Agha’s goal is to build “the first radically honest commerce company” in the world.įlip solves a growing pain point in the creator landscape - monetisation. Only users who have bought a product through its app can create video reviews, ensuring authenticity. “There’s nothing honest on the internet anymore, and it’s impossible to know what is a good or bad product,” says Noor Agha, founder and chief executive of Flip. No more #sponconĪuthenticity and interactivity are the trends that will drive modern social media, experts say. While only one in 10 US consumers have purchased from a live stream, that will jump to one in four within six years, according to predictions via Accenture. Increasing e-commerce integration in mainstream platforms and emerging niche startups will help to drive the social commerce space, which he forecasts will grow about 20 per cent year-on-year. There’s a lot that has to change before we get there but this is definitely a high growth area,” says Moorut. “Consumers are still engaging with social media either for entertainment and fun, or to engage with friends and peers, rather than looking to purchase. However, it’s been slow to catch on in the US, where it is predicted to reach $36 billion this year across all social platforms, most notably Instagram, Pinterest, Facebook, Snapchat and Tiktok, according to Emarketer, an e-commerce research company. They point to China, where social commerce is more established and forecast to exceed $300 billion in annual sales in 2022. The social commerce market in the West is a long way off the peak of what it can achieve, experts agree. As a retail channel, social commerce only accounts for about 4 per cent of total sales for brands across various industries. While a quarter of US consumers find inspiration about products on social media, only 10 or 11 per cent are actually purchasing through social platforms, according to Gartner data, he says. “It’s one of the marketing and sales channels expected to grow the fastest globally,” says Matt Moorut, senior principal analyst at Gartner. Investors see the growth potential in social commerce. You need to produce a lot of short videos across different channels and you need to renew it quickly.” High quality content can drive conversion of up to 40 per cent, she adds. “Big corporations such as L’Oreal, Shiseido and Estee Lauder Companies are all investing heavily in content production hubs because social commerce is driven by content. Many brands have spent over 50 per cent of their digital budgets on short videos and livestream content this year, says Audrey Depraeter-Montacel, global beauty lead at Accenture. Beauty companies themselves are investing heavily in the integration of social commerce within their businesses.
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