Social Bella’s successful niche play; social commerce 2.0 in the US

The Checkout is Tech in Asia’s free newsletter that breaks down the biggest stories and trends in ecommerce. [Read from your browser]( The Checkout 🛒 Welcome to The Checkout! Delivered every Thursday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in ecommerce. If you’re not a subscriber, get access by [registering here](. Hello {NAME} , During my university days, I often had my fingers in too many pies. Between a double major, freelance writing, online tutoring, and extracurricular commitments, I was spread too thinly. Sure, I was exposed to more opportunities compared to my peers, but trying to get everything right was difficult. Things might have been less stressful if I’d taken a leaf out of Social Bella’s playbook. While ecommerce juggernauts like Shopee and Tokopedia are designed to be everyone's online marketplace, Social Bella is doubling down on its primary focus: beauty products. The Indonesian beauty startup’s roster of star investors include Jungle Ventures, East Ventures, and Temasek-owned Pavilion Capital. Social Bella is reportedly raising a US$150 million round that could catapult it into unicorn status. The company isn’t the only niche ecommerce player in Indonesia that recently found success. Dekoruma, a homegrown furniture and home goods ecommerce platform, is confidently eyeing an IPO by 2023. Meanwhile, consumer electronics specialist Bhinneka got the green light for a public listing. In this week’s big story, we uncover the secrets behind the rise of Social Bella and other niche ecommerce players in Southeast Asia. Will the next batch of unicorns in the region come from those with “super verticals” like Social Bella? Revisiting history, our analysis this week looks at how US social networks, which have tried but failed to crack social ecommerce, are learning from the success of their Chinese peers. And unlike the last time, social commerce 2.0 may be here to stay. -- Tian Wen THE BIG STORY  [The next phase of SEA ecommerce: niche “super-verticals”]( Image credit: Timmy Loen While large marketplaces continue to be dominant, smaller niche players are making their mark. HOT TAKE  China’s shoppertainment spills over to the US Here’s what happened: Twitter is the [latest social media giant]( betting big on social commerce. It partnered with Walmart for a shopping livestream event this Cyber Monday that was hosted by American musician Jason Derulo. During the event, Twitter users could make purchases from Walmart via the Shop tab or Shoppable banner. Twitter joins other A-listers that have rolled out ecommerce features, such as Facebook, YouTube, Instagram, TikTok, Pinterest, and Snapchat. The success of social commerce in China has served as a wake-up call for US tech heavyweights. China’s retail social commerce sales is expected to hit [more than US$315 billion]( this year, which is about 10x higher than the US. Here’s our take: While Facebook (or Meta) and everyone else is talking about the metaverse, it’s worth noting that the tech titan has not even [cracked ecommerce]( globally. The company has rolled out several underperforming shopping features like its “buy” button, Facebook Gifts, and chatbots. Even now, [payments in Messenger]( are only available in the US. Amid the pandemic, the company launched [Facebook Shops]( in May 2020, touting new features including a live shopping experience. It looks like US tech companies have learned from earlier misadventures in social commerce by modeling their Chinese counterparts. If US firms crack this, it’ll be yet another sign that “made in China” or “copy from China” ideas can take off overseas. For one, content is now tied to commerce. Pinterest users can now add Idea Pins [to a shopping list]( that generates ads predicting what they might want. By taking photos of their friends, Snapchat users can [receive product recommendations]( for similar outfits. Facebook, TikTok, and Twitter have also integrated payments capabilities, allowing users to browse, shop, and buy while navigating content - no need to exit the app. There are bigger factors at play that may also support this new thrust. For one, consumer awareness – and demand – for social commerce in the US is on the rise right now. Just five years ago, [26% of users in the country]( didn’t even know that social media platforms actually had “buy” buttons. Brands also have to find new ways to advertise and reach out to consumers. With targeted advertising [taking a big hit]( after Apple’s iOS14 made it harder to track user data, social commerce is an alternative that allows brands to interact directly with consumers. Social media platforms are keen to deepen engagement with users and get data on their buying behavior. This would also allow the companies to better compete against ad powerhouses like Google and Amazon. That said, it doesn’t mean that social commerce 2.0 will be smooth-sailing for US players. One headwind is the growing power struggle between influencers and brands. A [public spat]( between French cosmetics giant L’Oréal and top Chinese livestreamers Li Jiaqi and Viya hints at a potential shift toward store-specific livestreaming. That could be a problem - or an opportunity - for social media firms looking to hop on the social commerce bandwagon. -- Tian Wen FYI  [Bukalapak’s financial performance in 8 charts]( The Indonesian ecommerce major said that its revenue jumped 58% to 484 billion rupiah (around US$33.8 million) in the third quarter of 2021, following an acceleration in its Mitra Bukalapak business, which focuses on serving SMEs. The increase in revenue adds extra mileage to [Bukalapak]( financial runway, which multiplied to 13 years after it raised US$1.3 billion for its public listing. Still, the company’s stock price has plunged more than 50% since its IPO, and that may affect future fundraises.  NEWS YOU SHOULD KNOW Check out Tech in Asia’s coverage of Asia’s ecommerce scene [here](. 1️⃣ SoftBank is [betting US$150 million]( on South Korean metaverse platform Zepeto, which allows users to dress their 3D avatars in luxury get-ups from high-fashion brands such as Gucci and Dior. 2️⃣ Indian online retailer Snapdeal, which competes with Flipkart and Amazon, is reportedly [targeting a US$250 million IPO]( by early next year. 3️⃣ Used-car marketplace Carro has added [another US$100 million]( in a new funding round. The company, which serves the Southeast Asian market, saw its revenue surge by 2.5x to around S$300 million (US$226 million) for the financial year ended March 2021. 4️⃣ Cyber Monday online sales in the US [fell for the first time]( since 2012, reaching US$10.7 billion as shoppers spread out their dollars to cope with the ongoing global supply chain crunch. That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preference center. In the meantime, if you have any feedback or ideas, feel free to get in touch with Terence, our editor-in-chief, at terence@techinasia.com. See you next week! [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. 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