Why Facebook Wants to Be a Retail Store

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July 28 (Bloomberg) -- Bloomberg Contributing Editor Scott Galloway explains why Facebook wants to be a retail store. He speaks with Betty Liu on "Bottom Line." (Source: Bloomberg)

Privacy breach, that all segues right into facebook trying to become an e-commerce platform.

It is all about security, right?

Can these soso networking companies gain the trust that other companies have?

It is a little scary with social met were privacy.

If someone hacks your credit card information it is incredibly inconvenient.

If someone hacks your social media account they potentially have more information on you.

I think the concern over privacy is inversely correlated to age.

If you look at how promiscuous people that are young are versus people of my generation, they are just not as concerned.

Given that, is facebook strategy going to work?

It is the right thing to do.

Initiatives and acquisitions are all on sale.

They have the capital to do great experimentation.

Absolutely the right thing to do.

Will it work?

Probably not.

The same reason we do not buy products while we are in a bar.

A lot of stores opened on facebook in 2012. the majority closed in two thousand 13. we just not in a buying mood when we are looking at our friends kids pictures.

Maybe we are not in the move now but what about five or 10 years from now?

Probably it is a trojan horse to get your credit card number.

Amazon has 250 million credit card numbers.

Apple has 800 million.

So this might be if they collect 50-2 hundred million credit card numbers, that will be huge.

Every time you want to enter into any sort of transaction it is one click as opposed to filling out credit card information now.

Think about the places you shop.

When you really think about ease of commerce, if they have your number on file, you default to that purchase.

It is just a whole lot easier.

Apple is a whole lot easier.

They know who we are.

They have specific identity information and perhaps gets to the holy grail of marketing.

You would think amazon would be in the prime position or apple to really be able to hold on that and let off.

Facebook has more data on our behavior than almost anyone.

We are on it so much in so many of us are on it.

The bottom line, 40% of consider purchases over $100 are influenced by digital.

30 billion on mobilephone commerce but will influence three quarters of a trillion dollars in in-store sales.

What about the other social networking site?

What about twitter?

At nyu it will show twitter does not have the same commerce opportunity.

When ibm ran on black friday at the analysis of e-commerce sites they hosted, the traffic coming from twitter was significantly insignificant.

The one place where people do seem to be in a commerce mood, state of mind, is platforms in asia.

Any kind of platform?

When people are on social media in asia, they are ready to buy.

Why do you think that is?

Are they just more comfortable with that?

I think it is cultural and who knows why.

When wichat was linking to the platform, the sales supposedly spiked 600% that day.

I think when you talk about social commerce, and everyone has been very excited, the one place where it might be exciting is with some of the platforms in asia.

F pretty soon you will soon be losing -- be using your phone.

Your phone will become your credit card one day.

Yes.

We talk about wearables.

Our view is the wearables market is already here and called your iphone or android.

There is no reason you should not be swiping prophetic cash register as a transaction.

That is coming.

Great to see you.

Scott galloway, bloomberg

This text has been automatically generated. It may not be 100% accurate.

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