Dublin, May 16, 2022 (GLOBE NEWSWIRE) -- The "Global Social Commerce Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
According to the Q1 2022 Social Commerce Survey, social commerce industry in Global is expected to grow by 35.1% on annual basis to reach US$7,14,400.7 million in 2022.
The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 32.3% during 2022-2028. The social commerce GMV in the country will increase from US$7,14,400.7 million in 2022 to reach US$37,55,589.3 million by 2028.
The increasing digital boom, backed by higher internet and smartphone penetration, is aiding the growth of social commerce in the Asia Pacific region. Countries like China, India, Singapore, and Indonesia have recorded significant investments in this sector in the last two years. Moreover, with the rising popularity of social commerce, many startups are entering this market with innovative product offerings. However, the market is relatively concentrated, with WeChat in China and Facebook or Meesho in India holding the majority of the market share.
The social commerce market in India has already started witnessing an inflow of investment from various venture capital (VCs) funds, private equity (PE) as well individual investors. Unlike e-commerce which is characterized by the dominance of a few large players, the social commerce market has already seen a dozen of start-ups coming up every year. Many big brands and names such as Myntra have also entered the social commerce market in India, trying to tap the capitalize of this new trend of buying through social media platforms. Overall, the market is still in the nascent stage in India and will reshape the market dimensions in the next two to three years.
Social media platforms are adding new features to take advantage of the growing social commerce market
To gain a competitive edge in the social commerce space, customer-centricity and innovation are becoming survival skills for businesses. As more and more start-ups enter the market trying to disrupt the market with new ideas, existing players also need to be creative and innovate to introduce new features to differentiate themselves. With the growing popularity of social commerce, social media platforms are also adding new features to make it easier for sellers as well buyers to interact. For instance,
- In 2020, the Facebook family which includes Instagram along with Pinterest revamped their platforms and added new tools to aid social commerce. These tools will help sellers to streamline the customer's shopping experiences, especially during the pandemic. These features also allow retailers to create new storefronts and viewing and the number of users visiting it can be increased through paid advertising.
- Similarly, the largest messaging service WhatsApp is also tipping its toes in the social commerce market by introducing a new feature called Business Profile which allows users to find shops from a directory within the app. This feature was being tested in Brazil in September 2021 and is expected to be launched in India in 2022.
The growing interaction of consumers with brands on social media platforms, coupled with shopping functionalities offered by Facebook, Instagram, and TikTok, have supported the rise of social commerce in Europe. With the trend gaining momentum in this region, social networking platforms, retailers, and tech giants have increased their investments in the social commerce space in the last eight quarters.
Fashion retailers are entering into the social commerce space of the United Kingdom
According to publisher's recent survey, nearly 25% of the shoppers purchased apparel, 20% of shoppers purchased beauty products, and around 19.5% of shoppers bought home electronics through social commerce in the United Kingdom. Notably, more than 50% of the population in the country depends on social commerce for buying fashion products. Consequently, more and more fashion retailers are entering this space to reach out directly to the customers and also prospective customers, where they spend maximum time. For instance,
- London-based, Baukjen womenswear brand partnered with Curalate, a visual content monetization platform, to allow the 29,0000 Instagram followers to upload their looks wearing its products with #BaukjenStyle. This enabled the shoppers to find products and styles online through intelligent image recognition technology, helping the brand engage with customers globally.
- With successful customer acquisition, its sister brand, Isabella Oliver, also injected social commerce into its business model with Curalate to expand its market share in the country.
- Similarly, fashion brand Isawitfirst partnered with the country's free live streaming social commerce app, OOOOO, to deliver a livestreamed interactive shopping experience for the customers.
- Also, the beauty brand L'Oreal UK and Ireland partnered with TikTok to enable its customers in the United Kingdom to buy products from its beauty brands Garnier and NYX Professional Make-Up products through the TikTok app.
In Africa and Middle East, the popularity of the social commerce sector has surged significantly over the last few quarters. While the global pandemic has resulted in a growing shift toward online shopping from e-commerce platforms, consumers in large numbers have also started purchasing products through social media platforms, such as Facebook, Instagram, and TikTok, in this region.
Notably, social media platforms that have the contextual relevance and scale to drive product discovery are expected to lead the social commerce market in South Africa. In the United States, Facebook, along with Instagram and Pinterest, have provided consumers with the best product discovery feature and are therefore leading the social commerce market in the country. The same market expansion strategy can be expected from Facebook and Instagram in South Africa.
Facebook recorded the fastest growth in the social commerce space in South Africa
There has been a big rise in the number of consumers shopping through social media platforms in South Africa over the last four to eight quarters. Consequently, payments firms are experiencing a big rise in the number of payments coming to their gateway from social media platforms in the country. Among the various social media platforms that are operational in the social commerce market, Facebook recorded the biggest increase in order volumes and transactions. For instance,
- According to PayFast, the social media platform has experienced an increase of 200% year on year, leading to July 2021, in the payments directed from Facebook to its payment engine in South Africa.
With the firm continuously innovating with its social commerce features and investing in new product development, the publisher expects Facebook to dominate the social commerce sector in South Africa in the near term. However, with other firms also gaining traction among consumers, competition is expected to intensify over the next four to eight quarters. This growing competition among social media platforms will keep supporting the market growth from the short to medium-term perspective in the country.
Over the last four to eight quarters, the social commerce industry has gained rapid momentum across Latin America, especially in Brazil and Mexico. The trend is also gaining momentum in other Latin American countries, such as Argentina, where the e-commerce industry has recorded significant growth ever since the outbreak of Covid-19. In parallel to the growth achieved by the e-commerce sector, buying through social media platforms has also gained popularity among consumers.
Innovative social commerce startups are bringing e-commerce to the non-digital consumers in Mexico
In Latin America, a large proportion of consumers still do not have access to digital channels, such as e-commerce platforms and mobile wallets. Moreover, consumers are also wary of the growing concerns around online fraud. Social commerce platforms are innovating with their product offerings in Mexico to tap into this consumer demographic. For instance,
- Launched in 2021, Neta is a Mexican social commerce startup that brings e-commerce to non-digital consumers in the country. Notably, the shopping model of Neta leverages mom-and-pop stores, the most dominant retail channel having a density of approximately 20 people for every shop in Mexico. The mom-and-pop stores serve as the initial entry point for the firm to a steady base of hundreds of weekly clients.
- To further the popularity of its social commerce platform among consumers, the firm uses a Pinduoduo-inspired gamification feature. The mom-and-pop stores also function as a pick-up point for deliveries. Rather than delivering to each individual client, the firm fulfills weekly client orders in a single drop to each shop in the country. Through its innovative business model, the firm has gained increasing traction among consumers.
This title is a bundled offering provides detailed 21 reports, covering global insights along with data centric analysis at global and country level:
1. Global Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
2. Argentina Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
3. Australia Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
4. Brazil Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
5. Canada Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
6. China Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
7. France Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
8. Germany Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
9. India Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
10. Indonesia Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
11. Italy Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
12. Kenya Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
13. Mexico Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
14. Nigeria Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
15. Philippines Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
16. Russia Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
17. South Africa Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
18. Thailand Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
19. United Arab Emirates Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
20. United Kingdom Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
21. United States Social Commerce Market Intelligence and Future Growth Dynamics (Databook)
Reasons to buy
- In-depth Understanding of Social Commerce Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028).
- Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
- Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate social commerce strategy; assess market specific key trends, drivers, and risks in the industry.
For more information about this report visit https://www.researchandmarkets.com/r/rs80y0
