Dennis Doerfl, a former Groupon and Accenture executive, is Co-Founder of Fourstarzz Media and Commercial Director at Spreadshop.
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As the co-founder of an influencer marketing technology company and the commercial director of a merchandise shop solution, I’ve had a front-row seat for the rise of social commerce. Influencers are using merchandise to boost their brands not only for income but also to forge deeper connections with their followers. Some key players in the e-commerce space have taken notice, giving rise to SaaS companies and print-on-demand services integrating with social media giants.
In 2021, look for influencer culture to inspire more powerful social media retail integrations with almost limitless earning power for creators and the platforms that serve them.
Despite the challenges of the last year, I’ve seen three changes in the industry that I know will benefit influencers and creators in 2021. E-commerce professionals, social media agencies and influencer marketing agencies should pay attention.
1. Increasing use of e-commerce and the rise of selling via social media have produced creator commerce.
Last year was difficult for retail, but worldwide e-commerce sales grew by 27.6%. Within that rise, social commerce grew as well, and apparel and accessories remain the largest category. The global licensed merchandise market is expected to reach $338.7 billion by 2027, with a compound annual growth rate of 2.2%.
At the same time, e-commerce platforms have upped their game. Powerful and easy-to-use print-on-demand shop systems now integrate with social media platforms. Spreadshop is one such POD system, but others include Spring, Bonfire and Printful. Influencers have long been able to open an e-commerce shop, but these developments give them the advantage of immediacy, which allows them to deliver both engaging content and buying options in the very same moment.
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Influencers now have an alternative to just ads and brand collaborations. Promoting their own merchandise has become a way for them to diversify revenue streams and grow their brands. Audiences look for entertainment and then buy into their brands.
2. Influencers are becoming skilled at social commerce tactics to monetize their fame and content.
To their followers, influencers are like trusted friends whose opinions are sought and emulated. As Nielsen’s research points out, we are more likely to buy from people we know and trust. Influencers come together on social platforms like Clubhouse and Facebook; they share tips and tricks on how to gain followers and connect with fans. I’ve seen top creators often note that producing niche content and staying authentic is the foundation of the influencer-follower relationship.
Monetizing content through merchandise is funding creators and deepening the connection with their followers. I expect this to continue through 2021 with three merchandise trends:
• Personalization/everybody merchandise. What do you want to wear today? A brand, a business or a cause? Personalization means we can wear our allegiances in a size, color and style to suit us. Creators can leverage this trend to increase brand awareness.
• Instant moment merchandise. With POD, new designs are available for purchase as soon as they are uploaded by creators. POD can move almost at the speed of a meme, quickly delivering on-trend items to customers’ doorsteps and making moment merchandise possible.
• Campaign merchandise. In the U.S., many politicians blur the line between political figure and social media icon. Campaign merchandise sales help candidates raise funds. It’s quite the statement to wear a political slogan, but it’s also an opportunity to publicly support a chosen candidate.
3. POD shop solutions have integrated with social channels to enable frictionless buying for the customer and full-service fulfillment for the shop owner.
The need for POD merchandise solutions is growing rapidly. Great new platforms are also pushing into the space, and the global POD software market size is expected to reach $10.8 billion by 2026, up from almost $1.9 billion in 2020.
To support growth, creator commerce solutions will have to deliver high-quality sales platforms and integrate new technologies. One of the most recent developments is the connection between influencer videos and merchandise. As Philip Rooke, CEO of Spread Group (Spreadshop’s parent company), recently wrote for InternetRetailing, “The potential success of video plus commerce is the combination of technology and the customer desire coming together at the same time. … Entertainment and frictionless commerce are going to be the big trend of retail in 2021.”
Platforms can stay ahead of the game by understanding what influencers and creators value. From our own research and observation, I know that the following five platform features are key:
• Social selling integrations.
• Highly customizable products.
• Premium-quality items.
• Zero cash out of pocket required.
• Full-service e-commerce.
Final Thoughts
From my vantage point, creators will continue to promote their personal brands using merchandise in 2021. To be proactive as an e-commerce professional, engage with influencers directly and address their needs.
As the decade progresses, we may see influencers and creators aim not just for the magic 1 million followers mark but also for comparable commission. Follower millionaires could start to become T-shirt millionaires as they monetize their fame. SaaS companies, social media agencies and influencer marketers that harness this trend will likely have an advantage in the highly competitive online retail space.
Make sure you exercise caution, however. Merchandise companies that fail to integrate with content delivery platforms are at great risk for obsolescence. All-in-one solutions allow simultaneous content distribution, merchandise solutions and persona monetization. As influencers seek to simplify processes, stand-alone solutions that serve limited needs may not survive.
From followers to merchandise, I see influencers making a big play in the social commerce game to truly monetize their fame. Will your brand be a part of it?
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Author: Dennis Doerfl, Forbes Councils Member
