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The Future of Social Commerce and Content Creation Via AI

Social commerce may be a newish idea for U.S. retail brands, but it is a trendy marketing tool in China. How popular? Sales in China from social commerce platform purchases reached $363 billion in 2021. Compare that with the U.S., where social commerce sales were $36.6 billion in the same year. The trend is growing,…

By Melissa Gonzalez · March 8, 2023, 9:50 PM UTCAiContent CreationDropRetail
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Key takeaways

01

Social commerce may be a newish idea for U.S.

02

retail brands, but it is a trendy marketing tool in China.

03

Sales in China from social commerce platform purchases reached $363 billion in 2021.

Social commerce may be a newish idea for U.S. retail brands, but it is a trendy marketing tool in China. How popular? Sales in China from social commerce platform purchases reached $363 billion in 2021. Compare that with the U.S., where social commerce sales were $36.6 billion in the same year. The trend is growing, however, and by 2025 those sales look to reach $79.6 billion, more than double the amount from 2021.

What’s driving the sales growth to that near $80 billion figure, and what technology will fuel it beyond the next two years? The future of social commerce and content creation hinges on a powerful two-letter abbreviation called AI.

Artificial Intelligence, or its two-letter acronym, is on the tip of every industry’s tongue, especially after the recent buzz surrounding ChatGPT. And with a Shure & Futuresource study indicating 40% of people identify themselves as content creators; if retail brands aren’t finding ways to utilize social commerce and content creation, they are missing out on a significant sales opportunity.

But how to do it successfully? What works in China may not work here in the U.S. Recent news from Meta’s Instagram platform that they were sunsetting their live shopping feature in mid-March indicates major brands are struggling with capitalizing on social commerce.

One company determined to change social commerce’s fortunes is Drop. Their mission is to build leading social commerce platforms for brands and retailers. Drop’s CEO, Benjamin Benichou, ‘dropped’ by this episode of Retail Refined to speak with host Melissa Gonzalez about what Drop’s up to and how it is bringing AI into the social commerce and content creation equation.

“If you’ve been in China or that part of the world, social commerce is way more advanced than what we have in the western world,” Benichou said. “We launched our company two years ago. We work with amazing brands and retailers to be at the forefront of social commerce. We help these brands sell more efficiently to their audience on Instagram, TikTok, and any other social media platform.”

On this episode, Gonzalez and Benichou discuss:

  • The opportunities in social commerce
  • Making social commerce and content creation on-brand, viable, and relevant
  • The debate on copyrights and legalities around AI and content creation

“It’s definitely a polarizing topic, and we had a workshop with our legal team as well to understand what’s going on,” Benichou said. “If you create content using AI, do you really own this content, and can you send it to your customers?”

Benjamin Benichou’s ten years of experience in digital media, brand strategy, communication, and customer experience helped him create global campaigns for world-leading brands, including Nike, Adidas, ASICS, Warner Bros., Orange Telecom, ’47, and Microsoft. He is the CEO and Co-Founder at Drop, a tech company on a mission to empower brands and creators globally, leveraging conversational commerce to help grow their business.

About the author

Melissa Gonzalez
Melissa GonzalezTop Retail Voice, Influencer, and Lead Retail Contributor

Industry-recognized influencer, leader, and storyteller in Retail. Lead Retail Industry Contributor at MarketScale. Principal at MG2 Design. Host of "Retail Refined" Podcast. As a global brand and retail experience disruptor, Melissa possess strong proficiency in consumer insights, experiential design, retail technology integration, and brand innovation. During her career, she have created powerful visual narratives through physical spaces, imprinting complex concepts and ideas to consumers in genuine, tactile, and persuasive manners. She have also served as a consumer engagement trendsetter, “pop-up” industry pioneer, and entrepreneur. Melissa founded and launched a consumer experiential design firm that achieved a successful exit, driving initial client wins, monetization, and exponential revenue growth. </br> </br> </br> "Melissa brings both her industry knowledge and an approachable and educational point of view to her interviewing skills. With an authentic style, she facilitates an engaging dialogue, one where listeners can walk away from with tangible insights and thought provokers!" </br> </br> <b>-Jeffrey Roseman, Vice Chairman of Retail at Newmark</b> </br> </br> </br> "What sets Melissa apart is her ability to cut through the noise and provide actionable insights. Whether you’re a store owner looking to revamp your space or a tech enthusiast curious about the next big thing in retail, you’ll find tangible ideas to build on. From seasoned designers to pioneering tech gurus - ensuring that listeners are always engaged with diverse and forward-thinking perspectives. Retail Refined doesn’t just skim the surface; it dives deep into topics that matter. If staying ahead of the retail curve is important to you, start here." </br> </br> <b>-Nate Frazier, Chief Operating Officer of GNC</b>

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