📈#018: The shake-up forcing a social marketing reboot in retail

Welcome to our first June issue of Market Mosiac, where our goal is simple: obsessively arm you with intelligence to outmaneuver the competition and make smarter decisions for long-term growth with economic undercurrents and consumer evolutions in view. 📈

The realms of social media and e-commerce are now converging at a rapid pace, catalysed by both new technologies and evolved consumer behaviours. For brands, executives and retailers looking to drive sales through social channels, simply having a presence is no longer enough. You need to get creative and seamlessly blend fun with buying.

This week’s edition breaks down the latest shifts and developments reshaping how brands should sell on social media.

— Insights Team, Rwazi

Our Edition this week:

• Data Spotlight

• The Pulse

• Sector Scan

• Our Competitive Watch

DATA SPOTLIGHT
Rethinking the social storefront

For many years, attempts to turn social media into a direct shopping destination previously failed as users have preferred the entertainment focus. However, new ideas like TikTok Shop are trying again to blend shopping into the scrolling experience.

Our data analysis shows that while only 14% of consumers currently leverage social checkout options, 48% are interested in whether the experience is smooth and value-added. Meeting this potential will require brands to reframe social shopfronts not as e-commerce extensions but as curated boutiques offering surprise, delight, and gamified exclusives.

Key Insight: To get users shopping socially, brands need to stop treating social platforms as sales channels and use them as vibrant content playgrounds and experiential canvases.

Key Stats:

• 73%: The percentage of Gen Z youth saying they're likely to make purchases through social apps in the next year

• 35%: Brands that are already leveraging the social gamification trend, like augmented reality lens challenges

• 62%: Consumers who want more behind-the-scenes, "human" content from brands on socials

• $58B: The projected spend on influencer marketing by 2028, up from $16B in 2022

THE PULSE
Featured Chart: Retail social sales from 2022 to 2025 (in USD billions)

SECTOR SCAN
The content value equation flips

Historically, social media creators received brand payouts primarily for access to their audience. However, as the influencer economy has exploded, the value model is shifting — creators themselves are becoming the prize.

Our analysis shows consumers demand more from creators regarding quality, authenticity, and boundary-pushing creativity from their favourite personalities.

As a result, brands are boosting influencer marketing spend by 22% this year and increasingly tapping elite creators as concept generators, curators, and true creative partners.

Key Insight: Brands must shift from renting influencer distribution to investing in creator talent as subscription-level benefits - allowing brilliant minds to drive content on their terms.

OUR COMPETITIVE WATCH
Meta's TikTok obsession

Meta has made it clear that dethroning TikTok is its singular competitive fixation. Beyond cloning products like Instagram Reels, the company has diverted billions in resources toward AI capabilities to power a TikTok-esque personalised video feed across its apps.

However, our data analysis found what draws users to TikTok's offering is not just its predictive engine but its completely refreshed canvas for creativity and expression. Meta's repurposed platforms may struggle to replicate that spontaneous spark.

Key Insight: While AI enhancements are powerful tools, true differentiation ultimately stems from enabling uninhibited creative authenticity.

WHAT IS HAPPENING AT RWAZI?
Our upcoming Rwazi CEO Forum (Lagos Edition)

In the ever-evolving business world, staying ahead requires more than just keeping up with trends – it demands a deep understanding of the consumers that drive your success. The Rwazi CEO Forum 2024, following the success of our first edition in Nairobi, is your key to unlocking the code and decoding the intricate consumer landscape of dynamic markets.

This premier event, themed "The Consumer You Want," is a global convergence of industry leaders, visionaries, and innovators through thought-provoking discussions, insightful keynotes, and exclusive networking opportunities.

But that's not all. As an attendee, you'll receive an expertly curated consumer trend report – a strategic blueprint that puts you ahead of the curve. This comprehensive resource analyses in-depth the latest consumer trends, market opportunities, and actionable insights tailored to your business needs.

More details will come in the coming weeks, so stay tuned to our socials and newsletter.

Don’t forget to visit our new website today to experience how we are redefining the future of consumer market intelligence.

Thank you for reading and joining us on Market Mosaic this week. We hope this edition provides valuable, actionable insights for deciding with data. 📊 

You can read the more extended version of this newsletter edition with detailed insights here.