Social Commerce &
Emerging Channels
From Search-Driven to Interest-Driven Shopping
Executive Summary
Reshaping the retail landscape
Social media is reshaping the retail landscape. With the growth of short videos, live streaming, and community-driven shopping, e-commerce is shifting from "search-driven" to "interest-driven." This report highlights the state of social commerce, key drivers, challenges, and future outlook.
Platforms like TikTok, Instagram, and WhatsApp are becoming powerful sales channels, with content creators and user-generated content playing critical roles in purchase decisions.
Industry Trends
Key developments in social commerce
Content-driven Shopping
Consumers increasingly discover products through short videos and live streams, blending shopping with entertainment experiences.
Growing Influence of KOLs and UGC
Key opinion leaders and user-generated content play a critical role in purchase decisions and brand trust.
Cross-border Social Commerce Expansion
Emerging markets such as Southeast Asia and Latin America are adopting platforms like TikTok, Instagram, and WhatsApp for cross-border sales.
Community-based Commerce
Private traffic and group-buying models are maturing, enhancing customer loyalty and repeat purchases.
Key Drivers
Forces accelerating social commerce growth
Rising Mobile User Engagement
Explosive growth in mobile social media usage driving discovery and purchase behavior.
Stronger Trust in Recommendations
Peer and influencer recommendations trusted more than traditional advertising.
Algorithmic Content Distribution
AI-powered algorithms enabling personalized content and product discovery.
Key Challenges
Critical obstacles in social commerce
Volatile Conversion Rates
Conversion rates remain volatile and heavily dependent on platform traffic rules and algorithm changes.
Consumer Trust Issues
Concerns about counterfeits, misleading promotions, and product quality affecting brand credibility.
High Operational Complexity
Managing multiple platforms with different requirements increases costs and operational burden.
Future Outlook
The growth trajectory
Social commerce will remain a major growth engine in retail. Brands that combine creative content, influencer partnerships, and strong community management will be better positioned to earn trust and drive sustainable growth in this dynamic landscape.
Build Your Social Commerce Team
Partner with VMMC to recruit social commerce managers, content strategists, KOL partnership experts, and community engagement specialists.