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The Role of Influencers in Social Commerce Gen Z and Millennial users, the target audience for social commerce, have limited attention spans and seek instant gratification from short content. This is where micro and nano content creators and their short content have made a huge impact. There is a latent desire to create tight and robust communities, especially in smaller suburban centres. There is also a greater emphasis on original content, with users preferring to discover it themselves rather than being fed curated content. This mutual trust between creators and their communities is a huge factor that drives social commerce. Buyers are looking for authentic and relevant content from creators they can identify with and trust for their expertise.
What lies in the future?
While social media and social commerce are growing at a rapid pace, supported by a favorable business environment, for sustainable growth in the future, companies must have good business metrics. If user acquisition costs remain high, growth will remain skewed. Here, the key differentiators will be sound unit economics, high quality standards, innovative brands and product linkages, and tight cost control. As Woovly co-founder Neha Suyal puts it into perspective, “Today’s millennial user demands a high degree of personalization and is heavily influenced by peers and social media. It’s easy to go overboard trying to get such customers. However, burning cash at a high rate is not sustainable. 50% of our users are acquired organically and we want to keep it that way for accelerated but sustainable growth.”