‘Social selling’ - when I heard this words for the first time I thought that this has something in common with Facebook shops. Gemstra project showed me how wrong was I and how great potential this market has.
I guess I owe you an explanation what exactly social selling means. This is a direct sale and the most known brands who use this scheme are: Avon (estimated value $5,7b), Amway ($8.8b) and Mary Kay ($3,5b).
Main features of this social selling are:
- using independent sellers,
- multi-levels sales modes,
- financial freedom for sellers.
But despite face to face sales, a modern social seller is also very keen to use alternative, online selling channels. The good example is LuLaRoe who blew up the internet clothes market and made $2.3 billion last year. All thanks to the young mothers who wanted to make some pocket money without going out of a home.
For today more than 120 million people are involved in the social selling, including 20 million just in the US. This market value is estimated at 180 billons of USD. Looks impressive, isn’t? And this number is growing annually 7-10 per cent. Accelerated by the social media global adoption, according to the experts will reach 1 trillion of USD and 500 million of sellers in next 10 years.
Although, as all developing markets social selling is facing some serious problems. One of them is called a “Cindy Captive” when a seller without an access to the data, transactions or clients finds himself in a trap with a very limited mobility. Also, the seller can be terminated, what also influence on their attitude.
Besides, the seller who just started to work on this market has to deal with barriers to entry like high costs of startup sets – for example, LuLaRoe starter set costs around 7 000 USD. And these are the money which won’t be returned if the seller is not successful enough.
Gemstra wants to resolve these problems by building up the platform where sellers can choose the brand they want to represent. The Gemstra ecosystem allows also retailers to participate in the selling channel.
In 2017 Gemstra launched a proof-of-concept selling marketplace called Boutiques. Just in ten months platform had more than 5 million sales volume. Gained 3 000 sellers and 8 brands. Basing on this experience the team wanted to develop a marketplace not only with sellers and brands but also adding to this scheme retailers. This is how the Astra ecosystem concept was born.
For today Gemstra earns approximately 15% of sales volume transacted in BOUTIQUES and 1-2% in tolls and monthly fees from Merchants and Brands using ASTRA.
In the Astra platform, all of this players will have some role to fulfil. Retailers (merchants) will curate brands and host sellers, the brand will have a portable catalogue across different merchants and sellers finally can proceeds own data and make deals with merchants.
If you would like to learn more about Gemstra check the links below:
Disclaimer: this is NOT investment advice. This is purely our opinion, based on facts found on the project website, whitepaper, social media and etc. Please do your own research and decide if it qualifies with your risk profile.