Why social commerce is the next big thing

By Richard Fouts | October 7, 2012 | 1 Comment

When you combine the social nature of shopping with information, cloud and mobile (aka, the nexus of forces) you have the next big thing: social commerce.

In fact, I believe social commerce is what is unleashing the commerce everywhere phenomena.

Of course, the idea behind social commerce is hardly new, going back to Sunday afternoons on the Parthenon in ancient Greece – to the modern day Tupperware party. The latter, illustrates a social event that is very deliberate in its pairing with shopping (which, by the way, can get rather competitive). As soon as someone buys that latest ingenious Tupperware solution to a nagging problem we’ve all experienced in the kitchen for years – several other party participants (not to be outshone) pull out their wallet (whether they need the product or not).

Competitive shopping is the attribute behind the wildly successful home shopping network. Or consider my two sisters – who hate to shop alone, hence they go with each other – and often compete (whether they admit it or not) for the prize of who brings home the most number of shopping bags.

Millions of dollars might be spent on a clever ad campaign, but in the end it’s often the recommendation of a peer in a social environment that pushes us over the edge to buy. And it’s why creating an in-line shopping experience, while staying within our social network of choice has captured the imaginations of Facebook marketers. In fact, I’ll go out on a limb and predict that by 2017 5% sales of large CPG companies will come from socially-enabled commerce environments.

So, when I brag about my new Jag convertible on Facebook, it just may initiate a sale or two from one of my friends that, not to be outshone, has been eyeing a Bentley. And, of course, somewhere in that scenario is an opportunity for a game-based marketing idea.

As a digital marketer, all you need is an Internet connection and a good dose of imagination.

1 Comment
  1. 22 January 2013 at 8:50 am
    Ankita R. says:

    Hi Mr. Fouts.

    “I’ll go out on a limb and predict that by 2017 5% sales of large CPG companies will come from socially-enabled commerce environments.” Do you mean 5 % sales globally? Or only a US estimation?

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