Indeed, 51% of Gen Z consumers frequently or sometimes purchase everyday items through social media, according to 2022 research from the Path to Purchase Institute. What’s more, 64% say they’re frequently or sometimes influenced by brands or retailers to buy items they’ve seen on social media.
The beauty category also has higher rates of Gen Z-ers shopping online in general when compared with food and beverage, household, personal care items, and pet care supplies.
Within social commerce, more beauty and wellness companies are moving closer toward a DTC model, says Napierski, but rising acquisition costs continue to present a challenge thanks to shifting ad algorithms and increasing privacy regulations affecting an ability to target consumers effectively.
“Now companies and brands are looking for ways to promote their products more authentically or more effectively to end consumers,” he says. “That's where we see this affiliate marketing model going.” This includes with influencers and micro influencers, as more companies transact directly or through leads via social media or via social medium onto e-commerce platforms.
To further unlock the opportunities in social commerce, Nu Skin has partnered with Infosys to modernize its infrastructure and leverage Infosys’ Equinox digital commerce platform, which has a microservices-based, API-first and cloud-native design. By doing so, the beauty company expects to increase its personalization capabilities across websites, mobile apps, and other smart devices.
Up until now, cloud technology has been about increasing the company’s scale and reach, says Napierski, but moving forward leveraging the data insights from this partnership will focus on immersing the company in the customer experience across touchpoints.