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Social Commerce

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Hyewon Kim

on 4 December 2014

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Transcript of Social Commerce

Social Commerce
MIS Team 5
Jo Taehwan
Oh Youngho
Kim Yena
Yoon Sojung
Kim Yuna

Strategic Technology
used in Social Commerce
Strategic Technology
What is Social Commerce?
Stages of Development
Types of Social Commerce
Size of Social Commerce
Fundamental Technology used in Social Commerce
& Management Information System
Park Junhoo
Kim Hyewon
Madina Omarbayeba

1. What is Social Commerce?

2. Fundamental Technology
used in Social Commerce

3. Strategic Technology
used in Social Commerce

2.1 Group-buying Technology
2.2 Local-based Shopping
2.3 Extranet
3.1 Recommendation System
3.2 UX / UI
3.3 Marketing Strategy
Social Commerce 1.0
Explosive Growth, Low awareness

Groupon Established in 2008
- First Social Commerce Site in Korea
Social Commerce 2.0
Emergence of
ex) Couponmoa
ex) Daoneday launched in 2011
Social Commerce 3.0
Conglomerates entered the social commerce market
ex) CJ O'clock, Hyundai Hmall
Peer-to-peer sales platform
Community-based marketplaces or bazaars, where
individuals communicate and sell directly to other individuals.
Products and services offered at a reduced rate if enough buyers agree to make the purchase
(Beginning period ~ 2008)
(Metasite ~ 2010.10)
(Capital, 2010.11 ~)
Market Size Worldwide
Worldwide social commerce
Revenue from 2011-2015
(billion in US dollars)
Market Size in Korea
Turnover of 3 major social commerce companies
Market share of 3 major social commerce companies
Intense competition
with no front leader!
Ticketmonster 33%
Coupang 35%
Wemakeprice 28%
2. Local-based Services (LBS)
services that use location data to control features
LBS adopted in mobile Social Commerce
Fundamental Technology used in Social Commerce
1. Group-buying
purchase items together
In seller's point of view,
Start / end time
Deal dates
Minimum and maximum purchase requirements of each group buying deals.
Fundamental Technology used in Social Commerce
3. Extranet
a computer network that can make controlled access from outside of an intranet.

extranet is widely used for controlling their
as a
- so called
vendor page
In social commerce,
Local shop owner
Online goods seller
interlock with their
POS system in shop
manage their sales DB
Thanks to
, small partners who have trouble using IT alone, can handle the sales information
Owners can manage consumers
effectively using TmonPlus

- analyzing sales DB
- automatic control system

is the extranet
launched by Tmon, 2014. 9. 11.
TmonPlus offers extranet to
local shops that don’t use PC
Strategic Technology
1. Recommendation System
A system that recommends specific products for specific consumers, utilizing big data via pattern recognition technique

Cluster Model
Simple Search
Dividing customers into clusters

Use average purchases/ratings

Same author
Same genre
DVDs of movies
about the book

Match items instead of customers

Include comprehensive information

2. User Experience, Interface (UX/UI)
User experience(UX
a person’s perceptions and responses that result from the anticipated use of a product, system or service

User Interface(UI)
medium enabling interactions between humans and machines

As most of Korean social commerce companies have started as ventures, they swiftly response to new mobile waves.

Use simple colors which symbolizes brand identity
Simple and readable typography
Various layout types(grid, list, bar, accordion etc.)

UX/UI in Social Commerce Applications
Marketing Strategy
First Step
– Ads focused on “What social commerce is”

Main purpose of marketing strategy –
Acquiring customers

Second Step
– Ads focused on “Constructing Trust”

Third Step –
Ads focused on
“Maintaining good customer relationship”

The Ad used only one day 2011. 3.22
Daily Ad
2011, D

sold fake coupons
People lost trust about social commerce
Social Commerce Fraud
Major social commerce started using celebrity
to restore their trust with the customers
Marketing Strategy
Compelling product
Engaging users – taking part in the social discovery process
Creative care for customers as a young company

e-commerce that involves using social media
Group buying
Social network-driven sale
Peer recommendations
User-curated shopping
Participatory commerce
Social shopping
guaranteed discount rate.
Full transcript