Customers crave connection. A relationship with brands they love, trust and actively advocate for in social spaces. But can social commerce really deliver for those willing to dive headlong into this digital ecosystem? And is it even right for your brand?
By 2028, the global market is on track to explode past $1trn, and with the UK enjoying robust double-digit growth, it would be remiss of retailers to simply sit on the sidelines of this opportunity.
However, this isn’t simply another plug-and-play sales channel to add to the mix; it demands a more intricate approach. Scrambling to bolt transactional ads onto sales funnels isn’t the answer to – or the definition of – social commerce.
It is a commerce experience enhanced by social interaction or peer influence across multiple platforms – social media, UGC on a brand’s native ecommerce site, ratings/reviews and user communities. It’s a blend of content creation, community management and customer engagement, which drives seamless transactions but can also create operational complexities far beyond social advertising and retargeting campaigns.
Social commerce certainly reflects how many people want to interact with brands today – product discovery, digital purchase mechanics and like-minded communities of brand advocates are all available at the tap of an app.
Gen Z may see live shopping as entertainment, while more senior shoppers seek utility and reassurance
However, short-term revenue pressure from stakeholders and the fight for constrained consumer spend understandably heighten the temptation to over-invest in bottom-of-the-funnel tactics. For those willing to invest in a thoughtful social commerce strategy, the greatest rewards will be reserved for the brands who patiently foster loyalty and ongoing authentic engagement.
Pinpointing your product positioning between immediate, short-term transactional relationships and those more aspirational (often premium) and emotive customer connections will be key. Not all categories will benefit equally from the same playbook though. Take the beauty and fashion sectors – these thrive on influencer partnerships, “get ready with me” livestreams, and peer-to-peer recommendations. TikTok Shop has turned countless indie brands into overnight successes on the back of viral product ‘moments’.
Conversely, for hardware, commoditised consumer goods or B2B products, the same tactics may have less impact. More straightforward, functional approaches may succeed, but persistent brand-building and community efforts can fall flat with these more transactional purchase decisions. The message? Know your audience and their expectations inside out. Gen Z may see live shopping as entertainment, while more senior shoppers seek utility and reassurance.
For a glimpse of the future – and the potential upside – simply look to Asia. Brands in the region lead the charge in social commerce, with 81% of China’s population using livestreaming to purchase items last year. There, the blend of entertainment, social interaction and commerce is woven into the digital fabric of life.
TikTok Shop has turned countless indie brands into overnight successes on the back of viral product ‘moments’
What can we learn from this? First, connection is key – livestreams work because they combine immediacy, trust-building and convenience. Second, platforms in Asia have mastered the elimination of friction at every stage of the purchase funnel. And third, cultural fit. What works in one market may not resonate elsewhere, reinforcing the need to craft experiences unique to your brand and customers.
There is a huge opportunity for brands and retailers in this space, but execution is key. Start small – test targeted approaches in your vertical before scaling up. Focus on one or two platforms where your audience thrives and trial initiatives like shoppable posts or micro-influencer partnerships.
Build genuine connections – think live Q&A sessions or responding actively to customer comments to foster community. And don’t chase every trend; evaluate critically, refine strategies and commit to consistent, sustainable growth.
Finally, use platform data and analytics to track engagement, sentiment and repeat purchases, balancing quick wins with long-term insights. And, critically, find consensus in the C-suite around the leading indicators of brand value and revenue growth – this is a long game, and true ROI won’t necessarily be immediately forthcoming.
Asia shows us that social commerce isn’t a trend trap – executed thoughtfully, it’s an important part of modern retail’s next era. Savvy retailers will understand that it’s a long-term commitment to authentic brand-building.
You can have the best of both worlds – a blend of short-term tactics to keep immediate pace with competitors allied to the distinctive, enduring effects of strengthening your brand ‘halo’. But merely dipping your toe in the water probably won’t cut the social mustard.
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