Role of influencers in Social Commerce Gen Z and millennial users, the target audience for social commerce, have reduced attention spans and look for instant gratification with short-form content. This is where micro and nano content creators and their short-form content have created an enormous impact. There is a latent desire to form close-knit and robust communities, especially in the smaller suburban centers. There is also a greater emphasis on original content, and users prefer discovering it on their own rather than being fed curated content. This mutual trust between creators and their communities is a huge factor that drives social commerce. Buyers look for authentic and relatable content from creators they can identify with and trust for their expertise.
What lies in the future?
While social media and social commerce are both growing at a rapid pace, buoyed by a favorable business environment, for sustainable growth in the future, companies need to have good business metrics. If user acquisition costs remain high, growth will remain skewed. This is where healthy unit economics, high standards in quality, innovative brands and product tie-ups, and a tight leash on costs will be key differentiators. As Woovly Cofounder Neha Suyal puts into perspective, “Today, the millennial user demands a high degree of personalization and is heavily influenced by peers and social media. It is easy to go overboard in trying to acquire such customers. However, burning cash at a high rate is not sustainable. 50% of our users are organically acquired, and this is how we want to keep it, for an accelerated, yet sustainable, growth.”