NEWS6 January 2022

Social commerce to top $1tn by 2025

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GLOBAL – Shopping on social media platforms is expected to grow three times as fast as traditional ecommerce to reach $1.2tn by 2025, according to a new study from professional services company Accenture.

Woman using social media on smartphone

Growth is predicted to be driven primarily by Gen Z and Millennial social media users, accounting for 62% of global social commerce. 

According to the report, Why Shopping’s Set for a Social Revolution, social commerce means a person’s entire shopping experience – from product discovery to the check-out process – takes place on a social media platform. 

Just under two thirds ( 64%) of social media users surveyed said they made a social commerce purchase in the last year, which Accenture estimates to reflect nearly two billion social buyers globally.

While the opportunity is significant for large businesses, individuals and smaller brands also stand to benefit. More than half ( 59%) of social buyers surveyed said they are more likely to support small and medium-sized businesses through social commerce than when shopping through ecommerce websites.

Furthermore, 63% 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.

Half of social media users surveyed, however, indicated they are concerned that social commerce purchases will not be protected or refunded properly, making trust the biggest barrier to adoption.

Accenture’s report found that by 2025 the highest number of social commerce purchases globally are expected in clothing ( 18% by 2025 ), consumer electronics ( 13%) and home décor ( 7%). Fresh food and snack items also represent a large product category ( 13%), although sales are nearly exclusive to China. 

Beauty and personal care, although smaller in terms of total social commerce sales, is predicted to quickly gain ground and capture more than 40% of digital spend on average for this category in key markets.

 “Social commerce is a levelling force that is driven by the creativity, ingenuity and power of people. It empowers smaller brands and individuals and makes big brands re-evaluate their relevance for a marketplace of millions of individuals,” said Oliver Wright, global consumer goods and services lead at Accenture.

“Getting social commerce right will require creators, resellers and brands to bring their products and services to where the consumer is, and will be, rather than the other way around. It means working together within a dynamic ecosystem of platforms, marketplaces, social media and influencers to share data, insights and capabilities to deliver the right incentives and best consumer experience across an integrated digital marketplace.”

@RESEARCH LIVE

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