Social platforms in China are increasingly facilitating e-commerce sales. And what this would mean for brands.
Sina Weibo and Alibaba hit the headlines in August when they announced a collaboration that would allow users of China’s leading microblogging platform to make direct purchases from Taobao.
As both accounts are rolled up into the same system, shoppers can use either Weibo or Taobao to log on. And Weibo has introduced a convenient new way of displaying Taobao products, which uses a “virtual card” to give information on pricing, popularity, and store credit rating as well as a one-click “buy” button. Sellers on Taobao will be able to quickly and easily upload product information by simply adding a software module to their existing store-management program. It’s all designed to make the purchase journey as simple as possible for the customer – and early reports suggest that it’s proving popular with both customers and brands.
Weibo has also taken a further step towards providing a truly social e-commerce experience – it offers users a “shopping assistant” named Ruyitao (that belongs to Alibaba), which sends private notifications whenever there are discounts on Taobao, Amazon, and 360buy.
Naturally, this blending of e-commerce and social networks has led to an upsurge in similar platforms looking for ways to take advantage of this particular sales strategy.
Douban takes its place in the social commerce arena
For example, following Sina Weibo’s collaboration with Alibaba, social networking service Douban launched a new channel “Dongxi” (Things) that explores “things” its users share within the platform.
Users simply click the “Post Things” button on the new channel and attach the product’s original purchase link. They can also show others the products that they “recommend”, “want” or “own”. Currently, however, to ensure quality control only invited users have the ability to do this, with full rights planned to roll out to all platform users by the end of the year. Like other websites, Douban is earning referral commission from shop owners and the launch of “Dongxi” marks a real commitment to Douban’s Pinterest-like e-commerce strategy.
Yihaodian: China’s social supermarket
One of China’s leading FMCG e-retailers (Walmart is a key investor), Yihaodian has arguably been ahead of the game when it comes to exploiting the benefits of social commerce. Five years ago, it took a pioneering step and embedded its site into Tianya, the popular social hub for blogging, microblogging, and sharing photo albums. Since then, it has entered into a strategic partnership with Sina.com and is looking at innovative ways to engage with and sell to its thriving social community.
Mogujie: Pictures speak louder than words
Effectively a social network that filters best-selling items on Taobao, Mogujie allows users to post the equivalent of “tweets” with product pictures. Mogujie revolves around sharing shopping experiences and comparing products and prices. Aimed at “connecting people who want to buy quality things with quality sellers”, shoppers can post links to their favourite purchases, which are then voted up the waterfall flow of content via “likes” or comments. Its revenue comes from commission from sellers and advertisements from both sellers and brands.
What this means for brands
The level of enthusiasm for - and continued development of - social platforms to facilitate e-commerce sales has made this type of promotional activity a “must-have” rather than a “nice-to-have”. Social sharing, comparison, and marketing campaigns are more likely to convert into physical purchases than equivalent activities in the West. As a result, they're becoming an integral part of brands’ e-commerce armory when it comes to establishing themselves and securing sales in China.
August 10-12: Revolutionize your digital marketing campaigns at ClickZ Live San Francisco! Educating marketers for over 15 years, our action-packed, educationally-focused agenda covers every aspect of digital marketing. Early Bird rates available through Friday, July 17 - save up to $300! Register today.
Elisa Harca is a digital retail and engagement expert with more than 13 years' experience working with some of the world's leading brands, including Swatch, MAC Cosmetics, Samsung, and Ericsson. She has worked with clients extensively in North America, Europe, and most recently Asia, and at Red Ant she is responsible for leading teams of digital specialists in Hong Kong and China in bringing its award-winning mobile retail technology to businesses across the territory. Recommended as an expert digital and mobile consultant by market leaders, she is a regular speaker at industry events including The HUB and UKTI's GREAT Weeks, and also hosts workshops for high-profile industry executives. Elisa is recognized worldwide for her professionalism, integrity, and her ability to help retailers navigate the increasingly complex global digital landscape.
US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.
E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.