A new study by Accenture has found that the $492 billion global social commerce industry is expected to grow three times as fast as traditional ecommerce to $1.2 trillion by 2025. The growth, it said, is predicted to be driven primarily by Gen Z and Millennial social media users, which will account for 62 per cent of global social commerce spend by 2025.
It also said that users from India are more than twice as likely to sell on social platforms compared to users in the US and UK. “Driven by mobile-first consumer preferences and the launch of new hyperlocal social commerce platforms, the emerging success of social commerce in India is a testimony to the power of people and communities,” said Anurag Gupta, Managing Director and Lead (Strategy & Consulting), Accenture in India.
The report defines social commerce as a person’s entire shopping experience — from product discovery to the check-out process — taking place on a social media platform.
“Just under two thirds (64 per cent ) of social media users surveyed said they made a social commerce purchase in the last year, which Accenture estimates to reflect nearly 2 billion social buyers globally,” the report argued.
It said that while the opportunity is significant for large businesses, individuals and smaller brands also stand to benefit. According to the report, more than half (59 per cent ) of social buyers surveyed said they are more likely to support small and medium-sized businesses through social commerce than when shopping through ecommerce website.
Furthermore, 63 per cent said they are more likely to buy from the same seller again, showing the benefits of social commerce in building loyalty and driving repeat purchases. “To take advantage of this growing opportunity, it will be crucial that these social commerce platforms offer consumers the right experience built around trust and satisfaction, and broaden their appeal through the use of local languages and video interfaces. Furthermore, brands need to work with a thriving ecosystem comprising platforms, creators, influencers, resellers that helps users discover and evaluate potential purchases,” Gupta added.
The report also suggested that while China will remain the most advanced market both in size and maturity, yet the highest growth will be seen in developing markets such as India and Brazil. “Nearly eight out of ten social media users in India use social commerce to make purchases. Despite being a mature market, almost half of consumers in India are making more impulse purchases than planned purchases,” it added.
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