Instragram is also an online shopping platform in Southeast Asia region

In Southeast Asia region, Instragram is not only a photos sharing website, but also a shopping platform for the local people.

 

 

 

 

 

 

 

 

Instragram is a subordinate social networking platform of Facebook. Facebook explores the shopping functions on its platforms on the basis of communications to have more local people participated. The e-commerce function of Instragram obtained 620 million users in Southeast Asia region now.

The success of social networking platforms in Southeast Asia region has several factors. Firstly, there are a plenty of middle and small-sized enterprises. Secondly, the usage rate of smart phone increased. Finally, there is no dominant e-commerce giant in South Asia as Amazon does in United States.

Bain & Co.predicted that 30% of online sales volume of Southeast Aisa region done by social networking platforms in 2016. There are about 150 million of Southeast Asians shopping online. While GlobalWebIndex claimed that there are only 7% of Americans shopping through social networking platforms among 287 million US citizens.

Facebook and Line released shopping functions by targeting Southeast Asia market in order to make more profit. The more shoppers means the more advertising revenue. Merchants always hope their products can be seen by more consumers.

Facebook added a Shop section for Southeast Asia region and allows merchants to put their products information in the obviously location of information stream. It introduced Shop feature to other markets this August.

Facebook did not reveal the revenue it obtained through e-commerce. It mentioned that the frequency of utilization of Shop ranked top 10 in Thailand,
Vietnam, Indonesia, Malaysia and the Philippines. The advertising revenue of Asian-Pacific region increased to 64% last year, while American advertising revenue just increased to to 62%.

The enterprises rely on social networking platforms as they cost cheapest and received highest efficiency. If they make promotion through e-commerce platform, they have to pay commission charge. Consumers can search goods through Facebook or Instagram and contact sellers in private.

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