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Evolving eCommerce: Shopping on Social: Incl Impact of COVID-19 - US - October 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
COVID-19: Market context
EXECUTIVE SUMMARY 
Top takeaways 
Market overview 
Figure 1: Total US retail ecommerce sales and forecast, at current prices, 2015-25
Impact of COVID-19 on eCommerce and shopping on social
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 
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 
A strong ecommerce surge
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
Figure 4: Unemployment and underemployment, January 2007- September 2020
Figure 5: Consumer Sentiment Index, January 2007-September 2020
Impact of COVID-19 on ecommerce
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 
TikTok is here to stay
Figure 7: Oracle and Walmart partner to acquire TikTok
Consumers turn to deal hunting
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 
Using social channels for good
Figure 10: Brands use social media for social causes
Leveraging social content and commerce to slow the thumb scroll
Figure 11: Forever21 shoppable post
Showcase consumers’ skillsets in branded content
Figure 12: Winc feature
COMPANIES AND BRANDS – KEY TAKEAWAYS 
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
Facebook looks to capture more social shopping
Figure 13: Facebook Shop
Figure 14: Facebook shop small businesses
Instagram updates allow consumers to shop Live
Pinterest reassures consumers
Figure 15: Pinterest Verified Merchant Program
TikTok gets ready to shop
THE CONSUMER – KEY TAKEAWAYS  
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
Technology
Rights
Value
Experiences
PLATFORMS USED 
Consumers shop where they are
Figure 16: Social media platforms used, June 2020
Leisure use doesn’t translate to shopping use
Figure 17: Social media capability usage, June 2020
WAYS PLATFORMS ARE USED
Give consumers a reason to stop the scroll
Figure 18: Consumer interaction with social media, June 2020
Figure 19: Stay at Home with Vogue
Figure 20: Burger King TikTok challenge
Staying informed on brands through social
Figure 21: Consumer interaction with social media by generation, June 2020
Consumers find shoppable posts add value to their experience
Figure 22: Attitudes toward specific social capabilities, June 2020
Figure 23: Attitudes toward specific social capabilities by generation, June 2020
Social is a window to inspiration
Figure 24: How consumers use social media, June 2020
Figure 25: Sephora sales on Instagram
Count on (some) social interaction from older consumers
Figure 26: How consumers use social media by Generation, June 2020
CATEGORIES SHOPPED ON SOCIAL
Start small with shoppers
Figure 27: Products purchased on social, June 2020
Millennials shop smart to play more
Figure 28: Products purchased on social by Generation, June 2020
Figure 29: Ulta Beauty engages consumers through Instagram
MOTIVATION & BARRIERS
Value-based factors drive consumers to shop on social
Figure 30: Motivation to purchase from social channel, June 2020
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 
Figure 33: Motivation to purchase specific products on social media, by products interested in purchase, June 2020
Figure 34: Trader Joe’s Inside
Consumers use caution when choosing where to shop
Figure 35: Barriers to purchasing on social, June 2020
Figure 36: Farmacybeauty shoppable post
Process concerns hold back younger generations
Figure 37: Barriers to purchasing on social by generation, June 2020
Figure 38: Burt’s Bees with TrustedSite
SOCIAL MEDIA PLATFORM ATTRIBUTES
Brands need to be where it makes sense
Figure 39: Social media platform attributes, June 2020
Mapping consumers’ perceptions across platforms
Figure 40: Correspondence Analysis – Symmetrical map – Word association, June 2020
ATTITUDES TOWARD SHOPPING ON SOCIAL
Consumers are shopping, without feeling like they are shopping
Figure 41: Attitudes toward shopping on social media, June 2020
Provide product insight for younger shoppers
Figure 42: Attitudes toward shopping on social media by generation, June 2020
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Forecast
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE CONSUMER
Figure 43: Consumer interaction on social media

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