Luxury retail gets social with F-commerce

Designers and retailers are wasting no time climbing aboard the Facebook commerce bandwagon, and who could blame them? Facebook commerce, or F-commerce, is at the forefront of every retailer’s mind as a way to convert intangible “likes” into profitable purchases.  According to Mashable, 40% of Facebook users follow a brand and 15% of those fans intend to make a purchase from that brand within 60 days.

Rachel Roy is one example of a designer who has benefitted from the advent of F-commerce.  Rather than hosting a discounted flash sale on a social commerce site such as Gilt Group, Rachel Roy hosted a three-day Facebook pop-up shop that allowed fans of the brand to purchase limited edition pieces from its new jewelry line. This dive into F-commerce resulted in Roy’s Facebook page gaining 1 fan every 1.5 seconds, and the pop-up shop selling out of the exclusive item within six hours of the sale’s launch.
 
Oscar de la Renta is another social pioneer in the fashion world.  Most recently, this iconic fashion house began selling a solid perfume cocktail ring exclusively through its Facebook page. Fans of de la Renta’s were already familiar with the product, which was the brand’s first fragrance launch in 10 years, as it was also launched via Facebook through a social sampling campaign. F-commerce has allowed the high-end retailer to connect with fans who may not otherwise be able to afford to “experience the world of Oscar.”
 
Not one to be outdone in the social sphere, fashion contemporary Diane Von Furstenberg has also taken to Facebook to sell an exclusive “wrap dress of the month.” The design of these $345 dresses changes every month and is available exclusively to Facebook fans.
 
Similarly, Bulgari has connected with its Facebook audience by developing an entry level priced product that appeals to fans who may not be acquainted, or comfortable, with the Fifth Avenue flagship store. The product line allows for personalization and a portion of the proceeds go to Save the Children.  Bulgari has differentiated its traditional product offering to appeal to its Facebook audience, while keeping the brand integrity intact through the use of unique Facebook pages. Additionally, Bulgari has created a digital wish list that allows fans to save, and purchase items they like on Facebook via the social app.
 
Aside from their obvious brand value and fashionable connections, these fashion houses have succeeded in their F-commerce endeavors for another reason; they differentiated their offerings.  F-commerce should not be treated simply as another sales venue. The value lies in engaging fans in a creative and valuable way,  rewarding them for their loyalty and encouraging new followers to stick around. As with all social platforms, F-commerce can only succeed when it delivers an asset that cannot be found elsewhere. Product exclusivity and diversification are prerequisites to success. Selling the same items, in the same manner, for the same price on Facebook will create redundancy.  Why shop on Facebook if it offers no added value to the brand’s original digital commerce site, or traditional store?  
 
In addition to F-commerce’s ability to connect brands with fans, and create a unique platform suited for a differentiated product line, F-commerce also taps into the social connection between shoppers. According to Facebook, people are 80% more likely to shop online based on a friend’s recommendation.  eBay has capitalized on the social aspect of F-commerce by launching Group Gifts, a service that allows users to connect and collectively purchase a gift for a friend. Not only does this program facilitate social gifting, it also uses Facebook Connect to analyze information on the recipient’s profile page and provide relevant gift suggestions. Furthermore, as Facebook’s Open Graph mobile platform moves into its 2.0 phase and beyond the simple “like,” “share,” and “recommend” buttons to incorporate verbs such as “I want” and “I bought”, the additional functionality of the platform will increase the social and viral reach of products.  F-commerce extends beyond simply selling product, it capitalizes of the inherently social nature of Facebook to extend the brand’s reach beyond its own fans and create new connections.
 
F-commerce is an enhanced retail experience that allows brands to customize their page and reward fans for their brand dedication through the use of exclusive offers.  High profile names such as Oscar de la Renta, Rachel Roy and Bulgari have all profited from F-commerce because they understand both the social and commercial aspects of this platform. These brands deviated from their traditional offerings because only a distinctive experience can succeed in F-commerce, a unique retail space.