RomCommerce: The Future of Social Commerce & Its Impact
E-commerce is nothing new in the age of rapid technological advancements. You can virtually buy anything you want off the Internet with a few taps of a screen. However, how companies and brands advertise and sell their products is evolving into something entirely new – social commerce.
Although the objective of shoppable content has not fully taken over in the U.S., some companies have successfully attempted this new way of selling goods.
Companies like Walmart have taken a new spin on social commerce by creating their own versions, such as RomCommerce, where the shopping experience is mixed in with the movie-viewing experience. With constant new ways to shop, social commerce will soon transform not only the trade landscape but also the transportation one.
What is Social Commerce?
Like e-commerce, social commerce is done over the Internet; however, the facilitation of buying and selling goods takes a different approach. In social commerce, social media platforms such as Instagram and TikTok are used to promote the sale of products and are integrated right into what people would normally consume on the apps.
A McKinsey study predicts that social commerce will reach $80 billion by 2025, 5% of all e-commerce. This rise in social commerce can be attributed to a change in consumer behavior.
More and more people are turning to social media to discover and purchase products. the appeal is due to data-driven personalization and the flocks of influencers on social media. Social media platforms have access to large amounts of user data, which helps to personalize a user’s algorithm into things they want to see or, in this case, purchase.
Influencers can drive social commerce by engaging with their audience and authentically showcasing products – even if they are part of a brand deal. Consumers can easily access these products through TikTok shop or influencers’ Amazon storefronts, which are linked right on their pages.
Walmart’s RomCommerce
In December 2023, Walmart launched a new campaign called “RomCommerce.” RomCommerce combines the experience of watching a romantic comedy with shopping. The 23-part series “Add to Heart” follows Jessica, who visits her hometown for the holidays. Once there, she bumps into her old friend Javi, and they rekindle their romance through holiday activities.
While viewers watch the series, they can buy over 330 items sourced from Walmart, all of which are featured in the romantic comedy. These products range from food to decor and clothes. “Add to Heart” is available on TikTok, Youtube, Roku, and Walmart’s social media pages.
During the rollout of the RomCommerce series, Walmart measured consumer engagement by analyzing whether consumers added items to their carts, bought the item, and, if not, returned to the item. “Add to Heart” proved to be successful, as the company saw increased activity and traffic on its website.
Walmart is looking for more opportunities to explore the future of commerce. The retail giant has recently partnered with NBC to create a shopping experience that is featured on season 8 of the reality show, “Below Deck: Mediterranean” and available on the streaming platform Peacock.
How Are Logistics Impacted?
Social commerce and RomCommerce are the future of consumerism. With quicker and more efficient ways of buying, transportation companies will need to adjust their operations accordingly. This means that social commerce will inevitably impact transportation and logistic companies.
So, what are these effects, and how can these companies adjust?
With social commerce, logistic companies will have to handle a higher order and shipping volume while delivering to various locations. Transportation companies will need to optimize their delivery processes and routing. However, this can lead to a higher demand for their services, thus leading to increased revenue opportunities.
The new way of commerce can also involve small businesses that utilize social media to drive their sales. This can increase the demand for last-mile delivery, which is considered the last step of delivery when the package is moved from a transportation hub to its final destination.
Transportation companies could potentially partner with social commerce platforms to provide specialized shipping services. As more companies vie for market dominance, this could lead to competitive shipping rates and efficient delivery options.
The Future of Social Commerce
Social commerce is still considered up-and-coming in the United States but has seen incredible growth in countries such as China, India and Southeast Asia. We are just at the beginning stages of social commerce, and it will just continue to expand over time.
Walmart isn’t the only company that has done similar projects; Home Depot and other companies have utilized TikTok to promote their products. RomCommerce is just the tip of the iceberg.
According to a 2023 report by BENlabs, three-quarters of consumers have searched for a product on at least one platform after seeing it in a film or on TV. Will companies partner with streaming services to release other genres of movies that offer the same experience as RomCommerce? Only time will tell, but the possibilities are endless.
