Social commerce enables direct contact between buyers and vendors, including ratings, online communities, social advertising, post shares, and online stores. It supports consumers purchasing goods and services online and offers them a personalized shopping experience. Organizations worldwide are moving their businesses to e-commerce platforms because they provide constant audience growth, high search engine ranking, and genuine interaction and traffic. Additionally, it aids businesses in fostering customer loyalty and confidence and increases overall sales.
The market for social commerce in 2021 was worth USD 0.62 trillion, and by 2030 it will reach USD 7.03 trillion, growing at a 30.8% CAGR during the forecast period.
The social commerce industry has experienced rapid growth due to the rise in social media usage and the more convenient and customized shopping experience it offers to consumers. Many companies have embraced social commerce to connect with and engage with their customers and to give customers a new way to find and buy goods. Social media sites like Facebook, Instagram, and Pinterest, as well as e-commerce sites like Amazon and eBay that have integrated with social media, are the industry leaders in social commerce.
There has been a significant change in consumer views and preferences. One of the key factors driving the growth of the social commerce market is a change in consumer preferences. Consumers have grown accustomed to quick communication and anticipate instant customer support with advancements in mobile technology. Consumers can express their preferences using user ratings, customer ratings, reviews, user suggestions, referrals, forums, and communities. By utilizing social commerce statistics, social media optimization, social advertising, augmented reality, shared pick lists, peer-to-peer sales platforms, group buying, peer recommendations, influencer marketing, user-curated shopping, and participatory commerce, social commerce companies like Facebook Commerce (f-commerce) can capitalize on these preferences and propel the growth of the sector.
The rising fraudulent activities hamper the market growth of social commerce through social media platforms and tight government regulation regarding the sales of products through social media.
Market penetration of social commerce in newer regions like the US, Southeast Asia, Indonesia, the UK, China, and India will provide lucrative growth opportunities in the future. Per a study, nearly 424 million Chinese people above 14 will make one social purchase. The Chinese social commerce market in 2021 was worth USD 351.65 billion because various users were purchasing products from social commerce sites.
By Business Model
On the basis of the business model, the market is segmented into consumer to consumer, business to business, and business to consumer.
In 2022, the B2C segment led the market with a revenue share of nearly 55.97%. The increasing demand for the business-to-consumer (B2C) business model results from factors like the change in customer behavior and mindset as well as the rising adoption of digital technology. Social commerce platforms enable customers to quickly browse, choose, and purchase products while comparing them to each other by reading user reviews.
By Platform Channel
On the basis of platform, the market is segmented into group buying, product reviewing platforms, social reselling, product review platforms, video commerce, and group buying social network-led commerce.
The video commerce segment ruled the market with the largest revenue share of nearly 42.5% in the year and will expand at a 33.6% CAGR. Live-stream buying has recently become incredibly popular, attracting viewers to purchase from a live shopping event. For example, Walmart Inc. partnered with TikTok in December 2021 and conducted a pilot test that enabled a live-streaming purchasing experience.
By Product Type
In terms of product type, the market is segmented into health supplements, personal & beauty care, accessories, home products, apparel, food & beverage, and others.
The apparel segment was the biggest market in 2022, with 23.4% of the revenue share. The clothing and apparel industry is bigger than any other online company due to its widespread popularity and high demand on social media platforms. Fashion retailers found novel ways to foster purchasing experiences, involve influencers and creators, and forge new connections during the COVID-19 pandemic when most people were online most of the time.
In 2022, Asia Pacific was the global market leader, with a revenue share of nearly 70.3%. The expansion of this region is due to the developments in the telecommunications industry, the spread of smartphones and the internet, and the popularity of social media like Instagram, Facebook, and Twitter. Additionally, the rise in smartphone and social media usage in nations like China is a major factor in the expansion of the regional industry.
North America was the second biggest regional market in 2022 and will expand at a 29.3% CAGR during the forecast period.
- Meta Platforms, Inc. (Instagram and Facebook)
- Etsy, Inc.
- Fashnear Technologies Private Limited (Meesho)
- Snap, Inc.
- Trell Shop
- Pinduoduo Inc.
- Pinterest, Inc.
- TikTok (Douyin)
- Twitter, Inc.
- WeChat (Weixin)
- Yunji Sharing Technology Co., Ltd.
- Lockerz Opensky
- ShopStyle (a Rakuten subsidiary)
The market for social commerce in 2021 was worth USD 0.62 trillion. And by 2030 it will reach USD 7.03 trillion, growing at a 30.8% CAGR during the forecast period. The rising usage of various social media platforms is accelerating the growth of the social commerce market.
By permitting the client to shop and checkout straightforwardly through web-based entertainment stages. Social trade dispenses with pointless extra advances and smoothes out the purchasing system. Also, individuals will quite often buy items in light of motivation and suggestions from individuals they trust on. Thus, during the estimated period, the market is supposed to get momentum inferable from the entrance of a smooth shopping cycle and item revelation and checkout. Besides, the expanded number of intrigued purchasers from various web-based entertainment stages like Pinterest, Snapchat, Facebook. And Instagram are additionally expected to drive market development over the conjecture period. Social trade, and the utilization of web-based entertainment stages to drive or potentially process online buys, have prompted new types of shopping as a team with virtual conditions.
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