About This Source - Bloomberg QuickTake: Now
Bloomberg L.P. is a privately held financial, software, data, and media company headquartered in Midtown Manhattan, New York City.
It was founded by Michael Bloomberg in 1981, with the help of Thomas Secunda, Duncan MacMillan, Charles Zegar, and a 12% ownership investment by Merrill Lynch.
Recent from Bloomberg QuickTake: Now:
Bloomberg Quicktake: Now published this video item, entitled “Facebook Chats Power a New $48 Billion Market in Social Commerce” – below is their description.
Have you tried social shopping on Instagram or WhatsApp? Shopping via social media is gaining popularity in Southeast Asia. Consumers’ affection for haggling and interacting with businesses is fueling a boom in social commerce. Unlike the U.S. or China, where most consumers do their internet shopping with established platforms run by companies like Amazon.com Inc. and Alibaba Group Holding Ltd., in Thailand almost half of all e-commerce takes place through social media or chat rooms on Facebook, WhatsApp or Line’s app.
Social commerce accounted for about 44% of Southeast Asia’s $109 billion e-commerce market last year, according to Bain & Co.
Customers can talk directly with store employees or the owners themselves about prices and sales, and the relationships built through personal conversations have helped drive social commerce’s popularity.
The rapid adoption of commerce via social media across the region could offer valuable lessons to internet giants like ByteDance Ltd. and Facebook’s Instagram, which are experimenting with the format as they try to disrupt the traditional styles of platform commerce.
The pandemic has led global brands such as Chanel and Louis Vuitton as well as Thai brick-and-mortar retailers to register for accounts on Line, spurring a 25% annual growth in official accounts in 2020, said Norasit Sitivechvichit, chief commercial officer of Thailand’s most-used messaging platform, which charges retailers based on their messaging activity and number of followers.
“Chat commerce has become a disruptor,” he said. “Not just small and medium-size enterprises are conducting chat commerce on Line, but also global and local corporate brands.”
Southeast Asian countries are natural places for the model, said Alessandro Cannarsi, a Singapore-based Bain & Co. partner. “The fact that these are very young, tech savvy populations, especially on mobile, and they’re very entrepreneurial, encourages social commerce,” he said.
Vietnam led the region, with social commerce accounting for 65% of its $22 billion online retail economy, compared to $4.2 billion in 2018. Social commerce revenue in Thailand grew from $3 billion three years ago to about $11 billion in 2020, half of the total e-commerce market.
“Because of Covid-19, it grew very quickly at a much faster pace than many other channels,” according to Pimnara Hirankasi, acting head of Analytics and Intelligence Research Department at Bank of Ayudhya Pcl.’s Krungsri Research. “Having a seller present to respond to customers’ questions builds engagement while also creating more confidence for buyers before making their purchases.”
A search for home decor, fashion accessories or tech gadgets on Facebook or Instagram will often lead shoppers to find businesses’ pages, wares offered and prices listed on social media profiles filled with carefully orchestrated photographs to make their pages look enticing, similar to a digital photo catalog or magazine.
Natthapatt Sooppapipatt, a 21-year-old Thai university student, buys clothes, collectible figurines and accessories for her dogs from small stores through Instagram, and likes the way she can communicate with a real person via the app. “Receiving bot replies like ‘we will reach out to you’ or ‘we are a bit busy right now’ makes me feel scammed,” she said. “I want to talk to a human, someone who can understand my wants and concerns.”
Unlike more established e-marketplaces, though, the chat applications on social media pages aren’t designed for commerce and don’t include payment systems, so customers need to use external payment methods, such as direct bank transfers or e-wallet services like Amazon Pay and GrabPay to finalize sales.
The popularity of social commerce creates challenges for regulators. Independent vendors or individuals operating home businesses on social media platforms can offer cheaper prices in part because they often don’t include tax charges, and authorities have difficulty confirming that stores operating on social media pages pay the correct amount of tax, according to Sommai Siriudomset, a spokesperson for Thailand’s Revenue Department.Bloomberg Quicktake: Now YouTube Channel
Got a comment? Leave your thoughts in the comments section, below. Please note comments are moderated before publication.
In This Story: China
7 Recent Items: China
In This Story: COVID-19
Covid-19 is the official WHO name given to the novel coronavirus which broke out in late 2019 and began to spread in the early months of 2020.
Symptoms of coronavirus
The main symptoms of coronavirus are:
- a persistent new cough (non productive, dry)
- a high temperature (e.g. head feels warm to the touch)
- shortness of breath (if this is abnormal for the individual, or increased)
Latest News about Covid-19
Below are stories from around the globe related to the 2020 outbreak of novel Coronavirus – since the WHO gave the Covid-19 naming. Most recent items are posted nearest the top.