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Welcome to the Social Media Shopping Mall

The future of e-commerce belongs to social apps like WeChat

Karan Girotra
Wed, 09/14/2016 - 15:58
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Social media and e-commerce have converged on China’s smartphones, thanks to one groundbreaking app. Since its release in 2011, WeChat, the free cross-platform messaging app, has grown into a veritable one-stop shop for lifestyle management. Without exiting the app, WeChat’s loyal users—whose numbers are rapidly approaching 1 billion—can book a doctor’s appointment, hail a taxi, and purchase products directly from brands. At least one in five users has linked WeChat to her debit or credit card, a potential cash bonanza of which Facebook co-founder Mark Zuckerberg can only dream.

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It’s only a matter of time before this functionality, or something like it, is the norm worldwide. Start preparing for a future in which social media will be not just a place to market, but also a major marketplace in itself. The recent paper, “The Use and Value of Social Network Information in Selective Selling,” describes how, unlike the current e-commerce model, social media selling will thrive not on transparency and accessibility but on strategic exclusivity.

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