Social Commerce – Could it be a lot more than just a buzzword?

The term ‘Social Commerce’ has been around for a while; and of late it has been a topic of intrigue for me – especially for its use in my current effort to build a marketplace for producers and consumers of eco-friendly products.

To facilitate commerce of any products or services, buyers and sellers need to come together.   For a ‘win-win’ transaction to occur, buyers should recognize the value of what they intend to purchase and sellers need to feel that they got a fair value in return.

Well, it does not happen that easily in most cases, certainly not in the retail area that I am promoting in India.  Often, my consumers don’t even know what they want; even if they do, don’t know how to get or utilize them; and most suppliers that produce great products do not know how to market those.

It will greatly help, if there exists a marketplace where,

1. All consumers know each other; and they exchange information freely
2. Consumers can easily find experts to help them:
   • recognize their actual needs and point them at products / services that will fill those needs
   • effectively utilize and benefit from what they purchase
3. Producers know how their products could add value for any given customer; and they can articulate it with passion
4. Consumers and producers can find each other easily and interact freely

This is where I think we could unleash social commerce – both online and offline.

We started experimenting this concept a couple of years ago in an offline mode.  We setup bazaars (similar to the farmers’ market concept in California or the traditional village markets from 40-50 years ago in India) where we encouraged local suppliers of sustainable products in food, personal care, handicrafts, handlooms, etc., to come and sell their products directly to the customers.  We created a family friendly environment where customers could have a great weekend experience with their spouses and children.  They also ran into many of their friends and more importantly made new connections.

What came out of this approach was something more beautiful than we ever imagined.  Collectively the customers became more informed and understood the value of the products directly from their producers.  They purchased more without bargaining, which made the sellers much more satisfied.

The experience opened up a Pandora’s box filled with unlimited number of possibilities.  Can we improve our bazaars as a vibrant marketing platform?  Can we take this experience online and connect a much broader set of consumers and producers?

I believe many elements of social commerce can facilitate a rich and engaging experience for the Indian consumers and producers, especially online:

• Engage both the consumers and producers – Provide an interactive platform where everyone can create and share content
• Build a community – Enable open interactions between the participants; facilitate sustainable relationships between people.  The community has to exist both online and offline
• Provide easy and affordable access to products and services – It is important for people to find whatever they discuss at the same place.  Also, facilitate discussions on the products that are already available to create awareness
• Empower consumers and producers – Let people discuss and judge on product quality, value, cost and price
• Build an image of Uniqueness – Let the platform be exclusive for those people who really care about their needs, on the lookout for products that are unique and hard to find

I am set to experiment more (both offline and online), beginning with these hypotheses as baseline.  I expect to discover more ideas along the way, but am also looking for fresh ideas and perspectives.

Do let me know what you think.

Narayan K Murthy | narayan@goodseeds.in | +91 970.449.6664 | http://www.goodseeds.in

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