Social-Commerce Landscape Continues to Grow
Social-commerce apps are ‘semi-open’ communities where micro-influencers and shopping enthusiasts can research and compare products, preview upcoming trends and enjoy shopping and fashion focused content. Many of these apps work with ‘agents’ as well as with brands, inviting influencers and ‘creators’ to join the community to create aspirational environments.
Little Red Book was one of the first social-commerce apps to receive international acclaim, with its success, new social-commerce apps are expanding and entering the market, hoping to provide social entertainment and smart shopping services for China’s high-end mobile consumers.
Originally targeting young millennials and overseas agents, social-commerce apps are continuously moving into the luxury market, and dealing directly with distributors and brands.
Below we have featured 3 key apps in the Social Commerce Market, listing their unique selling points and user segments.
Little Red Book Key Facts:
- 17 Million Users: 90% Female and 80% under 30 years old.
- Most popular products: beauty products and nutrition supplements but continued increase into fashion.
- Originally a strong focus on overseas buying and some grey market channels, but now they have an increased presence of brand content and lifestyle influencers.
- Home to influencers, Agents, Overseas Chinese and Brand partnerships.
Secoo Key Facts:
- Defines itself as a premium service aggregation platform.
- Has over 15 million high value registered users.
- Provides postal service for those ordering direct from overseas.
- June 2017, its GMV reached RMB 1.925 billion and is increasing at a rate of 50% each year.
- Boasts smart data behavior analysis and entertainment services (booking luxury cruises or concert tickets).
MyMM Key Facts:
- Owned by Maison Mode part of the Jane Crawford Joyce Group.
- Dedicated to a personalised online shopping experience
- Currently 1,200 brands and more than 60,000 SKUs.
- In-App customer service, community message boards as well as product previews and KOL content.
What does this mean for brands?
As high value consumers develop a sense of community on niche and semi-open channels, brands have to look at ways to target them outside of mainstream channels, but to ensure the overall strategy is integrated across platforms, for one seamless journey.
There are increasing opportunities for in-app advertising and micro-influencer content collaboration, etc.
Social-commerce apps are also key platforms for ‘Agents’ which provide grey market luxury goods for mainland consumers. Agent re-selling is a concern for many brands and these platforms are key areas to spot potential issues for brands.
To gain more insight into how to use Chinese digital marketing to target Chinese consumers, check out our Digital Marketing Masterclass series: https://emergingcomms.com/events/