During the pandemic, the E-commerce business grew exponentially as people relied heavily on online shopping. This period also saw a resurgence in shopping through social media sites. Social commerce refers to a setup where the customers can complete the entire process, i.e. selection, buying, and checking out through social media platforms like Instagram or Facebook. While there are no Covid-19 restrictions at times or they become lenient in most parts of the world, social commerce is growing increasingly. A recent study by Accenture has revealed that the market size of social commerce, i.e. shopping through social media, will grow up to $1.2 trillion by 2025.
Social Commerce to grow up to $1.2 trillion, here’s why
- People spend a significant time of their lives on social media sites. Also, they tend to rely on the information and products available on these platforms. As per the Shopping Set for a Social Revolution Report, the purchase of clothes through the new phenomena will grow the highest by 18%, followed by consumer electronics and home decor that will increase by 13% and 7%, respectively, by 2025.
2. Social media is an effective means of understanding evolving consumer preferences. The younger audience is especially habitual of seeking help from social media for most of their purchases. According to the report, by 2025, millennials will dominate global social spending. They will be part of 62% of the spending.
3. Even video interfaces have become a shopping hub for buyers, especially in countries in China. As per the Social Commerce Report by Accenture, products worth $3 billion were sold through Viya and Li Jiaqi, China’s prominent live-streaming platforms, in a single day in October 2021. This shows the impact of social commerce on the buying sentiment of people.
4. China will lead the market in terms of maturity and size. However, countries like Brazil and India will experience the most growth. As per the report, 8 from 10 social media users in India tend to rely on social commerce for buying products.
5. Recently, Omicron has influenced people to opt for the change rapidly when buying and selling products. By 2025, social commerce could grow 3 times faster than the growth rate of traditional e-commerce.
Brands will be benefitted socially
As the brands evolve to gain benefits from the growing influence of the phenomena, it will redefine the shopping experience of the customers. They will be able to chat with their friends, share a post, and do much more while exploring the catalogue of their favourite brands. On the other hand, the brands who adapt to social commerce will enjoy a greater social presence while improving their revenue through social media platforms.