Slide 1

Social Commerce Social Network Study 2011 SNU IDB

Slide 2

Outline Social Commerce Social Commerce Sites Groupon LivingSocial Etsy Ticket Monster Coupang One a day 2

Slide 3

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 e-CommerceSocial Media Social Commerce 3

Slide 4

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

Slide 5

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 buys storefront in Facebook 5

Slide 6

Concept 6 Local Service Provider Social Commerce Service Provider Customer Register servicesbuy services Pay the price Give back the profits exclude a commission Use the services - Bargain price - Target: Late teens ~ mid thirties single women - Promote products easily

Slide 7

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

Slide 8

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

Slide 9

Types 1. Social Link 9

Slide 10

Types 2. Social Web 10

Slide 11

Types 3. Group purchase 11

Slide 12

Types 4. Coupled with offline 12

Slide 13

Types 4. Coupled with offline 13

Slide 14

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

Slide 15

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 Whats 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

Slide 16

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

Slide 17

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

Slide 18

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

Slide 19

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

Slide 20

Future Trend Social CRM Mobile Social Commerce Curated Social Marketplace 20

Slide 21

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 4 , 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

Slide 22

Social Commerce Sites 22

Slide 23

Groupon

Slide 24

A social commerce site launched in 2008 Known for the first social commerce Group + Coupon = Groupon Groupon? 24

Slide 25

Introduction to Groupon 25

Slide 26

Introduction to Groupon (cont.) 26

Slide 27

Serves in about 40 countries and has amassed 35 million registered users Explosive growth of Groupon 27

Slide 28

Acquired several international operations similar to Groupon Re-branded under the Groupon name after acquisition Acquisition & Re-brand 28

Slide 29

History 29 Im Andrew Mason.

Slide 30

History (cont.) 30

Slide 31

History (cont.) 31

Slide 32

Feature list 32 Featured Deal (deal of the day) MegaGift

Slide 33

Business model 33 Social Shopping Region- based Seller Customer Limited time, The minimum personnel, More than half discount Providing buyer characteristics, Statistical information Social media Word of mouth effects Brokerage fees (Groupon & retailer would split) Cheap prices Impulsive, Fun consumption Ad, PR effects

Slide 34

Business Model Application based on Groupon 34 Chocolate is an example of applicatioin SK Telecom + Groupon = Chocolate Similar to Groupon, but for SKT members only

Slide 35

Success Factors Region-based commerce platform 35 Deals with offline goods/services based on local region Brings marketing effects Commercializes offline services into online services cf) yelp.com

Slide 36

Success Factors Thoroughly simple & intuitive interface 36 Checking Feature Deal and clicking for buying is all Reduces the load about decision of mass goods

Slide 37

Success Factors Social media marketing 37 Win-Win strategy by sharing Feature Deal (buzz marketing) Incentive System

Slide 38

References 38 1.Wikipedia Groupon 2. 3.Groupon (Korea) 4. , e ,

Slide 39

LivingSocial

Slide 40

40

Slide 41

History 41

Slide 42

Feature List Todays Deals Instant Deals Past Deals More Cities Escapes Families 42

Slide 43

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

Slide 44

Business Model The original purchasing member obtains a free offer if he recom mends three persons to purchase 44

Slide 45

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

Slide 46

Acquisition InfoEther In March 2011,LivingSocial acquired InfoEther InfoEther is one of the leading technology Lets Bonus In January 2011,LivingSocial acquired a majority stake Lets Bonus is a social shopping site launched in Spain, Italy, Portugal, Argentina and Mexico 46

Slide 47

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

Slide 48

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

Slide 49

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 Groupons 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

Slide 50

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

Slide 51

Who will be the winner? 51 LivingSocial will be No.1 b y 2012

Slide 52

References References Wikipedia-LivingSocial 52

Slide 53

Etsy

Slide 54

Introduction WAL*MART economy What about producers and consumers?

Slide 55

Introduction Distributed Mass Customization Model Unique product, Social communication, Contents driven commerce >> Communication between producers and consumers

Slide 56

Introduction Etsy E-commerce website launched on June 18, 2005 Robert KalinChris MaguireHaim SchoppikJared Tarbell

Slide 57

Introduction I wanted a nonsense word because I wanted to build the brand from scratch. I was watching Fellinis 8 and writing down what I was hearing. In Italian, oh, yes In Latin, and if

Slide 58

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 buyerssellers

Slide 59

Introduction Etsy In 2009, 85M users (buyers) 8M artists and designers (sellers) Monthly turnover of 50 million dollars (May 2009) No budget for advertisement Only word-of-mouth marketing Unique visitors From compete.com

Slide 60

Introduction Etsy

Slide 61

Introduction Etsy Everyone can join this!

Slide 62

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

Slide 63

Introduction Etsy Labs A permanent office of Etsy in Dumbo, Brooklyn Sites customer support, marketing/PR, business & communications teams operate out of this office Has a community workspace that provides equipment and donated materials

Slide 64

Introduction Etsy Labs

Slide 65

Introduction Revenue

Slide 66

Features Buy Sell Community Blog

Slide 67

Similar Sites Foodzie

Slide 68

Similar Sites 1forme

Slide 69

Conclusion Market for producer, consumer, and environment Accommodate individual taste Communication is the future of the distribution

Slide 70