For years, e-commerce has reshaped retail, shifting consumer behavior from brick-and-mortar stores to online platforms. This digital transformation has brought unparalleled convenience, but it has also stripped away the personal, interactive elements of shopping that many consumers cherish. Amid the debates on the decline of high street stores and the challenges faced by small businesses, a new trend is emerging, as affirmed by tech aficionado Abhinav Verma, that promises to blend the best of both worlds: Social Commerce.
Historically, high street shopping was the cornerstone of consumer culture. It provided a tactile experience, allowing customers to see, touch, and feel products before making a purchase. More importantly, it fostered a social environment where customers could interact with knowledgeable salespeople, ask questions, and make informed decisions. The rise of e-commerce, while convenient, sacrificed these elements. Shopping became a solitary activity, relying heavily on static images and often vague product descriptions.
Now, with social commerce, live streaming will be a game-changer for e-commerce. It brings back the human element, allowing customers to interact with sellers in real-time. During a live stream, a seller can showcase products, answer questions, and provide demonstrations. This format mitigates many of the issues associated with traditional e-commerce. Customers can see the product in action, ask specific questions about its features, and get an accurate sense of its size and quality. This transparency builds trust and helps customers make more informed decisions.
According to research, the global social commerce market is forecasted to reach $8.5 trillion by 2030. Abhinav Verma further shares, “Even TikTok’s findings show that live streaming can significantly boost customer engagement and conversion rates.” Countries like the USA and China have already embraced this trend, with live streaming becoming a cornerstone of their e-commerce strategy. Meanwhile, other regions are gradually catching up, recognizing the benefits of this interactive approach.
One of the most profound impacts of social commerce is its potential to empower small businesses. Both offline and online e-commerce require significant investment in terms of its operations, creating barriers for small enterprises. Social commerce, on the other hand, levels the playing field. Mr. Verma further highlights, “Sellers can operate from the convenience of their homes, needing little more than a smartphone, and an internet connection to reach the global audience.” This model is particularly beneficial for micro-enterprises and SMEs, allowing them to compete without the need for large physical stores or extensive marketing budgets.
The biggest challenge that e-commerce has mostly faced is maintaining and building trust. Concerns about product authenticity, misleading images, and vague descriptions have often left consumers hesitant. Social commerce, through its live streaming capabilities, addresses these issues head-on. Buyers would be able to take a look at the products as they are, without the distortion of heavy photo editing. They can ask sellers to compare items with familiar objects, see how products look in different lighting, and get a true sense of their dimensions and features.
This interactive element is particularly crucial in markets where consumer trust in online shopping is low. In countries where skepticism towards e-commerce remains high, the ability to engage directly with sellers and see products live can significantly boost confidence and encourage online purchases.
Abhinav Verma is truly in charge of this social commerce revolution and has a keen eye for spotting trends and innovations. He emphasizes the unique ability of live streaming to recreate the in-store shopping experience online. “It’s really very satisfying,” he says, “because at the end of the day, you are able to spot a wave, you are able to spot a trend, and you are able to convey this wave or trend to different people and really help them in their day-to-day lives.”
The implications of social commerce for small businesses are profound as per Mr. Verma. Entrepreneurs and artisans who previously relied on local foot traffic can now access a worldwide market. A small tailor, for instance, can showcase their shirts to thousands of potential customers through a single live stream, answering questions and demonstrating their products' quality and craftsmanship in real-time. This level of engagement and transparency helps build trust and loyalty, driving repeat business and long-term success.
The potential of social commerce extends far beyond any single market. While some countries have quickly embraced this trend, others lag behind. The USA, Thailand, Colombia, and China are leading the way, leveraging the social-commerce model to boost sales and engage consumers in new and exciting ways. In contrast, other regions are still catching up, with significant opportunities for growth as consumer trust in online shopping improves.
