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Chat-based luxury fashion providers Threads raised USD 20 million this month, with the aim to grow its social media and shopping service. The brand doesn’t have its own ecommerce site, instead it relies largely on Instagram and also connects customers with personal shoppers on chat apps like WeChat and Whatsapp.

Three insights to take from this innovation:

• Social channels are the new storefronts. In 2017 there were 1.8 billion messaging app users, and the time spent in those apps is forecast to double between 2015 and 2019 (Side note: apparently to 12 minutes per day. Really, only 12?! ;) Thread might be an extreme example, but it’s simply serving customers in the places where they’re spending their time. Are you?

• Customers will demand friction-free retail experiences. We’ve written at length that the Future of Customer Experience lies either in relentlessly saving customers’ attention, or aggressively seizing it. As such, m-commerce won’t be about more apps, but about leveraging existing mobile ecosystems to create seamless and ultra-convenient customer experiences. Just witness the success of WeChat’s mini-programs, now seeing over 170 million daily users. 

• Chat + Insta + Luxe = a perfect match. Threads’ customers spend an average of USD 3,000 per transaction! Don’t assume that the fast, informal and even playful nature of mobile social channels means they can’t support some serious spending!

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