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A new study by Accenture found that the US $492 billion global social commerce industry is expected to grow three times as fast as traditional ecommerce to US $1.2 trillion by 2025. Growth is predicted to be driven primarily by Gen Z and Millennial social media users, accounting for 62% of global social commerce spending by 2025.

According to Accenture’s report, “Why Shopping’s Set for a Social Revolution,” social commerce means a person’s entire shopping experience — from product discovery to the check-out process — takes place on a social media platform. Just under two thirds (64%) of social media users surveyed said they made a social commerce purchase in the last year, which Accenture estimates to reflect nearly 2 billion social buyers globally.

“The pandemic showed how much people use social platforms as the entry point for everything they do online — news, entertainment and communication.” said Robin Murdoch, global Software & Platforms industry lead at Accenture. “The steady rise in time spent on social media reflects how essential these platforms are in our daily life. They’re reshaping how people buy and sell, which provides platforms and brands with new opportunities for user experiences and revenue streams.”

Social Commerce

 

While the opportunity is significant for large businesses, individuals and smaller brands also stand to benefit from it. More than half (59%) of social buyers surveyed said they are more likely to support small and medium-sized businesses through social media commerce than when shopping through ecommerce websites. Furthermore, 63% said they are more likely to buy from the same seller again, showing the benefits of social commerce in building loyalty and driving repeat purchases.

“Social commerce is a levelling force that is driven by the creativity, ingenuity and power of people. It empowers smaller brands and individuals and makes big brands reevaluate their relevance for a marketplace of millions of individuals,” said Oliver Wright, global Consumer Goods and Services lead at Accenture. “Getting social commerce right will require creators, resellers and brands to bring their products and services where the consumer is, and will be, rather than the other way around. It means working together within a dynamic ecosystem of platforms, marketplaces, social media and influencers to share data, insights and capabilities to deliver the right incentives and best consumer experience across an integrated digital marketplace.”

Social Commerce

Half of social media users surveyed, however, indicate they are concerned that social commerce purchases will not be protected or refunded properly, making trust the biggest barrier to adoption, as it was for eCommerce at its beginning.

“Those who have yet to use social commerce say one reason they are held back is their lack of trust in the authenticity of social sellers, while active social commerce users point to poor policies on returns, refunds and exchanges as an area for improvement,” said Wright. “Trust is an issue that will take time to overcome, but the sellers who focus on these areas will be better positioned to grow market share.”

Social Commerce: Who is Buying What

Accenture’s report found that by 2025 the highest number of social media commerce purchases globally are expected in clothing (18% of all s-commerce by 2025), consumer electronics (13%) and home décor (7%). Fresh food and snack items also represent a large product category (13%) although sales are nearly exclusive to China. Beauty and personal care, although smaller in terms of total social commerce sales, is predicted to quickly gain ground on eCommerce and capture over 40% of digital spend on average for this category in key markets by 2025.

Among the study’s other findings:

Consumers in developing countries are more likely to use social commerce and do so often. Eight out of ten social media users in China use social commerce to make purchases for a given category, while the majority of social media users in the U.K. and U.S. have yet to make a purchase via social commerce.
Shoppers in China, India, and Brazil care more about features that help them discover and evaluate potential purchases while those in the U.K. and U.S. place more importance on pricing and discounts.
Trust is more important to older generations than younger generations. Older shoppers emphasize security features and value brand familiarity while younger generations are attracted to livestreams and put more faith in buyer reviews.

Research methodology

Accenture Research conducted a series of studies on s-commerce to better understand the nature of this opportunity. We designed and fielded an online survey of 10,053 social media users in China, India, Brazil, the U.S. and the U.K. The online study was conducted August 12th – September 3rd, 2021. We also conducted in-depth interviews with shoppers and sellers from those same five markets between May 26th and June 2nd, 2021.

Accenture’s market forecasts were produced using econometric modelling, considering the optimization of consumers’ preferences to accelerating existing market momentum. The social commerce market includes products or services ordered via social networks, regardless of the method of payment or fulfilment, covering business to consumer (B2C) and consumer to consumer (C2C) transactions.

What: NBCUniversal Telemundo Enterprises expands Fluency Studios with the launch of “Fluency Plus,” a new, bilingual digital production studio. 
Why it matters: Division expands Fluency Studios to broaden audience, as well as evolve content and formats to address the needs of 13M+ Hispanic Millennials. 

NBCUniversal Telemundo Enterprises announced the expansion of Fluency Studios with the launch of “Fluency Plus,” a new, bilingual digital production studio. The multiplatform digital content studio will provide a broad range of bilingual digital programming to more than 13 million Hispanic Millennials and members of Gen Z, a growing audience that identifies as bilingual and ambicultural, defined as “200%ers™” – 100% Latino and 100% American. The digital content will range from entertainment and lifestyle, to food, family, fashion, innovation and more. Fluency productions will move from Los Angeles to Miami in order to leverage the latest digital technology in NBCUniversal Telemundo Enterprises’ new state-of-the-art global headquarters in 2018.

“Fluency Plus” will produce a variety of English- and Spanish-language offerings beyond theatrical, including web and social-first series, mini-series, alternative, comedy and 360° virtual reality experiences that super-serve Millennial bilingual Hispanics with culturally relevant content year round. As part of the NBCUniversal portfolio, Fluency’s scalability is powered to more than 13 million Hispanic Millennials, which has attracted the attention of high-profile partners, including BuzzFeed, Snapchat, Tasty and Vox Media, among others.

“Fluency is now pivoting beyond its origins in Hispanic targeted feature films to incorporate a broad range of bilingual digital programming targeting Millennials and Gen Z,” said Peter E. Blacker, EVP, Digital and Emerging Business, NBCUniversal Telemundo Enterprises. “We are uniquely positioned to connect the large scale of the U.S. Hispanic audience with leading brands and partners.”

Marketed through a video-centric, social-first strategy aimed at super serving audiences in their preferred platforms and format, “Fluency Plus” will produce content that brings together true-to-life stories mirroring the unique bicultural Hispanic lifestyle – rooted simultaneously in two cultures, transcending language.

Upcoming programming highlights include:

  • “Frente-A-Frente,” exclusive behind-the-scenes access and special coverage of Telemundo award shows.  Telemundo will team up with BuzzFeed’s Latino-first brand “Pero Like” for exclusive interviews that explore the beautiful and hilarious differences of Latino subcultures. These activations will take place during the “Billboard Latin Music Awards,” “Premios Tu Mundo” and the “Latin American Music Awards.”
  • “Girl Talk,”a weekly live show where Hispanic women come together to discuss the most talked about topics that concern and excite real, everyday Latinas living in the U.S. Launching in summer 2018, “Girl Talk” will air via Facebook Live every week on the “Telemundo Mujer” Facebook page.
  • “Love Clicks,”a fully bilingual, 24/7 social-first reality competition series where, over seven weeks, fans will get to watch across every screen. In “Love Clicks,” the fan is in control, deciding camera views, awarding special activities and voting on their favorite couple to win the grand prize.
  • “Much Ado About Nada,” a modern twist on the traditional telenovela, co-produced in partnership with BuzzFeed and distributed via social episodes across NBCU platforms.
  • “MVTO”gives bilingual Hispanic millennials their daily dose of celebrity obsession, entertainment news and relatable humor, establishing a direct dialogue through cultural identity.
  • “No Inventes,” a video series under the “El Pulso via Mashable” brand that will explore the latest and most innovative tech creations in the market, providing insight on the coolest and most unusual products coming out of the tech and entrepreneur world, with an emphasis on Hispanic inventors.
  • “Party Crashers,”virtual reality and 360° video experiences tied to Telemundo’s award shows throughout the year, including the “Billboard Latin Music Awards,” “Premios Tu Mundo” and the “Latin American Music Awards.”
  • “Quinceañera,”a digi-social reality show that will follow Hispanic teenagers’ journeys preparing for their coming-of-age party, offering a real life close-up of the excitement and family drama surrounding one of the most emblematic Hispanic traditions.
  • “Secret Salsa,”launched in partnership with Tastemade, creates content for the U.S. Hispanic Millennial audience that feels as familiar as abuela’s cooking. In a saturated food market, “Secret Salsa” is rooted in cultural identity and represents commonalities all Latinos experience through food, regardless of language.
  • “Today’s Special,”launched under “Secret Salsa” with Tastemade, will set out to search for and discover the hidden Latino food joints of America, where traditional Hispanic ingredients and recipes blend with American culture.

 

 

 

 

 

What: Fullscreen’s latest research conducted by Leflein Associates  investigated media preferences and trends of Gen Z and millennials and how both generations significantly differ.
Why it matters: Millennials present a higher preference for traditional platforms (including “traditional digital”) than their Gen Z counterparts. Gen Zers are shifting away from text-based online content in particular, in favor of streaming content – especially video.

Fullscreen, an entertainment platform and content creator network, partenered with Leflein Associates to conduct an strategic research to achieve an even deeper understanding of how the youth audiences we engage with on a daily basis feel about themselves, the content they consume, and their relationships with brands.

Leflein Associates  investigated media preferences and trends, passions and values, influencer fandom, consumer journeys, and brand love –– and perhaps most significantly –– where Gen Z and millennials differ in these areas. For brands trying to reach Gen Z, results reveal several critical strategies:

Mind the Generational Gaps

Youth audiences are an important target for many brands, but not all brands recognize that there are actually two very different generations: millennials (18-34) and Gen Z (13-17). Both have very different sets of social media habits and brands should be aware that they cannot target both groups in the same way.

Millennials are relatively old school, with a higher preference for traditional platforms (including “traditional digital”) than their Gen Z counterparts. Gen Zers are shifting away from text-based online content in particular, in favor of streaming content – especially video.

Generation Brand Engagement

When marketers talk about how brands can best reach and engage with “young people”, they usually mean millennials. Or at least they used to. As it turns out, Gen Z is even more receptive to engaging with brands through social channels. In fact, they’re adept at fueling brand conversations by spreading the word throughout their social circles.

Top brand social brand engagement activities include:

Gen Z view digital video and short form clips almost six times as much as they read traditional digital publishers/blogs

Influencers

Influencers play a significant role in defining what youth audiences like, view, and buy.

Social Media

Gen Z uses Facebook and YouTube for entertainment; Facebook, Snapchat and Instagram for socializing; and Facebook, YouTube, Twitter and Pinterest for utility.Despite its reputation as a social home for older folks, Facebook still dominates for entertainment, socializing and utility for Gen Z.

Video

Gen Z prefers to watch, rather than read. They view digital video and short form clips almost six times as much as they read traditional digital publishers/blogs.

“Gen Z, the first generation born into a post-Google and social media world, is not only the most diverse generation yet, but also the generation with the greatest global perspective,” said Pete Stein, General Manager, Fullscreen. “Their continued inclination towards social content on their mobile phones – first seen in millennials – is changing the way that content is consumed, shared, and even created. Growing up in a completely digital world, they expect to have direct access to friends, celebrities and brands – and they expect all three to interact and share content in a way that’s relevant to their own personal interests and passions.”

 

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