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The global social commerce market size is estimated to grow by USD 4,196.98 billion between 2022 and 2027 accelerating at a CAGR of 31%.
Social commerce enables consumers to customize their search and purchase products based on reviews and feedback which is a major factor driving the growth of the market. The reviews and positive feedback retain customer loyalty. Additionally, the compelling advertisement on social media platforms such as Instagram, and Facebook and the rising number of mobile internet users is positively impacting the market growth.
This report extensively covers market segmentation by the device (laptops and PCs, mobiles, tablets, and others), business segment (business to consumer, business to business, and consumer to consumer), and geography (APAC, North America, Europe, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The global social commerce market is highly competitive. To captivate customers vendors compete on parameters like product portfolio, pricing, delivery options, payment options, policies, varieties, offers, and technological advances. Technological innovations and creativity play a significant role in driving the market growth.
For instance, Barnes & Noble and Sephora, use the Jifiti app that helps in purchasing and sending virtual gift cards. These gift cards are directly delivered to the recipient's inbox and can be used for online and in-store purchases, which, in turn, will fuel the growth of this segment of the focused market during the forecast period.
The laptops and PCs segment was valued at USD 289.15 billion in 2017 and continue to grow by 2021. The large screens of laptops and PCs enhance the visual appeal of social media website platforms. The growing popularity of social networking websites has led to growth in the global social commerce market. Laptops are widely used for gathering information such as customer reviews, product information, and product ratings.
Mobile phones are commonly used for accessing social commerce websites. For instance, Qwiqq, a social commerce app, is designed for m-commerce sales. The app is linked to PayPal (an American online transaction service provider) and social media websites, such as Facebook, Foursquare, and Twitter. These websites provide product information to consumers.
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The retail industry is witnessing a rise in e-commerce on social networking platforms as consumers increasingly use tablets instead of PCs for online shopping. This trend has resulted in an increase in group buying. Retailers prefer using tablets to access social media websites because of their compactness and portability. They use these devices extensively to collect, compile, and post customer reviews on social networking websites.
B2B social commerce is the process of selling products between two businesses online. The benefits of social commerce platforms, such as the expansion of business reach in a cost-effective manner and additional sales channels, are major factors in encouraging B2B companies to increase their online presence. In 2021, global online sales on B2B social commerce sites, log-in portals, and similar marketplaces increased by 17.8% to USD 1.63 trillion from USD 1.39 trillion in 2020.
The increasing presence of online shopping has been a major factor driving the increased penetration of social commerce services among B2C companies. Another major factor driving the growth of this segment is increasing retail social commerce sales globally.
C2C, or customer-to-customer, is a business strategy that promotes transactions between private entities, especially online. C2C enterprises serve as middlemen, fostering participation and assisting consumers in reaching larger audiences. C2C enterprises facilitate customer connections by locating and connecting consumers and sellers.
APAC is estimated to contribute 76% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Investments in telecommunication infrastructure are driving market growth, particularly in the APAC region. This is due to the high penetration of smartphones and increasing unique mobile subscribers. The region has experienced a surge in data traffic, which can be attributed to the developing telecommunications infrastructure and mobile data-centric offerings from telecommunication companies.
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Lockdown restrictions were lifted in APAC in 2021 as a consequence of wide-scale vaccination drives. This led to the reopening of offline distribution channels such as retail stores. Despite this, consumer preferences for online purchases are expected to be increasing significantly due to the resumption of productional activities across the end-user industries along with transportation activities, which, in turn, will drive the positive growth of the regional market during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Social Commerce Market.
Advance - The company offers social commerce through the social media platform, Reddit. Also, the company offers different types of media such as newspapers, news and information websites, magazines, and others.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
To expand the customer base, the e-commerce industry relies on social media platforms for advertising. Advertisers use banner display ads and sponsored content to attract customers, taking advantage of the platforms' growing popularity. Social media platforms, such as Facebook and Twitter, allow advertisers to effectively engage with their target audience by sharing content that is viewed and shared by users. This circulation of content helps drive traffic to the company's website, increase the customer base, and leverage market growth during the forecast period.
During the forecast period, the global social commerce market will extensively use real-time bidding (RTB) to target customers. With an increasing number of vendors entering the market, RTB implementation is crucial for vendors. RTB is an online advertising service that involves an online bidding process for marketers, advertising agencies, and media procurement agencies to trade advertising inventory in real-time. Vendors provide a platform to carry out the auction process when a visitor requests to visit an e-commerce website via social media. The vendor sets a floor price for that visitor, allowing advertisers to monitor their activities and bid accordingly. The vendor selects the winning bid, and the ad of the winning bidder is displayed for the visitor. These factors will drive the global social commerce market during the forecast period.
Stringent rules by the government are hindering the market. A majority of countries do not allow minors to conduct monetary transactions. However, the age of the majority varies across countries. Products such as certain food items, weapons, alcohol, and antiques are restricted from purchase. Non-compliance can pose a challenge to social commerce businesses, which can reduce the growth of the market during the forecast period.
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The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Social Commerce Market Customer Landscape
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Social Commerce Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 31% |
Market growth 2023-2027 |
USD 4,196.98 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
29.3 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 76% |
Key countries |
US, China, Japan, Thailand, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advance, Alibaba Group Holding Ltd., Automattic Inc., ByteDance Ltd., Charlton Media Group, Etsy Inc., Eventbrite Inc., Fashnear Technologies Pvt. Ltd., iQIYI Inc., Meta Platforms Inc., Microsoft Corp., One97 Communications Ltd., PayPal Holdings Inc., PDD Holdings, Renren Inc., Shopify Inc., SINA Corp., Twitter Inc., Verizon Communications Inc., and Tencent Holdings Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Device
7 Market Segmentation by Business Segment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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