History will show us that 2020 was a year in which consumer behavior, commerce, and trade changed. Businesses of all sizes faced challenges at a scale not seen prior the World War 2. What does 2021 have in store?
If 2020 is a yardstick, 2021 will continue to speed up e-commerce adoption worldwide. If you run a business or manage a brand, the next six months in develop markets or 18 months in developing markets are critical.
I have, over the past decade, tried to understand what social commerce is. A few years ago, we had the emergence and disappearance of distributed and conversational commerce. I am beginning to see the use of social commerce again and think it’s worth discussing.
What is social commerce? It depends on who you ask, their location, and what they perceive what social is. The other topic that gets lost in the discussion is trust and discovery. To be clear, I believe that we have no idea what social commerce is in the West.
According to the International Monetary Fund (IMF), China’s economy is the only country with a positive GDP in 2020. Economic growth in 2020 is rare as economies are under pressure due to job losses, market contraction, and secondary effects from COVID-19. If you work in commerce, we assume that disposable income is available in all markets we operate in.
The coming Wednesday is one of my favorite macroeconomic barometers, the 11.11 Global Shopping Festival. It started as Singles Day, and every year since 2008, it showcases the difference between Chinese e-commerce and the world.
Alibaba has it, JD.com has it, and Amazon has one. Shopping festivals are a trend that has accelerated as commerce seeks to energize global economies. A shopping festival offers consumers a dash of retail therapy while brands can grow sales and engagement.
A few weeks ago, Coresight Research, Shopkick, and Fashwire announced the 10.10 Shopping Festival. A well-known commerce research business, an offline to an online app, and a double-sided fashion marketplace offer US consumers, retailers, and brands access to customers.
“We’re thrilled to thank our loyal users by offering big kicks throughout Shopper Appreciation Weekend, and to partner with Coresight Research to make the 10.10 Shopping Festival a reality for shoppers across the country,” said Dave Fisch, general manager of Shopkick. “By rewarding consumers throughout the entire online and in-store shopping experience, we hope to make it that much easier to check off all of their holiday needs, while also offering a chance to give back to a worthy cause.”
I have spent a large amount of time in 2020, researching and writing about logistics. In a recent project, I have had a front-row seat to see its strain on brands. The stepchild of e-commerce is not flashy and visible by consumers but can make or break customer perception. The final mile has an enormous impact on consumers’ experience, and in Q4 2020, it will become more critical.
Logistics is somewhat opaque currently, and in most cases, it can lead to many breaking points. Amazon has changed customer perceptions based on speed. On-demand startups such as Darkstore, FLEXE, and Flowspace also add complexity, which the customer does not see.
The sector is a low margin, capital intensive part of commerce that is due for innovation. It’s a topic that is not cool, nor does it get the attention it deserves.
