In today’s rapidly evolving digital landscape, social commerce has emerged as a pivotal factor for brands, particularly in Southeast Asia. This dynamic region is witnessing a surge in online shopping driven by social media platforms and the influential presence of key-opinion-leaders (KOLs). Brands that can tap into this synergy are well-positioned to thrive in the competitive e-commerce landscape.
The Rise of Social Commerce
As it stands, social commerce was already reshaping the ways in which consumers discover and engage with products. Unlike traditional e-commerce, where the journey begins on a retail website, social commerce integrates the shopping experience directly into social media platforms. This seamless integration allows consumers to shop while interacting with content they love, creating a more immersive and personalised shopping experience.
In Southeast Asia, where social media penetration is exceptionally high, platforms like Instagram and TikTok have evolved into powerful sales channels. Consumers are highly influenced by social content, making it critical for brands to develop robust social commerce strategies. According to McKinsey, the social commerce market is expected to expand to $145 billion by 2027, up from $67 billion today. This growth is largely driven by Gen Z and millennials, who are four times more likely to make purchases through social platforms than older generations, highlighting this demographic’s crucial role in driving the trend.
The Key Trends of Social Commerce
Several trends are shaping the future of social commerce in Southeast Asia. Platforms are evolving to make shopping more intuitive and integrated within social apps. Features like in-app purchases and shoppable content are making it easier for consumers to purchase products directly from their social media feed. However, contrary to the assumption that young consumers would be keen to impulse buy on social commerce due to its convenient in-app shopping process, many Gen Z consumers are not making impulse purchases at the point of inspiration. Instead, young consumers are increasingly using social media as a search engine to research products they’ve seen online or heard of in real life, seeking detailed information on the quality, fit and more. This research phase is crucial for building brand trust.
As shoppers increasingly demand authenticity, they want to see products being used in real life by other consumers—understanding who is using them, how they’re being used, and how they fit into their own lives, both practically and psychologically. The desire for authenticity and relevance is reshaping how brands must engage with consumers.
Building a sense of community around a brand is becoming increasingly important, as today’s consumers seek connections and engaging experiences that go beyond mere transactions. Platforms like YouTube, TikTok, and Instagram have become essential channels where Gen Z and millennials discover new brands, products, and trends, emphasising the need for brands to create meaningful interactions on social media.
The Synergy of Influencer Marketing with Social Commerce
Given these audience behaviours, it’s clear that strategically utilising influencers is essential for brands to bridge the gap between their products and the consumers, maintaining their social commerce momentum. KOLs, or influencers, play a vital role in driving social commerce. Their ability to connect with audiences authentically and persuasively makes them invaluable assets for brands looking to enhance their online presence and boost sales. Effective KOL partnerships can transform a brand’s e-commerce performance by driving significant traffic to social media pages and leading to substantial increases in online sales. The influencers’ authentic endorsements resonate with their followers, highlighting the power of genuine connections in social commerce.
This often begins by analysing the client brand’s market situation, using AI to craft effective strategies. For instance, this involves guiding a client into launching their social commerce site on Shopee and Lazada, and being their first time engaging with KOLs. For this to work out, this strategy focused on partnering with niche influencers to build awareness and trust.
Key Trends and Insights in Influencer Marketing
In the evolving landscape of influencer marketing, micro-influencers with smaller but highly engaged audiences are becoming increasingly valuable. Their niche appeal and close-knit communities often result in higher engagement rates and more effective conversions. Today’s consumers value authenticity, favoring brands and influencers that prioritize transparency and genuine interactions. This trend highlights the importance of selecting influencers who align with a brand’s values and messages. Influencers now have greater creative control over how they present a brand or product as well, knowing what provides value to their followers.
For example, fintech brand WorldFirst, a subsidiary of Ant Group, partnered with Kian Golzari, a renowned product sourcing expert. Kian, already a user of WorldFirst before the collaboration, rolled out campaigns educating his followers on how he conducts cross-border transactions with his suppliers. This allowed his followers to get an authentic glimpse into the WorldFirst’s product through Kian’s valuable content, fostering genuine interaction with his community.
User-generated content (UGC) is also gaining traction due to its authenticity and relatability, providing a cost-effective alternative to traditional influencer marketing. It allows brands to tap into real-life experiences and perspectives of their target audience. Moreover, brands are also shifting towards long-term partnerships with influencers rather than one-off campaigns, aiming to build sustained relationships and deeper trust with the audience.
The Future of Social Commerce and Influencer Marketing
Looking ahead, the future of social commerce and influencer marketing is promising and full of potential, driven by advancements in technology. Innovations like augmented reality (AR) and artificial intelligence (AI) are set to transform the consumer journey, making it more immersive and personalised. Aside from enabling marketers to tailor personalised contents more effectively, AI is also revolutionising the landscape by enhancing campaign precision, predicting consumer preferences, and enabling actionable insights.
We will see even deeper AI integration within platforms, such as TikTok’s generative AI avatars and AI-powered dubbing for multilingual content, which are expanding the reach and impact of social commerce. At the same time, virtual reality (VR) technologies are enabling users to visualise products in their own environment, greatly enhancing the shopping experience and influencing purchasing decisions.
Brands that can strategically adapt to and leverage the synergy between KOLs and social commerce are poised to unlock new opportunities and drive significant growth in the e-commerce space. As this new era of social commerce unfolds, those who understand and harness its potential will not just survive but also lead the way in this new era of social commerce.
This thought leadership is written by Ynes Nar (YJ), Head of Account, Marketing Strategy & Client Servicing at Tomato Interactive Singapore (a BlueFocus company)
