Ok, quick recap…What is Social Commerce?

By our definition… leveraging the social networks to drive commerce – be it online or offline.

One of the key features of Social Commerce is disruption.

Disruption of advertising & promotion channels, of sales channels and even the disruption of distribution channels.

Indeed, it’s the ability of Social Commerce to disrupt these existing elements of business that make it such a compelling thing.

Case in point – Glamagem.

Glamagem is an online fashion jewellery store with a twist – a couple of twists actually. One twist is that the collections are curated and designed by a couple of regional fashion celebrities. Smart! Use the power of celebrity to bring customers.

Anyone can visit the site and buy jewellery. BUT (and here’s the next twist) if you want to buy any of the special Limited Edition pieces, you need to be a member. That means paying around USD $90 per month. Sure, with that membership you also get a 10% discount coupon but with prices of items in the store ranging from $10 – $80, you’re not really getting any additional value out of your membership. You’re just paying for access to Limited Edition items.

So, with the current model, the success of this business will hinge on how desirable these Limited Edition pieces are. Being celebrity curated & designed should certainly help with that.

Glamagem is a self-proclaimed social commerce business. Personally, we can’t really see too many special features that make their site any more or less social than any other online store, but they are certainly using all the standard Share-type buttons and features to try encourage members to help spread the word.

The reason we’re even telling you about Glamagem is that we think with just a few little tweaks, the entire business could be driven by social commerce. The other reason is, like we said, Social Commerce is all about disruption. These guys are disrupting a traditional distribution model. What can you learn from them in building out your own social commerce features?

This business raises an interesting question for us about trying to build an ‘exclusive’ business via social networks.

In the FAQs of Glamagem, they say that all their pieces are made in limited quantities. (Maybe they should change the name of their ‘Limited Edition’ pieces to ‘Lisa S Collection’ or ‘Chi Chi Collection’ – yes, they’re the fashion celebrities behind them!)

What happens if they sell out? Well, again based on their FAQs…Bad Luck!

The great thing about this is it helps create scarcity. Get in quick or miss out!

The problem with this, at least from a Social Commerce perspective, is why would I want to tell my friends about it? The more members of the club, the more chance of an item being sold out, the more chance I will miss out. I may share it with my BFF, but I sure won’t want to share it with everyone.

Hmmm? Could be a whole series of posts on how to use Social Commerce to build a business based on scarcity and exclusiveness.

What do you think? Can it even be done?