Integrating the Online and Offline World - Social Commerce more and more important for the Fashion Industry

While many retailers in Western countries are still struggling to cope with the aftermath of the pandemic, China and other Asian markets are in the forefront of the industry’s next digital revolution.

Bridging boundaries
Social commerce has seen a huge boom in the last year or two as consumer demand for online experiences has grown significantly in times of store closures. Retailers in the APAC region have taken advantage of this development and have started to cross the boundary between the physical and digital worlds to increase their sales. Studies have shown that almost 40% of retail executives believe that online channels will play a crucial role in the customer experience in the future. More than 60% of those surveyed intend to further strengthen the link between offline and online, suggesting that social commerce will soon be part of everyday life.

Social commerce – the next mega trend?
Live streaming is one of the most important examples of so-called shoppertainment. This is where retailers (often together with an influencer) host a video in real time to engage with their clients and showcase their latest products. The trend began in 2016, and three years later, Chinese livestream revenues reached over $60 billion, with forecasts for the future already four times that amount. Social commerce has become so popular in recent years that other international markets are quickly following suit. Shopify, for example, has been exploring artificial intelligence (AI) technology to support digital fitting rooms that help consumers visualise how items would look on them. One study found that conversion rates for items that supported 3D models in augmented reality (AR) increased by 250%. Ralph Lauren and Snap Inc. have collaborated to develop branded clothing for virtual avatars, providing another innovative digital solution to increase sources of revenue in the fashion industry.

Social Commerce – The Future of Shopping?
The innovative concept of social commerce works so well because of its temporary nature. Influencers with millions of followers present a multitude of offers that have to be accepted almost immediately, leading people to buy out of fear of missing out. While this trend certainly benefits larger retailers working with big influencers, it also offers a new approach for smaller, emerging businesses.

Is Europe ready for shoppertainment?
A study commissioned by AliExpress showed that while “shoppertainment” is still developing in Europe, customers are “open to new trends and technologies that can enrich their shopping experience”. The survey, which involved nearly 15,000 people in France, Poland, Spain and the UK, shows that 70% of the respondents expressed interest in social commerce. In this context, almost half of the respondents said that they had consumed more virtual shopping experiences during the pandemic. “There are good opportunities for sellers and retailers who manage to strategically use this trend,” explains Vita Chang, Head of Content Operations Ecosystem at AliExpress. “When looking at the opportunities for the European market, it is essential to consider the differences between countries in order to develop the right promotional messages for the different consumer groups in each country.” An important point, as UK shoppers, for example, tend to prefer entertaining content suitable for mobile screens, while consumers in France are more likely to opt for content recommended by influencers. Shopify – a sales platform with a high market share – is also trying to bring shoppertainment to the western market. Various news services, including live streaming, were announced, as well as a partnership with TikTok to broadcast and expand the trend from the APAC region to other countries.

Live Shopping – an opportunity for fashion retailers?
Leading European fashion retailers such as Engelhorn, Gerry Weber, About You and bonprix have been offering their collections at live shopping events for some time. Compared to traditional online shopping, this concept offers the opportunity to see the looks on real people, to be inspired by different combinations and to ask questions about quality or delivery options in a live chat. In addition, the influencers appear ‘normal’ and likeable, rather than the size zero model stereotype. Many shoppers can relate to curvy or plus-size models, which makes them more likely to buy.

Conclusion:
Considering the initiatives taken by companies from the Asian region to open up the European market and the activities of European fashion suppliers in this area, it seems obvious that social commerce will become an integral part of the fashion retail sector in the near future.

Sources: K3, Engelhorn, Gerry Weber, About You, bonprix