The acceleration which started in e-commerce during the pandemic is a long-term phenomenon. 81% of global consumers say their shopping habits have been changed in that time. 92% of them believe that these changes will stay with them for a long time. Online shopping has become the standard, simplifying the process of acquiring goods and services and making delivery more reliable.
But changes in e-commerce are not limited to the growing volume of goods sold and the number of people of all ages shopping online. The way people make purchasing decisions and consumer expectations are also changing. The sudden strengthening of e-commerce has highlighted a universal need. We want contact with other people - including when we shop. You can point to many symptoms of this in e-commerce, but I will focus on three trends here. The first is the ever-increasing role of creators and new ways to involve them in marketing activities. The second is the growing role of conversation in sales - and the tools that enable it. The third is personalisation and the tools that enable greater immersion and truly blur the line between online and offline shopping.
Trust in creators
In five years, the market for creator-driven marketing activities has grown from $1.7 billion to $9.7 billion annually. This explosive growth should come as no surprise. Creators play a natural role as guides and sources of inspiration for people - including when it comes to purchasing decisions. More than half (51%) of consumers surveyed admit to getting shopping ideas from creators and celebrities. By making people feel that they 'know' creators and simply trust them, these creators can lend credibility to the brand on whose behalf they are speaking. 63% of 18-34 year olds say they believe what a creator says about a brand more than what a brand says about itself.
The power of creators' influence is very evident in another phenomenon whose popularity is growing rapidly - selling via live streaming. More than 800 million people participate in live broadcasts on Facebook and Instagram every day. We predict that 500 billion transactions will be made through them in 2022.
Live streaming shopping refers to the concept of 'shoppertainment' in the digital age, where influencers can use the interactivity and engagement enabled by social media platforms to showcase and sell products. Its success is largely driven by young people who have grown up surrounded by advanced digital technologies. 55% of Generation Z and 62% of Millennials admitted that they would be willing to buy directly from a livestream during which a brand and creator present a new product.
Just talk
Until recently, the most obvious way to contact companies online was by email to an address found on a website. Today, that's not enough, and many smaller companies don't even have a traditional website. Instead, they use conversational commerce. Their identity is a Facebook page or Instagram profile, and their main trading channel is Messenger.
More and more brands are selling products through social media profiles rather than their own apps or websites. This allows consumers to discover and purchase products entirely through the social platform, while sellers are using messaging to provide support throughout the process - so that buyers can ask questions and receive personalised assistance at any time.
62% of social media users say they would like to be able to talk to customer service via instant messaging. Talking to and supporting customers on an ongoing basis builds trusting relationships, which in turn increases loyalty and keeps customers coming back. The most iconic fashion brands were built on excellent in-store customer service - e-commerce has long failed to mirror this experience. Conversational commerce could finally change that.
Entering the metaverse
As consumers, we are more and more demanding, expecting new, more personalised and more engaging experiences. Thus, brands must provide consumers with new and more web-based ways to find, experience and buy the right products for them at every level of the sales funnel.
As Meta, we are investing in immersive technologies such as augmented reality (AR) that will further change the way people shop online. 74% of people surveyed believe that technologies such as virtual reality (VR) and augmented reality (AR) can bridge the online and offline worlds. While the metaverse is a vision that probably won't come to fruition until five to ten years from now, companies are already making increasingly bold use of AR and VR to blur the line between ecommerce and in-store shopping. Charlotte Tilbury customers, for example, can see what shade of lipstick suits them best, and Ray-Ban allows you to match your sunglasses to your face without visiting a boutique. With a more engaging experience, online commerce goes from being a mere 'buying' experience to a more enjoyable 'shopping' experience.
It can be expected that there will be more and more such examples over time, and that the experience of presence and personal contact with a consultant in online shopping will become deeper and deeper. That's why it's important to test and implement innovative solutions - such as augmented and virtual reality - now and experiment with them on platforms such as Facebook, Instagram, Messenger or WhatsApp. Consumers expect new experiences, and new solutions used now, will also be helpful in the future and in the metaverse.
Ewa Tumanow
Industry Manager, Retail & eCommerce, Central Eastern Europe
Meta
