Table of Contents
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Total US retail ecommerce sales and forecast, at current prices, 2015-25
- Impact of COVID-19 on eCommerce and shopping on social
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on ecommerce, October 2020
- Opportunities and Challenges
- Streamline the shopping process to provide convenience to consumers
- Build consumer confidence in social commerce
- Drive consumers to shop small on social
The Market – Key Takeaways
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- eCommerce continues to see strong growth
- Social media offers a way to window shop online
- Economic downturn drives consumers to look for value
Market Size and Forecast
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- A strong ecommerce surge
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- Figure 3: Total US retail ecommerce sales and forecast, at current prices, 2015-25
- Macroeconomic factors
- High unemployment and shaky consumer confidence drive a focus on value
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- Figure 4: Unemployment and underemployment, January 2007- September 2020
- Figure 5: Consumer Sentiment Index, January 2007-September 2020
- Impact of COVID-19 on ecommerce
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- Figure 6: Short-, medium- and long-term impact of COVID-19 on ecommerce, July 2020
- Lockdown
- Re-emergence
- Recovery
- COVID-19: US context
- Learnings from the last recession
Market Factors
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- TikTok is here to stay
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- Figure 7: Oracle and Walmart partner to acquire TikTok
- Consumers turn to deal hunting
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- Figure 8: Disposable personal income change from previous period, January 2019-July 2020
- Figure 9: Unemployment and underemployment, January 2007- September 2020
- Social shopping provides all consumers a way to window shop online
- Using 5G to integrate digital experiences
- FACEing reality
Market Opportunities
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- Using social channels for good
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- Figure 10: Brands use social media for social causes
- Leveraging social content and commerce to slow the thumb scroll
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- Figure 11: Forever21 shoppable post
- Showcase consumers’ skillsets in branded content
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- Figure 12: Winc feature
Companies and Brands – Key Takeaways
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- Facebook aims to capture more of the social commerce market
- Instagram provides a new way to shop live
- Pinterest signals which brands are safe to shop
- TikTok steps into the social commerce competition
Competitive Strategies
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- Facebook looks to capture more social shopping
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- Figure 13: Facebook Shop
- Figure 14: Facebook shop small businesses
- Instagram updates allow consumers to shop Live
- Pinterest reassures consumers
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- Figure 15: Pinterest Verified Merchant Program
- TikTok gets ready to shop
The Consumer – Key Takeaways
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- Consumers shop on platforms they use most
- Experiences on social draw in shoppers
- Consumers still want value out of the social shopping experience
- Shoppers have concerns about social commerce
Consumer Trends and Shopping on Social
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- Technology
- Rights
- Value
- Experiences
Platforms Used
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- Consumers shop where they are
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- Figure 16: Social media platforms used, June 2020
- Leisure use doesn’t translate to shopping use
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- Figure 17: Social media capability usage, June 2020
Ways Platforms are Used
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- Give consumers a reason to stop the scroll
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- Figure 18: Consumer interaction with social media, June 2020
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- Figure 19: Stay at Home with Vogue
- Figure 20: Burger King TikTok challenge
- Staying informed on brands through social
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- Figure 21: Consumer interaction with social media by generation, June 2020
- Consumers find shoppable posts add value to their experience
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- Figure 22: Attitudes toward specific social capabilities, June 2020
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- Figure 23: Attitudes toward specific social capabilities by generation, June 2020
- Social is a window to inspiration
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- Figure 24: How consumers use social media, June 2020
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- Figure 25: Sephora sales on Instagram
- Count on (some) social interaction from older consumers
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- Figure 26: How consumers use social media by Generation, June 2020
Categories Shopped on Social
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- Start small with shoppers
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- Figure 27: Products purchased on social, June 2020
- Millennials shop smart to play more
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- Figure 28: Products purchased on social by Generation, June 2020
- Figure 29: Ulta Beauty engages consumers through Instagram
Motivation & Barriers
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- Value-based factors drive consumers to shop on social
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- Figure 30: Motivation to purchase from social channel, June 2020
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- Figure 31: Zappos Twitter review featured on Instagram
- Figure 32: TURF Analysis – Motivation to purchase from social channel, June 2020
- Elicit emotional responses in various categories
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- Figure 33: Motivation to purchase specific products on social media, by products interested in purchase, June 2020
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- Figure 34: Trader Joe’s Inside
- Consumers use caution when choosing where to shop
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- Figure 35: Barriers to purchasing on social, June 2020
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- Figure 36: Farmacybeauty shoppable post
- Process concerns hold back younger generations
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- Figure 37: Barriers to purchasing on social by generation, June 2020
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- Figure 38: Burt’s Bees with TrustedSite
Social Media Platform Attributes
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- Brands need to be where it makes sense
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- Figure 39: Social media platform attributes, June 2020
- Mapping consumers’ perceptions across platforms
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- Figure 40: Correspondence Analysis – Symmetrical map – Word association, June 2020
Attitudes Toward Shopping on Social
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- Consumers are shopping, without feeling like they are shopping
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- Figure 41: Attitudes toward shopping on social media, June 2020
- Provide product insight for younger shoppers
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- Figure 42: Attitudes toward shopping on social media by generation, June 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Forecast
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Consumer
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- Figure 43: Consumer interaction on social media
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