B.

DES FASHION DESIGN

ELECTIVE

COURSE: DOD4320 E-COMMERCE AND RETAILING

FACULTY: ANITHA S

COURSE INTENT:

The course intends to expose the students to e-commerce and retailing specific to the fashion
business.

Prepared by
Anitha S
Assistant Professor
[Link]., M.F.M
COURSE OUTCOMES

CO 1: Demonstrate an awareness of the main components and concepts of e-

commerce, and the vital role it plays in modern business practice. (C3)

CO 2: Explore major opportunities, limitations, and risks of E-Commerce. (C2)

CO 3: Differentiate between E-commerce business models of a firm, and determine

the role that the Internet and related technologies can play to support this
model. (C6)
 MODULE - III

• Fundamentals of social commerce

• Major models of social shopping
• Advertising and promotions conducted in social networking
• Customer service, customer support and CRM can be facilitated by
social networking
What is social commerce?
Social commerce (also known as social shopping) combines online shopping and
social media into one seamless user experience.
The aim is to make it as easy as possible for social media users to discover a product,
learn more about it, and purchase it without having to leave the social media platform.
Examples:
Facebook/Instagram Shopping allows businesses to create a shopfront on Facebook
and Instagram, where users can browse, discover, and buy products directly.
Businesses set up their shop via Meta Commerce Manager, upload products, and sell
through Shop tabs, Shoppable posts, Marketplace, and Live Shopping.
Purchases happen in-app via Facebook Checkout (if available) or redirect to the
business website.
Payments are processed through Meta Pay, PayPal, or cards, and customer support is
managed via Messenger, Instagram DMs, or WhatsApp.
Benefits of Social Commerce
• Enhances customer trust through social proof.
• Increases brand visibility and engagement.
• Shortens the purchase journey with direct buying options.
• Uses data-driven insights for personalized recommendations.

Challenges in Social Commerce

• Privacy concerns regarding user data.
• Dependency on social media algorithms.
• Customer service limitations compared to traditional e-commerce.
Major Models of Social Commerce
Social commerce operates through various models, each leveraging social interactions to drive sales.
Peer-to-Peer (P2P) Marketplaces:
P2P platforms allow users to buy and sell directly without intermediaries. Sellers list products, buyers browse and purchase, and direct user
transactions, social validation through reviews, and personalized recommendations.
Examples: Facebook Marketplace (local buying/selling)
Advantages
• Lower Costs as there is No middleman, reducing fees for buyers and sellers.
• Diverse product selection with a wide variety, including second-hand, vintage, and unique items.
• Social trust through ratings, reviews, and buyer-seller communication enhancing credibility.
• Sustainability by encouraging resale and circular fashion, reducing waste.

Disadvantages
• Risk of counterfeit goods, non-delivery, or misleading product descriptions.
• Inconsistent product quality as items vary based on individual sellers.
• Lack of standardized shipping and return policies compared to traditional e-commerce.
Social Network-Driven Commerce:
Brands sell directly within social media apps, integrating shopping into posts, videos, and live streams.
Shoppable posts, influencer promotions, and AI-driven recommendations
Examples: Instagram Shopping (in-app purchases), Facebook
Advantages:
•Seamless shopping experience as users can browse and buy without leaving the app.
•High engagement and visibility with social media algorithms pushing trending products to target audiences.
•Influencer marketing boost by leveraging influencers to increase brand credibility and conversions.
•AI-driven personalization providing tailored product recommendations based on user behavior.

Disadvantages:
•Dependence on platform algorithms where changes in ranking systems can reduce visibility.
•Limited customer data control as platforms own customer insights, restricting direct brand access.
•High competition with brands competing for user attention, requiring strong marketing efforts.
•Transaction fees as platforms may charge commissions on sales.
Group Buying Model:
Users receive discounts when they purchase together, promoting social sharing and bulk buying.
Social-driven purchases, tiered discounts, and time-sensitive deals. Some deals require a minimum
number of buyers to unlock the discount. Users are encouraged to share deals with friends to meet the
threshold.
Examples: Groupon (discounted deals on products/services), Pinduoduo
Advantages:
•Encourages bulk purchases as sellers benefit from higher sales volume when customers buy in groups
to unlock discounts.
•Drives social sharing and virality as people invite friends to participate, increasing brand exposure.
•Creates urgency and FOMO(Fear Of Missing Out) with time-limited deals pushing users to act quickly.
•Boosts customer acquisition by attracting new buyers through appealing discounts.

Disadvantages:
•Deals may not reach the minimum buyers, leading to potential deal failures.
•Thin profit margins for sellers as high discounts can reduce profitability, making the model
unsustainable.
•Attracts price-sensitive shoppers who may not return unless another big discount is offered.
Live Streaming Commerce
Sellers showcase products in real-time video streams, engaging with viewers and answering questions,
creating an interactive shopping experience.
Instant purchasing, live product demos, audience interaction.
Examples: Amazon Live (brand-hosted shopping
Advantages:
•Real-time engagement and interaction as viewers can ask questions and get instant responses,
enhancing trust.
•Higher conversion rates with live demos making products more convincing, leading to impulse purchases.
•Stronger brand connection through interactive sessions that help brands build relationships with the
audience.
•Creates scarcity and urgency with limited-time offers during live streams pushing customers to buy
immediately.
Disadvantages:
•Requires an engaging host, as poor presentation skills can lead to low viewer interest.
•Technical issues can disrupt sales, with live streaming depending on stable internet and platform
reliability.
•Audience retention is challenging, requiring strong content and promotions to keep viewers engaged
throughout the stream.
Influencer-Driven Commerce
Influencers promote products through sponsored posts, affiliate links, or brand collaborations, leveraging their
audience’s trust to drive sales. Personalized recommendations, authenticity, and targeted marketing.

Examples: YouTube Product Reviews (tech & beauty endorsements), Instagram Collaborations (brand
partnerships),
•Celebrities – Actors, musicians, and public figures with mass appeal.
•Key Opinion Leaders (KOLs) – Industry experts or specialists whose opinions hold credibility.
•Content Creators – Bloggers, YouTubers, and podcasters known for engaging and informative
content.
•Social Media Influencers – Instagram, TikTok, and Twitter personalities shaping trends through their
lifestyle.
•Activist Influencers – Individuals promoting social, environmental, or political causes.
•Employee Influencers – Company employees advocating for their brand on professional platforms
like LinkedIn.
•Virtual Influencers – AI-generated characters that brands use for digital marketing.
 ADVANTAGES DISADVANTAGES

• Increases brand visibility and awareness through • Can be expensive, especially for macro-influencers.
influencer reach. • Risk of fake followers and engagement manipulation.
• Builds trust and credibility as influencers have loyal • Influencer controversies can negatively impact brand
followers. reputation.
• Drives engagement with authentic and relatable • ROI measurement can be challenging due to indirect
content. sales tracking.
• Enables targeted marketing by leveraging niche • Dependency on influencer credibility, which may
influencers. fluctuate.
• Boosts conversions with influencer-exclusive discount • Audience fatigue due to excessive sponsored content.
codes. • Compliance issues with disclosure and advertising
• Supports product launches with influencer-led regulations.
promotions.
Subscription-Based Social Commerce
Users pay a subscription fee for exclusive content, special deals, or personalized product recommendations,
blending commerce with membership perks.
Recurring revenue, personalized offerings, and loyalty-driven engagement.
Examples: Stitch Fix (personalized fashion styling service).
Advantages:
• Predictable recurring revenue as subscription models ensure a steady income stream for businesses.
• Personalized shopping experience through AI-driven recommendations, creating a tailored experience and
increasing customer satisfaction.
• Differentiation from competitors by offering exclusive access, early product releases, or member-only discounts
to stand out.

Disadvantages:
• High churn rates as customers may cancel subscriptions if they don’t see ongoing value.
• Difficult to maintain engagement, requiring brands to continuously offer fresh content, deals, or personalized
recommendations.
• Competition from free alternatives, as many users hesitate to pay for subscriptions when similar content or
discounts are available for free.
Advertising and Promotions in Social Networking
Social networking platforms have become powerful tools for advertising and promotions, allowing brands to reach targeted audiences,
engage customers, and drive sales. These platforms use data-driven strategies to deliver relevant ads and promotions.

Methods of Advertising & Promotions in Social Networking:

1) Paid Social Media Ads
Paid social media ads allow businesses to promote their products or services by paying platforms to display targeted
advertisements to specific audiences. These ads use detailed audience segmentation based on demographics, interests,
behaviors, and past interactions to maximize reach and conversion rates.

Target Audience Selection

Performance Tracking –
– Platforms like Facebook, Bidding & Budgeting –
Ad Creation – Businesses Metrics like engagement,
Instagram, and LinkedIn Advertisers set a budget
design ads using images, conversions, and return on
allow advertisers to target and bid for ad placements
videos, or interactive ad spend (ROAS) are
users based on age, based on objectives (clicks,
formats. monitored to optimize
location, gender, interests, impressions, conversions).
campaigns.
and browsing behavior.
Examples of Paid Social Media Ads
•Facebook Ads – Businesses run image, video, and carousel ads targeting users based on their
interests, past activity, and demographics.
•Instagram Ads – Highly visual ads appear in feeds, stories, and reels, ideal for fashion, beauty, and
lifestyle brands.

Benefits of Paid Social Media Ads

Highly Targeted : Ads reach specific users based on detailed criteria.
Instant Visibility : Unlike organic content, ads generate immediate reach and traffic.
Scalability : Businesses can adjust budgets and expand campaigns based on performance.
Measurable ROI : Detailed insights help track and optimize ad performance.
2. Organic Content Marketing: Organic content marketing focuses on creating valuable, engaging, and
shareable content that attracts and retains users without relying on paid advertisements. It builds
brand awareness, loyalty, and trust through authentic storytelling and interactive experiences.

Content Creation –
SEO & Visibility –
Brands develop Audience Engagement Community Building –
Optimized blogs, videos,
engaging content – Instead of direct Through regular
and social media posts
tailored to their selling, the content interaction, brands
improve rankings on
audience’s interests, educates, entertains, create a loyal audience
search engines and
such as blog posts, or inspires users, base that advocates for
social media algorithms,
videos, social media encouraging interaction. the brand naturally.
driving organic traffic.
posts, and infographics.

Benefits
▪ Cost-Effective as there is no direct ad spend; relies on creativity and engagement.
▪ Genuine, non-promotional content creates deeper audience connections.
▪ Quality content improves SEO and continues driving traffic over time.
Examples

Behind-the-Scenes Content – Brands share how products are made, their company culture, or exclusive team
insights (e.g., fashion brands showcasing the design process).

Tutorials & How-To Guides : Informative videos or blogs that demonstrate product use (e.g., beauty brands
sharing makeup tutorials).

User-Generated Content (UGC) & Hashtag Campaigns: Encouraging customers to share experiences with a
brand’s product and reposting them (e.g., fitness brands sharing customer transformation stories
Example: Nike’s #JustDoIt campaign
Builds trust and engagement through customer testimonials.

Memes & Viral Trends – Engaging, humorous content that aligns with trending topics to connect with
audiences (e.g., brands using viral TikTok challenges).

•Storytelling & Brand Narratives – Sharing personal or emotional brand journeys that resonate with users (e.g.,
sustainable brands telling stories of eco-friendly production).
3. Social Media Contests & Giveaways
•Encourages user participation through contests with rewards.
•Example: "Like, share, and tag a friend to win" campaigns
•Increases brand visibility and engagement.
4. Live Streaming Promotions
•Businesses use live video sessions to showcase and sell products.
•Example: TikTok Live Shopping, Instagram Live Q&A, Amazon Live
•Creates real-time interaction and urgency for purchases.
5. . Retargeting & Personalized Ads
•Uses AI and analytics to show ads to users based on their interests and past interactions.
•Example: Facebook Pixel for retargeting website visitors, Google remarketing ads
•Helps convert potential customers who didn’t buy on the first visit.
6. Influencer Marketing
•Brands collaborate with influencers to promote products.
•Example: YouTube product reviews, TikTok influencer campaigns, Instagram sponsored posts
•Helps build trust and authenticity among followers.
Customer Service, Customer Support, and CRM Through Social Networking
Social networking platforms play a vital role in customer service, customer support, and customer relationship
management (CRM) by enabling brands to interact directly with customers, resolve issues efficiently, and build
long-term relationships.
Customer Service → Focuses on helping customers before or during a sale.
Customer Support → Focuses on solving problems after a purchase.
CRM → Focuses on long-term relationship building using data from interactions.

1. Customer Service via Social Networking

•Companies use social media to answer queries, provide information, and engage with customers. Quick
response times, public visibility of service quality, and direct customer engagement.
•Example: Instagram/Facebook DMs: Customers inquire about sizing, availability, and shipping details.
Comments & Replies: Brands engage with users who ask questions on posts or reels.
2. Customer Support Through Social Media
•Brands provide real-time support for complaints, technical issues, and order tracking.
•Example: chatbots on Facebook Messenger, Airlines handle customer complaints via Twitter.
24/7 automated responses, instant problem resolution, and personalized communication.

3. CRM (Customer Relationship Management) in Social Networking

•CRM tools integrate with social media to track interactions, personalize offers, and analyze customer data.
• Personalized recommendations based on social media behavior.
• Automated follow-ups and targeted promotions.
• Enhanced customer loyalty through engagement and reward programs.
Examples
Tracking Customer Preferences: Brands analyze likes, shares, and purchases to offer relevant recommendations.
Personalized Offers & Loyalty Programs: Exclusive discounts based on shopping behavior.
Automated Follow-Ups: Sending reminders for abandoned carts, wish-listed items, or seasonal sales.