Opportunity to Sell on Facebook, Tiktok, Instagram

Social media regulation is the hot topic in Sri Lanka at present. Social platforms such as Facebook, TikTok, Instagram and WhatsApp are a force to be reckoned with, and not just limited to shaping social discussions. They are well integrated into much of everyday life. They have attracted regulation from authorities as they have impacted the status quo adversely and quickly. 

There are many sides to social media, and social commerce is a huge opportunity in my view. This too has attracted regulation from various countries. For example in Indonesia, there are reports that the government will decide to ban direct transactions on social commerce platforms, the commerce part of social media, although it has not been announced yet. This was triggered as a concern that TikTok shop has caused the decline of micro, small, and medium enterprises (MSMEs).  As a result, it is likely that TikTok will have to separate its eCommerce unit from its social media platform. Meanwhile, other platforms like Facebook and Instagram - which do not allow direct transactions in Indonesia - are likely to have much less exposure to regulatory scrutiny. It was a similar case when eCommerce websites first made their presence felt. Regulators in many countries were looking to control them as they posed a threat to the incumbents at the time. 

The concept of social selling can be traced back to the early days of the Internet when online communities and forums emerged. Salespeople began participating in these communities to build relationships and trust with potential customers. LinkedIn (2003) and Twitter (2006) and Facebook for Business (2007) provided various opportunities for selling. Facebook started allowing businesses to create dedicated pages, enabling companies to connect with customers and promote products and services. Visual platforms like Instagram (2010) and Pinterest (2010) gained popularity, offering new avenues for product promotion and brand visibility. 

Sales professionals began using specialized tools and platforms to streamline social selling efforts. These tools included social media management platforms, CRM integrations, and analytics tools to track performance and engagement. At present, Artificial intelligence and data analytics tools have been integrated into social selling strategies. 
Social selling is now part of a broader omnichannel sales strategy, where sales professionals engage with customers across multiple platforms and touch-points. It includes personalized messaging, social advertising, and monitoring customer conversations on social media. The COVID-19 pandemic accelerated the adoption of social selling, as in-person sales activities were restricted. Businesses increasingly relied on digital channels, including social media, to reach and serve customers.

 MSMEs are the backbone of any economy. They hire a majority of the domestic workforce and contribute a disproportionate component to a country’s GDP. It is right that they should be protected. However, I wonder if there are better ways to take advantage of the social selling opportunity without imposing bans like it has happened in some countries. Here are three alternative policies that could be followed that Sri Lanka could consider should such a need arise: 

■ Introduce programs to help MSMEs conduct social commerce. Although TikTok shop and Facebook shop has a large following only a very small percentage of MSMEs are on social selling platforms. Instead of resorting to banning social commerce, maybe the Government and Facebook, TikTok and others can organize a training and capacity-building programme to teach existing MSMEs on how to sell products on social media.

■ Promote MSMEs and their products in foreign markets. Can we imagine hand-painted batiks for our local villages being sold to the high-end African market or handlooms from the Eastern Province being sold to the Middle East for furnishing, or Wewaldeniya craftsmen export their famous cane furniture to the US or Chinese consumers buying Sri Lankan durians. We have a rich tradition of local Ayurvedic and Hela Doctors treating ailments along with herbal producers having the opportunity to sell medical grade food supplements to those seeking alternative therapies. They can reach the rural European market with social channels. Of course, the products may need to adapt to meet the specific market expectations. Maybe the government and social commerce platforms like Facebook, Tiktok and others can develop a social commerce campaign featuring Sri Lankan products.

■ Provide MSMEs with accessible finance for digitalisation. Digital adoption among MSMEs remains low, Singapore is at 36% which is the highest in Asia. MSMEs also have limited access to credit, and MSME loans have stagnated and with the high interest rates they are unaffordable as well. Perhaps social commerce is just the incentive MSMEs need to go digital. The government could offer loans/grants to help MSMEs buy live streaming equipment, or government-funded social commerce studios or private sector incentives provided to setup with credits to MSME’s to rent for live selling. 

There are many ways of approaching a problem, but if the only instrument in your toolbox is a hammer, then every problem becomes a nail.
Sri Lanka should learn from other countries and develop more tools and mechanisms even before such problems become a concern. Let us be better prepared.