DUBLIN, May 12, 2022–(BUSINESS WIRE)–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.
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.
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.
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.
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.
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