Social Commerce

Social commerce works by attaching product tags to social media posts and stories, allowing users to view product details and complete payment within the app. On Instagram, the "Shopping" feature lets you tag products in feed posts and Reels videos, and a single tap takes you to the product page. TikTok operates "TikTok Shop," offering functionality to purchase products in real time during live streams.

In the Japanese market, LINE Gift has established a unique position. The ability to purchase and send gifts directly from a LINE chat screen is a prime example of leveraging the affinity between gifting demand and social interaction. In China, WeChat (Weixin) mini-programs and Douyin live commerce have formed a massive market, with social commerce sales reportedly exceeding 15% of total EC. This trend is accelerating in Japan as well, with social media-driven purchasing behavior becoming established particularly among Gen Z.

When using social commerce as a consumer, it is important to develop the habit of checking whether influencer posts are advertisements (PR). Japan's 2023 stealth marketing regulations require advertising posts to display labels such as "PR" or "Ad," but inadequate labeling still exists. Product evaluations should be assessed comprehensively by referencing not only post comments but also EC site reviews and third-party comparison sites.

From a business perspective, the greatest strength of social commerce is its ability to promote "discovery-based purchasing." Traditional EC required consumers to actively search for products, but on social media, users naturally encounter products while scrolling through their feeds. This serendipitous discovery tends to lead to impulse purchases, and it pairs particularly well with visually appealing product categories such as apparel, cosmetics, and food. Encouraging review posts through UGC (user-generated content) is also effective for improving credibility and purchase rates.