Social networks boost consumer purchases

Yu added social commerce can be applicable to all consumer sectors, but so far they are more widely leveraged in the beauty, luxury and fashion sector.

Global makeup brand Mac cooperated with internet celebrities in livestreaming and short-video platforms, and keeps on guiding consumers at offline stores into their online mini-program and WeChat account for long-term promotions.

Japanese clothing brand Uniqlo invested in targeted advertising on WeChat Moments and WeChat accounts before the Singles Day, a Chinese online shopping carnival, to increase the brand's exposure rate by 50 percent, the report showed.

Uniqlo consumers can receive the latest information about new products, discount and suggestions on clothes matching through the mini-program.

In 2019, daily active users of WeChat's mini-program surpassed 300 million, creating turnover of more than 800 billion yuan in total, data from Tencent showed.

About 85 percent of over 70 consumer goods companies interviewed by TMI and BCG agreed that social media plays the most important role in deciding whether consumers will or will not buy their products. Some 81 percent said they put the largest investment in social media among all online marketing channels.

The focus of brands is shifting from products to people－that is to bring more potential consumers into brand fans and actual users, according to the report.

Veronique Yang, managing director and partner of BCG, said social commerce reduces the cost of obtaining new customers as old consumers will help develop new ones in their inter-personal communities.

On average, more than 750 million users read Moments on WeChat every day. About 69 percent of interviewees once shared links of online shopping on social media, the report said.

She said it's important to offer high-quality content, such as more solid knowledge related to the commodity, feedback from previous users and entertaining material.

"For example, makeup brands can provide beauty courses; baby and maternal products can share parenting skills on social platforms."

She added that besides consumer goods companies, automobile, insurance and finance companies are also joining the trend.