Social Commerce and Live Shopping: How Social Media is Replacing Online Stores and Becoming Money Machines

NoLimit Indonesia – Social media has changed roles in Southeast Asia. The platform that was previously used for socializing and sharing has now turned into a high-speed digital shopping center called Social Commerce. Entertainment and shopping are now one unit.

The latest data shows that the e-commerce market in Southeast Asia will be huge, with a report from e-Conomy SEA estimated to be worth more than $180 billion this year. Remarkably, this growth was driven by Video and Live Shopping sales formats. These two methods are expected to account for a quarter (25%) of all transaction value by 2025, a very rapid increase in a short period of time.

The Adrenaline Rush: The Psychological Reasons Behind Live Shopping

Live Shopping is the main key to Social Commerce. This model is successful because it uses psychological tricks, namely exploiting consumers’ desire to feel connected and feelings of anxiety if they don’t buy immediately (Fear of Missing Out or FOMO).

Trust is the most important thing in online shopping, and Live Shopping helps build it. When an e-commerce product feels mediocre, direct interaction with a seemingly honest host, plus outright positive comments from other shoppers, is much more convincing evidence than reading lots of reviews.

Therefore, big brands now prefer to work with small Influencers (Micro and Nano Influencers) who are close to their audience, because this is more successful than placing advertisements on expensive billboards.

Artificial Intelligence (AI): From chat bot Become Personal Buyer

Behind the many live broadcasts Direct Shoppingthere is an important role that is rarely realized: Artificial Intelligence (AI). In the past, AI only answered simple questions on chatbots. Now, his role is much bigger. AI functions as a personal sales assistant (personal shopper) for billions of users.

1. Hyper-Personalization: AI algorithms map video viewing behavior, social media interactions, and even duration scrolling users to predict with high accuracy what products are most likely to be purchased. Recommendations that appear in feeding now it feels so personal, almost telepathic.
2. Solution Test Maya: Feature Augmented Reality (AR) AI-powered technology allows consumers to “try on” lipstick, sneakersor even set up a virtual sofa in their living room via camera smartphone. This is the platform’s serious attempt to address a classic problem electronic commerce: doubts about not being able to touch the product.

Soon, we’ll see completely AI-generated hosts guiding live broadcasts for 24 hours a day. This AI host will answer product questions intelligently and ensure the Social Commerce process runs non-stop.

Key Brand Strategies for Success in the Era of Social Commerce

If brands want to be successful in the era of Social Commerce, they must immediately change completely. They must implement a “Content First, Sales Second” strategy (Content-First, Commerce Second). This means short videos should grab the viewer’s attention in just the first three seconds, entertain them, and only then offer a product for sale.

Besides that, brand required to abandon the mentality electronic commerce old people who rely on advertising banner static, and invest in:

• Full Integration Product Marking: Ensure each content asset, from Roll until Storyconnect directly to the product catalog so consumers can checkout without pause.
• MCN Alliance: In collaboration with Multi-Channel Network (MCN) which manages creator high performance. This MCN is an intelligence unit that understands the intricacies of algorithms live streaming and time prime time optimal (often between 19.00 – 21.00 WIB).

Social Commerce is the digital competition that is happening today. It’s a combination of speed, emotional engagement, and AI’s ability to predict, all of which results in an incredible number of transactions. Brands that are unwilling to change and still consider social media only for brand promotion will fall far short of this live-streaming money machine.

For additional information, Social Commerce is a business model electronic commerce (electronic commerce) where the sale of products and services occurs directly within platforms social media, not just relying on it link to the shop on line external.

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