According to a recent study by Accenture, the $492 billion modern social commerce industry will grow three times quicker as E-commerce to $1.2 trillion by 2025.
According to Accenture’s research, “Why Purchasing’s Set for a Social Revolution,” social commerce refers to a person’s whole shopping experience — from product discovery to check-out — occurring on a social networking platform.
More than half of the social purchasers polled (59%) indicated they are more likely to support small and medium-sized enterprises through social commerce than through e-commerce platforms. Furthermore, 63% claimed they are more inclined to buy from the same seller again, indicating the importance of social commerce in cultivating customer loyalty and driving repeat transactions.
However, half of the social media users surveyed are apprehensive that social commerce purchases would not be properly safeguarded or refunded, making trust the most significant hurdle to adoption, much as it was in the early days of eCommerce.
• China will remain the most advanced market in terms of size and maturity but developing markets including India and Brazil will experience the biggest boom.
• In India, about eight out of ten social media users use social commerce to make purchases.
• Despite the fact that India is a mature market, over half of buyers prefer to make impulse purchases rather than scheduled purchases.
• When compared to users in the United States and the United Kingdom, Indian users are more than twice as likely to sell on social media platforms.
• Chinese, Indian, and Brazilian shoppers are more interested in features that help them discover and assess potential purchases, both of which are areas where social elements improve the existing experience.
According to Accenture’s analysis, the most social commerce sales will be made in clothes (18% of all social commerce purchases by 2025), consumer electronics (13%), and home décor (13%). (7 per cent).
Fresh food and snack items are another popular product category (13 per cent), albeit sales are almost entirely restricted to China. Despite being smaller in terms of total social commerce sales, beauty and personal care are expected to soon catch up to e-commerce, accounting for over 40% of digital spend on average in important areas by 2025.
Consumers in developing countries are more inclined to engage in social commerce, and they do so frequently.
Customers in China, India, and Brazil value features that help them identify and assess possible purchases more than those in the United Kingdom and the United States.
Younger generations are lured to live streaming and trust buyer feedback more than older generations, who prefer security features and brand recognition.