The digitalization experienced after the Covid-19 health crisis created an acceleration and new avenues for commerce, giving rise to fresh, recently created concepts such as Social Commerce or Live Commerce.
In China, new trends focus on Social Commerce, which specifically refers to purchasing through social media. Also, Live Commerce, which refers to purchasing during live broadcasts or video conferences. Both concepts pursue the same objective: getting closer to their audiences and activating or boosting online sales.
Although major brands in Chile have not yet fully integrated these concepts, the main platforms consumers browse are Instagram and Facebook Marketplace, but not entirely legally. The social network Instagram has seen a growing boom in online stores, selling all kinds of items: accessories, clothing, beauty products, cleaning supplies, party favors, and school supplies.
On these two platforms, there is no law directly regulating e-commerce or sales through social media, with the exception of consumer law, which is the closest thing to parameters by which they are governed.
Social Commerce and Live Commerce in Chile
The main sales platform in the country is Instagram. Most of the stores registered under a profile were created by small entrepreneurs who started as amateurs, without having initiated activities with the Internal Revenue Service. Furthermore, they operate without specific working hours, so the delivery of receipts or any guarantees to consumers is not common.
Under these parameters, the way they advertise their sales is directed towards Social Commerce and Live Commerce, creating live videos to acquire sales. Another tool they use, and which is also not yet registered as formal work, is links with influencers, which are usually paid for through barter or informal advertising payments. The majority of these audiences are targeted at millennials and Generation Z.
Therefore, Live Commerce and Social Commerce in Chile can be perceived mainly by small businesses that use these options as the mainstay of their business plans to achieve business acquisitions. It should be noted that, unlike large companies, small businesses only have this channel to conduct their sales, lacking physical spaces.