweighed the social issues it aims to it is one of the most prominent social-commerce platforms in China (Chinese Internet Weekly, 2019). Social commerce platforms share some commonalities. During the first quarter of 2020, online retail decreased by 0.8% compared to 2019. Found inside Page 733Beijing, China, May 2425. New York, Washington: The United Nations Social Media Nutzung in Unternehmen, checked on 6/3/2020. Hsu, P.-F., Kraemer, K. L., From e-commerce to social commerce: A close look at design features. A feat that the US is only starting to crack with initiatives like Instagrams Shops and the new partnerships between Shopify and TikTok. Found inside Page 305Chen, Y., Lu, F. and Zheng, S. (2020) 'A Study on the Influence of E-Commerce Live Streaming on Consumer Repurchase Intentions', International Journal of Marketing Studies. doi: 10.5539/ijms.v12n4p48. China Consumers Association (2021) Its business model is being replicated in a number of emerging markets with high density populations and price-sensitive consumers. This marks an increase of 806.2% over the past three years. The number of average monthly active users reached 724.6 million in the 1st quarter of 2021. Major sources of consumers of vertical social commerce platforms in China 2020, Number of WeChat e-commerce merchants in China 2018-2023, MAUs of community group buying services in China Q4 2020, by service provider, Distribution of social e-commerce users in China 2020, by age group, Leading sources for product information among social commerce users China 2020, Leading reasons of using live commerce among shoppers in China 2021, by city tier, Usage of community group buying in China 2020. However, in China, it's a disruptive force that changes the way consumers shop online. Social E-Commerce. Online sales of food items witnessed an increase of 26.4% over January and February compared to 20.2% in the same period in 2019. Social commerce is taking off in Indonesia, as 'shoppertainment' is raking in the big bucks in China. Found inside Page 138How Western Business Canand ShouldInfluence Social and Political Change in the Coming Decade Michael A. Santoro. Practicing Tough Love How can a company that wants to operate profitably promote human rights, the rule of law, China's social commerce market is estimated to grow at a 30.5% CAGR over the period of the analysis. Reciprocity is about giving a platform or an influencer (on that platform) the opportunity to talk about it to his followers as well. Similarly, Yunji, which IPO-ed in 2019, targets 3rd and 4th tier cities. While previously brands were able to refer users to external marketplaces, they're now able to directly manage inventory and orders, create a digital storefront, and build a presence on Weibo itself. 5. Social e-commerce in China is already a gigantic market of $300 billion, and it is poised to grow even more in the coming years as a plethora of different services vie for top . Click the link we sent to , or click here to log in. It has pioneered several new trends including social commerce, and consumer-to-manufacturer (C2M)." As of December 31, 2020, Pinduoduo has generated RMB 1.67 trillion gross merchandise value (GMV) in the last twelve months. from digitization, and explain how direct-to-consumer social commerce models can grow online traffic and acquire new users at optimized cost. At the moment, Asia-Pacific (APAC) leads the global e-commerce growth charge, outpacing all other continents with a forecasted growth of 25% or USD 2.271 trillion, representing a whopping 64.3% of global e-commerce spending. Videos have the same draw and convenience in China as photos have in the US, making China a hotbed for live streaming and other video based content, including commerce oriented content. Hector Retamal/AFP. These are platforms like TikTok, Instagram, Kuaishou, and Facebook who heavily rely on user-generated content and predictive algorithms. You can see from the above that the AoV by network comes out to about $50. In the following 5 chapters, you will quickly find the 26 most important statistics relating to "Social commerce in China". WeChat's Mini-program function, launched in January 2017 and now a key social commerce tool, saw the average time spent daily by users on Mini-programs increase by 25 percent during the pandemic. Following up on a recent webinar for WFA members, Ali Zein Kazmi, VP Partnerships & Strategic Development, Asia & China, Ogilvy, provides insights into the opportunities and challenges of doing social commerce in China. One of Indonesia's online marketplaces, Blibli, experienced an increased number of registered merchants by 90% in April 2020 compared to the previous month. The retail social commerce sector will increase to $474.81 billion by 2023, although it's still an emerging concept in the US. This all seems new, but it's actually a tiny, outdated part of the massive social commerce movement that was pioneered in China. Of course, China is no exception. Found inside Page 164By analysing data collected from Sina Weibo and Ali platform (a popular internet-based e-commerce marketplace in China), Z. Hou et al. (2020) found rumors and misinformation regarding prevention and treatment methods on social media, Found inside Page 988K. Z. K. Zhang and M. Benyoucef, Consumer behavior in social commerce: A literature review, Decis. Support Syst., vol. 86, pp. 95108, 2016, doi: 10.1016/j.dss.2016.04.001. P. Mura, C. Khoo-lattimore, E. Chiao, and L. Yang, Invest into early stage companies focusing on developing the KOL space in emerging markets, or develop one yourself. Additionally, many members of Tier 3 & 4 cities speak varying languages and are not as literate as other citizens. We look at global social commerce trends, China's roaring social ecommerce market and what U.S. retailers can learn from successful market leaders. Found inside Page 162Live commerce market in China was estimated at 440 billion yuan (63 $billion) in 2019 which is 220% more than in 2018. Blazquez, M., Zhang, T., Boardman, R., Henninger, C.E.: Exploring the effects of social commerce on consumers' Even after these initial integrations, Chinese super apps have a greater tendency and ability to become verticalized because of how many different business units they can cross promote. Social commerce sales in the US are expected to increase around 36% to $36.6 billion, according to new data from eMarketer. We are happy to help. Males and low earners trust themselves more. The future of e-commerce is social media. Figure 17: Buying from KOL, by gender, age, personal income, and city tier, April 2020. During China's lockdown, WeChat social commerce traffic increased by 83 percent, and Taobao live-streaming viewing figures increased sevenfold. Found inside Page 218(2016). retrieved from oecd.org: http://www. oecd.org/pisa/pisa-2015-china.htm Programmatic Advertising in China: eMarketer's Updated China Entertainment and Media Outlook 20162020. 'Social Commerce' Blossoms on Mobile Taobao. Global e-commerce keeps evolving with the . China saw sheer growth in its social commerce in the past five years. The market size of China's social commerce sector is expected to reach 2.07 trillion yuan ($302 billion) in 2019, an increase of 63.2 percent year-on-year, as the use of mobile technologies to . facts. Found inside Page 81ISSN: 0263-2373 eMarketer: US ecommerce will rise 18% in 2020 amid the Pandemic (2020). https://www.emarke 1046-1310 Linjuan, R.M.H.: Beyond liking or following: understanding public engagement on social networking sites in China.

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