Rise of Social Commerce

Rise of social commerce

The direct observation shows that 30 items sold more than 1,000 purchases are recorded from Coupang. Among 30 items, food category is counted as 63% and the categories related with beauty are recorded as 17%. This means that lots of consumers using social commerce sites are interested in food and beauty products. Especially, the consumers who haven't purchased the beauty items, because of relatively higher price, are trying to experience the beauty service with cheaper price. In this sense, the satisfaction for the consumers of food and beauty service could be the key factor for the success. That is, making to satisfy the existing customers could be leading to 'Loyal Customers' and also leading potential customers to purchase those diverse items with the word of mouth method.

Moreover, according to the survey, indirect method, by asking the consumers using the social commerce site, I can figure out that female users occupy 72% and the twenties and thirties are 79%. It means that female having purchase power in twenties and thirties would be the main customers. Besides, The food item(Restaurant) also has ranked the first position just like the direct method above. Furthermore, the data show that 61% of consumers are satisfied with the purchased item. Moreover, price factor is the best crucial point regarding satisfaction and the disappoint factors are the dazzling advertisement and the discrimination for coupon users, which is recorded 32% and 23% respectively. Moreover, even though social commerce site release new "Deal" at midnight, the 46% of consumers are using these site at morning time. This is because many consumers are using computers after going to the office. Therefore, those sites need to consider this point definitely. And also, one deal per one day policy should be re-considered, because the consumers who did see the site are not willing to click these sites again within a day..

Base on those data, the pattern of consumers would be defined as 'Low effort Hierarchy", because the consumers usually tend to purchase those items firstly with price competitiveness rather than other factors and then based on the satisfaction level such as quality or service , they are willing to decide to make the purchase again.

Recommendation First recommendation is 'PoP Deal', which means that as I mentioned above many users are not willing to access the site again after the day's deal. Therefore, PoP deal, guerrilla deal regardless of time, could be the solution to increase the access numbers which is definitely related with sales.

Second one is to discriminate the discount rate. In other words, 'Attraction Effect' could be applied, meaning that slightly lower discount rate could be positioned with longer validity period. That is, the original item with higher discount rate and shorter validity period

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