Social commerce sector projected to reach $ 1.2 trillion globally by 2025: report

As social commerce trends upward across the globe, the segment is expected to grow to $ 1.2 trillion by 2025, up from $ 492 billion in 2021. More importantly, it is expected to grow three times faster than traditional e-commerce, according to a report released by Accenture. Growth will be driven by Gen Z and millennial social media users, who will account for 62% of global social commerce spending by 2025.

Social commerce is defined as the online sales channel where a person’s entire shopping experience, from product discovery to the checkout process, takes place on a social media platform. “Driven by mobile-centric consumer preferences and the launch of new hyperlocal social commerce platforms, the emerging success of social commerce in India is a testament to the power of people and communities,” said Anurag Gupta, Managing Director and Head of strategy and advice. said Accenture India.

According to Gupta, social commerce platforms must offer consumers the right experience based on trust and satisfaction, as well as broaden their appeal through the use of local languages ​​and video interfaces to take advantage of the opportunity. Brands need to work with a thriving ecosystem comprising of platforms, creators, influencers and resellers that help users discover and assess potential purchases, Gupta noted.

Among categories purchased via social media, clothing is expected to lead social commerce purchases with an 18% share globally by 2025, followed by consumer electronics at 13% and home decor. at 7%. In China, fresh foods and snacks are also a broad category of products. Although the beauty and personal care category currently accounts for a small share of social commerce sales, it is expected to capture over 40% of digital spend on average for this category in key markets by 2025.

Social commerce is more likely to be used by consumers in developing countries. Eight in ten social media users in China use social commerce to make purchases for a given category, the report adds. However, the majority of social media users in the UK and US have yet to make a purchase through social commerce.

In India, as well as Brazil and China, users care more about features that help them discover and assess potential purchases. On the other hand, users in the UK and US market place more importance on prices and discounts. Younger generations are more drawn to live broadcasts and trust buyer reviews more, but older buyers emphasize safety features and value brand familiarity.

Additionally, individual brands and small brands are expected to benefit from the growth of social commerce, as more than half (59%) of social shoppers surveyed said they were more likely to support small and medium businesses through commerce. social than when shopping through e-commerce. websites. 63% of respondents are more likely to buy from the same seller again. The study was conducted via an online survey of more than 10,000 social media users in China, India, Brazil, the United States and the United Kingdom.

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