In the post-epidemic era, what is the booster for the rapid development of cross-border e-commerce again? Short video platforms or products represented by TikTok, Instagram Reels, YouTube Shorts, etc. have become an option that cannot be ignored. As we all know, short videos are greatly changing the production and dissemination forms of global social media information, thereby transforming people's consumption habits and consumption scenarios. Based on this background, Dunhuang.com Group and the School of Economics and Management of the University of Hong Kong released the "2023 Cross-border Overseas Social E-Commerce White Paper" (hereinafter referred to as the White Paper), focusing on the development trend of social e-commerce and celebrity marketing in the global and key national markets. Provide solutions to the common concerns of the e-commerce industry.
Global social e-commerce industry trends
As one of the forms of e-commerce, the rapid development of social e-commerce is obvious to all. Professional institutions predict that from 2022 to 2026, the average annual growth rate of the global social e-commerce market will exceed 30%, and the CAGR will be 30.8%, which will become the main engine for the growth of the global e-commerce market. The social e-commerce market in the United States has grown significantly, with a CAGR of 25.1%. By 2026, the growth rate of social commerce in the United States is expected to be twice that of China.
In order to cope with the continuous growth, decentralization and fragmentation of the global social e-commerce market, the white paper introduces DHgate Group's response plan - social e-commerce platform MyyShop. Relying on the supply chain advantages of DHgate, a centralized cross-border e-commerce platform under the DHgate Group, as well as multi-scenario big data and AI technical support, MyyShop empowers global content creators and helps them use their private domain The traffic is successfully realized.
Booming influencer economy
Among the global population, about 5.18 billion people are Internet users; about 4.8 billion people, or 58% of the global population, are social media users. They spend an average of 2.5 hours a day chatting, entertaining, and reading on social apps, and use social media networks to search for product information . The penetration rate of social media in North America has reached 73.9%, and among the young Generation Z population, this figure has reached 90%.
More than 60% of global consumers said that they trust the recommendations of KOLs more than the brand's own advertisements. In the United States, Gen Z’s trust in KOL recommendations is also much higher than that of other generations of Americans. In the American celebrity marketing market, the proportion of brand spending on small and micro Internet celebrities is increasing year by year, and the growth rate is significant. In 2022, small and micro Internet celebrities will account for nearly 30% of the US celebrity marketing market, and it is expected that in 2024, their market share will exceed 40%.
The TOP3 social e-commerce social media platforms in the United States are Facebook, Instagram and TikTok. The rapid development of TikTok, which focuses on short video content, also means the rise of small and micro Internet celebrities covering many subdivided fields, with different numbers of fans and fan communities, and different content styles. Sufficient content creators provide solutions for the advertising needs of different brand owners and new e-commerce sales channels.
Challenges and Responses of Social E-Commerce
Uncertainties in the global economy and consumers' distrust of large-scale transactions on social media platforms have slowed down the growth rate of social e-commerce users. In order to win the trust and loyalty of Generation Z, brands need to focus on "authenticity", "community" and "participation", and make efforts in these three dimensions to create a long-lasting emotional connection between the brand and Generation Z users. American influencer marketing still focuses on brand marketing, and the model of live streaming is still in its infancy. According to industry insiders, the commercialization rate of TikTok e-commerce in the United States is currently low, and there is huge room for commercialization.
Although live delivery in China has become a very successful and common business model, for cross-border e-commerce companies and individuals going overseas, domestic experience may not be seamlessly transplanted overseas. In order to gain an in-depth understanding of the behavioral characteristics of overseas social e-commerce consumers and analyze the key factors for the success of overseas celebrity live streaming, DHgate Group and the School of Economics and Management of the University of Hong Kong conducted an analysis and research on the data of TikTok celebrity live streaming, and based on Based on the data analysis results, the "Standard Operating Procedures for TikTok Live E-Commerce in the United States" was published as an appendix of the white paper.
The "2023 Cross-Border Global Social E-Commerce White Paper" was led by Tian Mei, Executive Assistant to the Chairman of DHgate Group, and Associate Professor Zhang Wei, Deputy Director of the Institute of Digital Economy and Innovation of the School of Economics and Management of the University of Hong Kong. Professional guidance and assistance from Shen Haipeng, vice dean of senior management education and professor of Pan Shenchang Data Science and Innovation Fund. Thanks to both teams for their efforts and contributions to this white paper.
