Social media sites like Facebook, Twitter, Pinterest, Instagram, and Snapchat are used in the social commerce trend of online purchasing to advertise and market goods and services. Social interactions and user contributions, such as likes, shares, and retweets from users, are how social media campaigns succeed or fail.
The market worth of social commerce in 2021 was USD 0.62 trillion, and it will be worth USD 7.03 trillion by 2030, growing at a 30.8% CAGR during the forecast period.
Social commerce has recently gained popularity. According to a survey posted on Twitter, 97.2 million people made purchases globally using different social networks. Social commerce sales in the United States of America were projected to reach USD 36.62 billion in 2021, an increase of more than 35%.
Major drivers of the social commerce market are the convenience of making purchases straight from social media platforms and the rising use of such networks for shopping. The market for social commerce is expanding as a result of the spread of mobile devices and e-commerce.
Market Dynamics
Drivers
Due to consumers’ increased preference for online shopping and the convenience it provides, the social commerce sector is expanding. Customers can easily order goods from the comfort of their homes via social commerce platforms. Additionally, vendors in these marketplaces provide discounts, cashbacks, same-day or next-day delivery, click & collect services, EMI choices, and other services that make online shopping convenient and more profitable than offline purchasing.
Restraints
Users’ worries about how social media platforms may collect and utilize their personal information are growing as a possible threat to the market. While industry-wide technical developments are a good thing, improper use of client data can have negative personal and financial effects.
Opportunity
The market’s expansion will be aided by the establishment of markets in emerging nations, including Indonesia, Thailand, Southeast Asia, the U.S., the UK, India, and China, for social commerce. Over 424 million Chinese people who are 14 years of age and older will make at least one social transaction, according to a survey. Due to numerous people purchasing goods on social commerce websites, the Chinese social commerce market sales reached USD 351.65 billion in 2021.
Market Segmentation
Business Model Insights
In 2022, the B2C market sector held the largest market with a 55.97% share. The increasing demand for the business-to-customer (B2C) business model is a result of factors including the change in consumer behavior and thinking as well as the expanding usage of digital technology. Social commerce platforms enable customers to quickly browse, choose, and order products while comparing them to one another by reading user reviews.
Platform/sales channel Insights
In 2022, Video Commerce ruled the market with the largest share of 42.5%. The market will increase significantly over the next several years, with a CAGR of 33.6%. Live-stream shopping has been incredibly popular recently, luring spectators to make purchases from a live shopping event. For example, Walmart Inc. partnered with TikTok in December 2021 and conducted a first pilot test that enabled a live-streaming purchasing experience.
Product Type Insights
With a sales share of 23.4%, the apparel segment ruled the market in 2022. The clothes and apparel industry is bigger than any other internet business because of its widespread popularity and high demand on social media platforms. Fashion businesses found novel ways to create purchasing experiences, include influencers and creators, and forge new connections during the COVID-19 pandemic when most people were online for the majority of the time.
Regional Insights
In 2022, the Asia Pacific region held the biggest market with a 70.3% market share. The expansion of this region is largely attributed to developments in the telecommunications industry, the spread of smartphones and the internet, and the popularity of social media sites like Facebook, Instagram, 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.
In 2022, North America overtook Europe as the market’s second-largest regional segment for social commerce. During the projection period, it will expand at a substantial CAGR of roughly 29.3%.
Key Players
- Pinduoduo Inc.
- Meta Platforms, Inc. (Instagram and Facebook)
- Etsy, Inc.
- Roposo
- Fashnear Technologies Private Limited (Meesho)
- Poshmark
- Pinterest, Inc.
- Snap, Inc.
- Taobao
- Xiaohongshu
- Trell Shop
- TikTok (Douyin)
- Twitter, Inc.
- WeChat (Weixin)
- Betabrand
- Eventbrite
- Yunji Sharing Technology Co., Ltd.
- Cafepress
- Houzz
- LockerzOpensky
- Lockerz
- Groupon
- LivingSocial
- Polyvore
- Soldsie
- Wanelo
- TheFind
- Solavei
- ShopStyle (a Rakuten subsidiary)
- Fancy.com
The market worth of social commerce in 2021 was USD 0.62 trillion, and it will be worth USD 7.03 trillion by 2030, growing at a 30.8% CAGR during the forecast period. The convenience of shopping online, along with the increasing use of social media during the epidemic and the average amount of time spent on these platforms, will fuel market expansion.
