The retail industry continues to be a hotbed of patent innovation. Activity is driven by personalized shopping experience and customer-centric approach, and growing importance of technologies such as artificial intelligence, augmented reality, and cloud. In the last three years alone, there have been over 59,000 patents filed and granted in the retail industry, according to GlobalData’s report on Social media in retail: social commerce. Buy the report here.
According to GlobalData’s Technology Foresights, which uses over 126,000 patents to analyze innovation intensity for the retail industry, there are 50+ innovation areas that will shape the future of the industry.
Social commerce is a key innovation area in social media
Social commerce refers to the utilization of social media platforms to facilitate online transactions, connecting businesses and consumers. It seamlessly merges social media with e-commerce, thereby enhancing the shopping experience through interactivity and personalization. This innovative approach leverages the influence of social networks to not only endorse products, but also foster customer engagement and boost sales.
GlobalData’s analysis also uncovers the companies at the forefront of each innovation area and assesses the potential reach and impact of their patenting activity across different applications and geographies. According to GlobalData, there are 95+ companies, spanning technology vendors, established retail companies, and up-and-coming start-ups engaged in the development and application of social commerce.
Key players in social commerce – a disruptive innovation in the retail industry
‘Application diversity’ measures the number of applications identified for each patent. It broadly splits companies into either ‘niche’ or ‘diversified’ innovators.
‘Geographic reach’ refers to the number of countries each patent is registered in. It reflects the breadth of geographic application intended, ranging from ‘global’ to ‘local’.
[datawrapper id=KmWhO title='Patent volumes related to social commerce' type='lgp1']Leading patent filers in the social commerce space include Meta Platforms, International Business Machines, Tencent and Walmart. Walmart consistently explores and experiments with new channels in social commerce. In September 2022, it introduced the Innovation Partner Program, aimed at strengthening its presence in social commerce. It also established a content creator platform to fortify its foothold in social commerce, actively embracing innovative approaches to engage with its customers.
In terms of application diversity, IDEX leads the pack, while SEVEN Networks and Johnson Controls International stand in the second and third positions, respectively.
By geographic reach, Tremor International is the leading company, followed by Sgrouples and Flybits.
Social commerce has emerged as a dynamic and essential component of modern retail strategies, reshaping how businesses connect with their audiences and drive sales.
To further understand the key themes and technologies disrupting the retail industry, access GlobalData’s latest thematic research report on Retail.
