China’s Social Commerce Continues upward Momentum


Social commerce has become the most powerful beyond-just-sales channel that no business in China can afford to ignore


Chinese consumers are highly mobile and highly social, making them a vast and unique market. They use mobile phones for every aspect of life and rely on social media platforms to discover brands and review products. The behavior of the younger generation is only pushing this trend forward. According to Anslysys, 89% of Chinese consumers born after 1990 will share their purchase experience online.

This same group is highly influenced by internet celebrities and wanghong market products and even develop their own brands. Increasingly often, they’re using live streaming video to sell products on social media platforms. WeChat now has a feature that allows for virtual product displays and portals to accompany live streaming presentations making it easier for consumers to buy.



 Social e-commerce is thriving now in China. The 5Cs of social e-commerce are content, customer voice, convenience, conversion, conversation and commerce. Moreover, the number of e-commerce users in China has reached 650 million and they average an annual spend of 6,104 RMB each. According to data, for every 100 RMB in sales, 3.6 RMB goes to platform costs, which have grown by a multiple of 1.7 since 2015, while from 2015-2018, CPM has increased by 286% on leading e-commerce platforms.



Social commerce isn’t  just beginning, is a reality now in China. Brands and e-commerce platforms can stay on trend by creating predictive, prescriptive and personalized experiences for their consumers. They can do so by blending social media and shopping, tracking lifetime customer relationships, and using big data to target specific markets with content and products suited to their taste profiles.



The interest in this type of e-commerce in China was born two years ago, when the GMV grew by 255.8 per cent to reach 626.85 billion yuan, compared to 176.20 billion yuan the previous year. The data refers to the main e-commerce platforms that combine social elements in their sales processes, such as Pinduoduo, Xiaohongshu and streaming video apps like iQiyi. Social commerce is the use of social networks in the context of e-commerce transactions and, in China, the gross value of goods for social e-commerce will increase from a planned 1.300 billion yuan this year to 2.86 billion yuan by 2021. The future of e-commerce is here



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