Facebook & Instagram are two examples of social media sites that are used for social commerce to market and sell products and services. With this selling strategy, customers may purchase without leaving social network apps. Customers can browse businesses, discover products, and make purchases all within the same app, thanks to social commerce.
Social media sites featuring virtual storefronts, such as shops on Facebook and Instagram, are examples that offer social commerce as opposed to traditional social media marketing strategies that encourage customers to visit a brand’s website before making a purchase. Four social media platforms, Instagram, Pinterest, Facebook, and TikTok, include social commerce functionality.
In 2021, the market for social commerce was USD 0.62 trillion, and by 2030 it will reach USD 7.03 trillion, growing at a 30.8% CAGR during the forecast period.
India’s growing digitization is one of the key factors influencing the market’s growth. Businesses can conduct transactions using social commerce without having a physical location, saving money on overhead, infrastructure, and communication costs.
A major trend in social commerce is the rising usage of big data technologies. Large data are processed, analyzed, and extracted using big data as a software tool. Big data technology in social commerce aids e-commerce businesses in making better decisions and performing better in operational tasks.
The rising social media usage is also boosting market expansion for social commerce. More people are using social media sites like Facebook, Instagram, and YouTube for a variety of objectives. For instance, the number of individuals utilizing social media rose from 3.48 billion in 2019 to 3.96 billion in 2020, according to the Social Network Usage & Growth Statistics report in 2021. The demand for the market increased as social media usage increased. As a result, the market for social commerce is expanding as more people use social media.
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.
The market’s expansion will be aided by the establishment of markets in emerging nations, including Indonesia, Thailand, Southeast Asia, the US, 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.
By Business Model
In 2022, the B2C market sector held the largest market share of 55.97%. The increasing demand for the business-to-customer (B2C) business model is a result of factors including the change in consumer behavior and thinking and 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.
By Platform/Sales Channel
In 2022, the Video Commerce segment ruled the market with the largest revenue share of 42.5% and will expand at a 33.6% CAGR 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.
By Product Type
With a revenue 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 most of the time.
In 2022, the Asia Pacific region held 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 platforms like Twitter, Instagram, and Facebook. Additionally, the rise in smartphone and social media usage in nations like China is a major factor in expanding the regional industry.
In 2022, North America was the second-largest regional segment for social commerce and will expand at a substantial CAGR of 29.3%.
Meta Platforms, Inc. (Instagram and Facebook)
Fashnear Technologies Private Limited (Meesho)
Yunji Sharing Technology Co., Ltd.
ShopStyle (a Rakuten subsidiary)
In 2021, the market for social commerce was 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.
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