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In Hongkong, one of the best channels to run conversational commerce would be WhatsApp, given that it’s the most used app in the market, AnyMind Group’s Deputy Head of E-Commerce Enablement for Japan, Mai Endo, told Hongkong Business.īased on data from Statista, WhatsApp receives 89,600 monthly downloads, making it the most downloaded free app in the social media category in Hongkong in April 2022.īut for brands present on various platforms, Thia cautioned that they do not “cannibalise” each channel, citing as an example the need for their products to be sold at the same price regardless of the channel. She noted that younger customers may be more present via social media, whilst slightly older or more loyal customers might be on the brand’s own marketplace or website.ĭata from Sprout Social showed that Gen Z shoppers, or those aged 18 to 40, are the most enthusiastic to make purchases via social media, particularly in Instagram, TikTok, and Whatsapp. When opening stores online or in a new channel, Thia said that it is important to have a proper channel strategy, taking into consideration the target audience per channel. Through messaging, customers can send their photos to the brands and have the retail associates on-screen recommend the type of products suitable for them.įor fashion brands, this can also be adopted as some customers could have ordered two sizes at a time, especially when they have no idea about their size, and just have one of them returned as soon as the customers get to fit the items. Specific sectors, such as beauty brands, can adopt conversational commerce by relying on messaging applications to sell their products and have live chat advisors to answer queries from customers.
That's the reason why we believe that social commerce is quite an equal playing field for all brands of different sizes and different verticals,” Thia said. “It's really about capitalising on your own followers. The adoption of conversational commerce rose in popularity as brands expanded their presence online through social media, such as Facebook and Instagram. Thia noted that processing returns are costly and they even have to figure out if the item returned could be shelved or just thrown away. It is a strategy that benefits the brand itself because it enables businesses to control their own sales channel strategy and lower the rates of returns.
“Conversational commerce focuses on messaging,” Thia told Hongkong Business. In the end, Thia became one of the brand’s satisfied customers.
Thia also received a follow-up message to check on the item delivered. Already expecting her order to be hit-or-miss, she then received a message from the brand asking for a photo of her finger to help settle the size and assuring her that, if the item did not fit, she can have it exchanged with no additional payment. She can only roughly estimate her ring size based on the chart posted on the store’s website. Leaving consumers with unanswered queries can result in $2m missed revenue per day.įiona Thia, business development director at TMX, was looking for a ring online.
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