Investment in social selling platform Replika Software by LVMH and L'Oréal
In the ever-evolving world of digital commerce, social media platforms are increasingly becoming the hub of shopping experiences, with consumers expecting to discover, browse, and purchase products directly within their favourite apps. This shift is particularly prominent among Gen Z, who are driving significant sales in sectors like health and beauty.
The success of social commerce is heavily reliant on user-generated content and collaborations with influencers. Platforms are increasingly embedding shoppable features, making it seamless for users to purchase products featured in posts or videos. Brands are also leveraging artificial intelligence and machine learning to deliver personalized shopping experiences, such as tailored product recommendations and dynamic marketing content that resonates with users’ preferences.
In Asia Pacific, social commerce is becoming the dominant shopping method, with over 85% of consumers expected to shop primarily through social media by 2030. Viral trends and social buzz have a major influence on purchase decisions, with TikTok leading the way in markets like Thailand and Malaysia.
Major social media platforms like TikTok, Facebook, and Instagram are investing heavily in expanding their shopping features. TikTok, for instance, is expected to have 35.8 million buyers in 2025. Meanwhile, platforms like Pinterest, Sephora, Poshmark, and WhatsApp are integrating community-driven shopping experiences, live shopping events, and chat-based commerce to allow customers to buy items within their platforms.
One company poised to make a significant impact in the social commerce industry is Replika, which seeks to expand into other industries like healthcare, entertainment, travel, and electronics in the future. While Replika is not a commerce app, it recently secured funding from LVMH Luxury Ventures and L'Oréal Bold, allowing it to invest in its technology, create new features, and hire more employees. This funding will enable Replika to add more brands from various industries to its client lineup, pursuing its mission of "humanizing online shopping."
Meanwhile, beauty tech firm Perfect Corp., which integrated its AR beauty testing tools into Snapchat in December, raised $50 million in Series C funding earlier this month. This funding round, happening concurrently with a growing trend of companies expanding shoppable features on their platforms, underscores the potential for growth in the social commerce sector.
As social commerce continues to grow, brands are increasingly recognising its potential. Sephora, for example, sold more than 80 beauty brands through Instagram Checkout in June. With the seamless integration of shopping into social media apps, the future of retail looks set to be a social one.
Key Platforms and Features:
| Platform/ Brand | Notable Features/Expansions | Investment Focus | |-----------------|--------------------------------------------|-------------------------| | TikTok | Expanding shoppable features, live selling | E-commerce expansion | | Instagram | Shoppable posts, AR try-ons | Influencer collaboration| | Facebook | Marketplace, shopping ads | Buyer acquisition | | Pinterest | Shoppable pins, AR try-ons | Visual discovery | | Sephora | Live shopping, influencer posts | Social engagement | | Poshmark | Live “Posh Parties,” social selling | Community commerce | | WhatsApp | Chat commerce, order processing | Direct-to-consumer |
In conclusion, social commerce is experiencing explosive growth, driven by platform innovation, influencer marketing, and consumer demand for seamless, personalized shopping experiences. Notable investments are being made in enhancing in-app purchasing, live shopping, and chat-based commerce, with platforms like TikTok and WhatsApp leading the charge in new features and market expansions. As we move forward, it's clear that social commerce will continue to reshape the retail landscape.
- Brands are increasingly leveraging technology, such as artificial intelligence and machine learning, to deliver personalized shopping experiences through social media platforms.
- In Asia Pacific, social commerce is becoming the dominant shopping method, with platforms like TikTok leading the way in markets like Thailand and Malaysia.
- Sephora, a major beauty brand, has sold over 80 beauty brands through Instagram Checkout, demonstrating the potential of social commerce in the retail sector.
- Major social media platforms are investing heavily in expanding their shopping features, with companies like Replika poised to make a significant impact in the industry by expanding into sectors like healthcare, entertainment, travel, and electronics.
