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Social Commerce Services by liaoqinmei

VIEWS: 5 PAGES: 95

									Social Commerce
Social Network Study 2011
SNU IDB
Outline
 Social Commerce
 Social Commerce Sites
   –   Groupon
   –   LivingSocial
   –   Etsy
   –   Ticket Monster
   –   Coupang
   –   One a day




                          2
Introduction
 Social commerce
   – A subset of electronic commerce that involves using social media, online
     media that supports social interaction and user contributions, to assist in
     the online buying and selling of products and services




                                     Social
              e-Commerce                             Social Media
                                   Commerce




                                        3
Introduction
 “Social commerce”
   – Introduced by Yahoo! In Nov 2005
   – Describe a set of online collaborative shopping tools
        Shared pick lists, user ratings, and other user-generated content-sharing of
         online product information and advice


 What is new?
   – Range of social commerce tools and opportunities are expanded
   –  link social media platforms to e-commerce platforms




                                          4
Introduction
 Two central activities
   – 1. putting water-coolers next to tills
        Helping people connect where they buy
         by adding and linking social media tools
         and content to e-commerce sites
        E.g., Amazon – rate and review products




   – 2. putting cash tills next to water-coolers
        Helping people buy where they connect
         by embedding social media stores and
         storefronts to popular social media platforms
        E.g., Best buy’s storefront in Facebook




                                          5
Concept


                                          Use the services



                   Register services        Social           buy services
        Local
                                          Commerce
       Service                                                                 Customer
                                           Service
       Provider         Give back the                        Pay the price
                                           Provider
                        profits exclude
                         a commission

   - Promote products                                                  - Bargain price
     easily                                                            - Target:
                                                                         Late teens ~ mid thirties
                                                                         single women




                                                 6
Why Social Commerce?
 Business perspective
   – Social media marketing monetization
        Helps marketers monetize and measure campaigns
   – e-Commerce sales optimization
        Improve conversion rates and increase average order value for online retailers
   – Business model innovation
        Creating new revenue streams by curating and extracting value from social
         media content




                                          7
Why Social Commerce?
 User perspective
   – Trust
        Because social media content increases ‘source credibility’ of sales and
         marketing messages, making them more believable, persuasive and
         trustworthy to the user
   – Utility
        By putting the social commerce tools at the disposition of customers, brand,
         businesses and retailers can enhance the online customer experience
   – Fun
        In contrast early e-commerce was a solitary experience, people interacting with
         software
        Social commerce helps make commerce social again
   – Social commerce can enhance the customer journey, from initial ‘need
     recognition’ and ‘product discovery’, through ‘product selection’ and
     ‘product referral’


                                           8
Types
 1. Social Link




                   9
Types
 2. Social Web




                  10
Types
 3. Group purchase




                      11
Types
 4. Coupled with offline




                            12
Types
 4. Coupled with offline




                            13
Six Dimensions of Social Commerce
 Dimension 1: Social Shopping
   – Allows people to share the act of online shopping together (synchronous
     shopping)
   – Adds emotion into the e-commerce mix
   – Enables real-time recommendations
   – Includes …
          Group buying
          Co-browsing
          Group gifting
          Ask-your-network
          Social network storefronts
          Social shopping portals




                                        14
Six Dimensions of Social Commerce
 Dimension 2: Rating & Reviews
   – Provide independent third-party evaluation of a product or service review,
     with an opportunity for viewers to contribute and discuss
   – What’s new?
        Review syndication, contrast review (pos/neg), tagged reviews, vidio revies,
         geo-tagged mobile reviews, …
   – Includes…
          Customer ratings & reviews
          Expert ratings & reviews
          Sponsored reviews
          Customer testimonials




                                          15
Six Dimensions of Social Commerce
 Dimension 3: Recommendations & Referrals
   – Promotes personal recommendations and referrals within online social
     circles, often rewarding referrers for their efforts
   – Sometimes integrated in social shopping portals
   – Can use syndication tool via Twitter and Facebook to share
     recommendations with friends, fans, and followers
   – Includes…
        Share with your network
        Referral programs
        Social recommendations




                                     16
Six Dimensions of Social Commerce
 Dimension 4: Forums & Communities
   – Connect people with each other and to a business in a moderated and
     curated environment
   – Includes…
          User forums
          User galleries
          Idea boards
          Q&A forums
          Brand communities




                                     17
Six Dimensions of Social Commerce
 Dimensions 5: SMO (Social Media Optimization)
   – Promoting and publicizing websites and website content through social
     media
   – Includes…
          News feeds
          Media sharing
          Social media events
          Link building




                                     18
Six Dimensions of Social Commerce
 Dimension 6: Social Ads & Apps
   – Branded content in social media in the form of paid advertisements or
     social applications
   – Social apps outperform social ads because they also use reciprocity




                                      19
Future Trend
 Social CRM
 Mobile Social Commerce
 Curated Social Marketplace




                               20
References
 Wikipedia - Social Commerce
 Social Commerce: Monetizing Social Media,
  Paul Marsden, Syzygy Group, 2010

 The Era of Social Commerce,
  http://aboutsocialmedia.blogspot.com/2010/08/era-of-social-commerce.html

 소셜 커머스의 4가지 유형,
  http://www.bloter.net/archives/31355

 The 6 Dimensions of Social Commerce: Rated and Reviewed,
  http://socialcommercetoday.com/the-6-dimensions-of-social-commerce-rated-and-reviewed/




                                             21
     Social Commerce Sites




22
Groupon
Groupon?
 A social commerce site launched in 2008
 Known for the first social commerce
 Group + Coupon = Groupon




                                24
Introduction to Groupon




                    25
Introduction to Groupon (cont.)




                     26
Explosive growth of Groupon
 Serves in about 40 countries and has amassed 35 million
  registered users




                                27
Acquisition & Re-brand
 Acquired several international operations similar to Groupon
 Re-branded under the Groupon name after acquisition




                                 28
History

               I’m Andrew
                 Mason.




          29
History (cont.)




                  30
History (cont.)




                  31
Feature list
 Featured Deal (deal of the day)
 MegaGift




                                    32
Business model
                Brokerage fees (Groupon & retailer would split)

                                   Social
                                 Shopping


            Limited time,                         Providing buyer
 The minimum personnel,                           characteristics,
  More than half discount                         Statistical information




                                               Region-based
                    Customer
                                                    Seller
    Cheap prices                Social media                 Ad, PR effects
       Impulsive,           Word of mouth effects
Fun consumption

                                      33
Business Model
Application based on Groupon
 “Chocolate” is an example of applicatioin
 SK Telecom + Groupon = Chocolate
 Similar to Groupon, but for SKT members only




                               34
Success Factors
Region-based commerce platform
 Deals with offline goods/services based on local region
 Brings marketing effects
 Commercializes offline services into online services

   cf) yelp.com




                                 35
Success Factors
Thoroughly simple & intuitive interface
 Checking Feature Deal and clicking for buying is all
 Reduces the load about decision of mass goods




                                  36
Success Factors
Social media marketing
 Win-Win strategy by sharing Feature Deal (buzz marketing)
 Incentive System




                                37
References
1.   Wikipedia “Groupon”
2.   네이버 백과사전 “소셜 커머스”
3.   Groupon (Korea)
4.   그루폰, e비즈북스, 근간예정




                      38
LivingSocial
LivingSocial




               40
History




          41
Feature List
   Today’s Deals
   Instant Deals
   Past Deals
   More Cities
   Escapes
   Families




                    42
Business Model
 LivingSocial offers a new deal each day
   – LivingSocial sends email to its members who subscribe via email
   – Members have a chance to save 50-90%




                                      43
Business Model
 The original purchasing member obtains a free offer if he recom
  mends three persons to purchase




                                44
Business Model
 LivingSocial provides a surge of new customers for menchants
   – LivingSocial takes a cut of the deal revenue
 LivingSocial helps the local consumers figure out where to spend
  their money




                                       45
Acquisition
 InfoEther
   – In March 2011,LivingSocial acquired InfoEther
   – InfoEther is one of the leading technology
 Let’s Bonus
   – In January 2011,LivingSocial acquired a majority stake
   – Let’s Bonus is a social shopping site launched in Spain, Italy, Portugal,
     Argentina and Mexico




                                        46
Acquisition(cont.)
 Jump On it
   – In November 2010,LivingSocial bought $5 million controlling stake in Austr
     alian social shopping site Jump On It
 Urban Escapes
   – In October 2010, LivingSocial announced acquisition of social adventure co
     mpany Urban Escapes
   – Urban Escapes led to the launch of LivingSocial Escape and LivingSocial
     Adventures




                                      47
Comparisons-Similarities
LivingSocial VS Groupon

 Similarities between LivingSocial and Groupon
   – Both Living Social and Groupon are coupon based company.
   – Both Living Social and Groupon are busy expanding to new cities.
   – Both Living Social and Groupon making good use of social features.




                                      48
Comparisons-Similarities(cont.)
LivingSocial VS Groupon

 Similarities between LivingSocial and Groupon
   – Both Living Social and Groupon making good use of social features.
   – Both Living Social and Groupon’s websites use Facebook Connect to help p
     eople find deals according to the geography, then share these deals on Fac
     ebook or other social media.




                                      49
Comparisons-Differences
LivingSocial VS Groupon

 Differences between LivingSocial and Groupon
   – Groupon has 40 million subscriber in 35 countries and 335 cities VS Living S
     ocial has 26 million members in 5 countries and 89 cities.
   – Groupon is the pioneer VS Living is a clone
   – Groupon is earning 3 times more than Living Social is making




                                       50
Who will be the winner?

                           LivingSocial
                          will be No.1 b
                               y 2012




                     51
References
 References
   – Wikipedia-LivingSocial




                              52
Etsy
Introduction
 WAL*MART economy




           What about producers and consumers?
Introduction



                     Distributed
                     M    a  s   s
                     Customization
                     M o d e l

      Unique product, Social communication, Contents driven commerce
           >> Communication between producers and consumers
Introduction
 Etsy
   – E-commerce website launched on June 18, 2005




     Robert Kalin     Chris Maguire   Haim Schoppik   Jared Tarbell
Introduction




               “I wanted a nonsense word because I
               wanted to build the brand from scratch.
               I was watching Fellini’s 8 ½ and writing
               down what I was hearing.”

                       In Italian, “oh, yes”
                         In Latin, “and if”
Introduction
 Etsy
   – Focused on handmade or vintage items as well as art and craft supplies
          Including art, photography, clothing jewelry, edibles, bath & beauty products,
           quilts, knick-knacks and toys
          Rule for vintage items: must be 20 years or older


   – P2P market place
          No distributors between users
          Anyone can be a seller or a buyer




               buyers                                                      sellers
Introduction
 Etsy
   – In 2009,
          85M users (buyers)
          8M artists and designers (sellers)
          Monthly turnover of 50 million dollars (May 2009)




                                                               Unique visitors
                                                               From compete.com




   – No budget for advertisement
          Only word-of-mouth marketing
Introduction
 Etsy
Introduction
 Etsy
   – Everyone can join this!
Introduction
 Records
   – Attract $3,100-million investment
        Investors
            –   Catalina Fake (an individual investor) of Yahoo!
            –   Sean Meenan
            –   Spencer and Judson Ain
            –   Union Squre Ventures
            –   Founders of Flickr and Delicious
            –   …
   – $0.2-billion of exchange volume
   – 100% growth of every figure (visitors, exchange volume, benefit, …) from
     2008 to 2009
Introduction
 Etsy Labs
   – A permanent office of Etsy in Dumbo, Brooklyn
   – Site’s customer support, marketing/PR, business & communications teams
     operate out of this office
   – Has a community workspace that provides equipment and donated
     materials
Introduction
 Etsy Labs
Introduction
 Revenue
Features
   Buy
   Sell
   Community
   Blog
Similar Sites
Foodzie
Similar Sites
1forme
Conclusion
 Market for producer, consumer, and environment
 Accommodate individual taste
 “Communication” is the future of the distribution
References
 Wikipedia: Etsy
  http://en.wikipedia.org/wiki/Etsy

 www.etsy.com
 Etsy "월마트 이코노미"의 틈새를 노리는 P2P 쇼핑몰
  http://www.x2soft.co.kr/263

 Handmade 2.0, New York Times Magazine (New York Times)
  http://www.nytimes.com/2007/12/16/magazine/16Crafts-
  t.html?_r=2&oref=slogin&ref=magazine&pagewanted=all

 플라이팬, 어떤 비즈니스를 준비하고 있어요?
  http://blog.flyfan.net/?p=395

 Statistics: Alexa, Compete
Ticket Monster
72
Ticketmonster
 Ticketmonster has everything at 50 percent off!




                                73
Features
   Today timon
   Timon Store
   Timon Tour
   Board




                  74
Success Factor


   Products       Extend region    Brand
      &                 &            &
  Management          Scale       Naming




                                   Design
  The number        Customer
                                     &
  of customers     confidence
                                  Contents




                 With Dailypick

                        75
References
 티켓몬스터 www.ticketmonster.com
 젊음과 패기로 뭉친 소셜 커머스 2.0 주자 신현성 -
  http://blog.naver.com/websmedia/40126748137




                            76
Coupang
Introduction
 Coupang
  – Group purchase website




                             78
Introduction
 Coupang
  – Group purchase website




                고재우, 윤선주, 김범석 (From left to right)




                                79
Introduction
 Color Your Days
   – Users can experience varied life everyday




                                      80
Introduction
 Rankey.com




               81
Features
   Daily 쿠팡
   쿠팡 Mall
   Play 쿠팡
   전체보기
   지난 쿠팡 보기




               82
Conclusion
 Commercializes offline market into online

 Win-win strategy by buzz marketing




                                83
References
 Rankey.com
  http://www.rankey.com/rank/rank_site_cate.php?cat1_id=11&cat2_id=2691&cat3_id=2390

 쿠팡 김범석 대표
  http://blog.daum.net/lgjuwon/978

 하버드 3총사 벤처 창업했다
  http://www.mt.co.kr/view/mtview.php?type=1&no=2010072422535502547

 김범석 대표, 다채로운 삶에 도움 줄 것
  http://kdw0796.tistory.com/entry/CEO%EC%9D%B8%ED%84%B0%EB%B7%B0%EC%86%8C%EC%85
  %9C-%EC%BB%A4%EB%A8%B8%EC%8A%A4-%EC%BF%A0%ED%8C%A1-
  %EA%B9%80%EB%B2%94%EC%84%9D-%EB%8C%80%ED%91%9C-
  %EB%8B%A4%EC%B1%84%EB%A1%9C%EC%9A%B4-%EC%82%B6%EC%97%90-
  %EB%8F%84%EC%9B%80-%EC%A4%84-%EA%B2%83




                                              84
One a day
What is one a day
 Launched Jan 2007

 Daily Deals

 Sell products at the lowest price

 Construct reliable selling system




                             86
One product per one day




                    87
One product per one day




                    88
Features
   one product per one day
   statistics
   review
   blog widget
   product history
   product offer
   product alarm
   event




                              89
There are many one a day market




                   90
One a day Store Solution Service




                     91
SWOT

       Strength   simple                              Weakness
       Lower price, higher quality        Lack of categorization

         reliable delivery system          Daily product supply

            Feedback system                Monotonous product

                           One a day
       Opportunity                                        Threat
        Growing social commerce
                 market                   Too many social market

       More investment on one a              market disbelief
                   day




                                     92
Successful Factor
 7000 Offers per year

 100,000 customers

 Top 10 buyer: 10,000,000 won/year

 Gain customers trust

 Staff: 25 Members (9 Managing director)




                           93
Successful Factor
 CEO Manpower

 Market Frontier




                    94
References
 References
   – Wikipedia
   – http://blog.yipit.com/
   – http://msn.ebn.co.kr/news/




                                  95

								
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