PUBLISHER: 360iResearch | PRODUCT CODE: 1471015
PUBLISHER: 360iResearch | PRODUCT CODE: 1471015
[183 Pages Report] The Social Commerce Market size was estimated at USD 27.95 billion in 2023 and expected to reach USD 32.63 billion in 2024, at a CAGR 18.92% to reach USD 94.06 billion by 2030.
Social commerce represents a subset of electronic commerce (e-commerce) that uses social media platforms to facilitate the creation and sharing of product and service information, leading to online purchases. This phenomenon leverages social media's collaborative and interactive nature to enhance the shopping experience, enabling businesses to sell their products or services within social networking sites. It incorporates user-generated content, such as customer reviews and ratings, influencer endorsements, and social advertisements, to influence buying behavior and facilitate transactions within the social media ecosystem. Increasing seamless integration of shopping features in social media platforms and rising influencer marketing for product discovery and sales are driving the growth of the social commerce market. However, high-profile data breaches and concerns over personal data usage hinder social commerce adoption. The social commerce market has an opportunity for expansion through innovations such as augmented reality (AR) for trying products virtually and leveraging AI for personalized shopping experiences and product recommendations.
KEY MARKET STATISTICS | |
---|---|
Base Year [2023] | USD 27.95 billion |
Estimated Year [2024] | USD 32.63 billion |
Forecast Year [2030] | USD 94.06 billion |
CAGR (%) | 18.92% |
Business Model: Preference for a B2C business model for seamless integration of e-commerce platforms with social media networks
In the B2B model, transactions occur between two businesses, where a business sells products or services to another. Social commerce adds a new dimension to this model by enabling these businesses to leverage social media platforms for various purposes, including marketing, sales, customer service, and engagement. Through social commerce, B2B transactions can benefit from enhanced brand visibility, direct communication channels with potential business clients, and the ability to utilize social media analytics to tailor offerings more precisely. This integration can facilitate more effective lead generation, networking, and relationship-building efforts, which are crucial in B2B. The B2C model involves transactions between businesses and individual consumers. It is the most direct form of social commerce, where businesses utilize social media platforms to sell products or services directly to consumers. This model leverages platforms such as Facebook, Instagram, and Pinterest, enabling businesses to showcase their products through posts, stories, and targeted advertising. The interactive nature of social media allows for real-time engagement, feedback, and customer service. B2C social commerce enables businesses to offer personalized shopping experiences, utilize influencer partnerships for product promotion, and leverage social proof through user reviews and testimonials, which can drive sales and customer loyalty. The C2C model encompasses transactions between individual consumers. This model is facilitated by platforms that allow individuals to sell, buy, or trade items among themselves, often in a peer-to-peer format. Within the social commerce landscape, C2C transactions can occur on dedicated platforms such as eBay or Facebook Marketplace or through feature-specific elements within broader social networks. Social commerce adds value to the C2C model by providing a socially rich environment where users can leverage their networks for recommendations, rely on social proof to assess the reliability of sellers and engage in more personal transactions.
Product: Social commerce emerging as a preferred option for personal and beauty care products
Social commerce in the apparel sector leverages social media platforms to facilitate the buying and selling clothing and accessories. The approach simplifies the discovery of trending fashion and enables brands to engage with consumers directly, enhancing personalized shopping experiences. In the food & beverage category, social commerce has revolutionized how culinary goods are marketed and sold. Using social media, brands can showcase their offerings through engaging content such as tutorials or live cooking sessions, encouraging immediate purchase actions through integrated shopping features. Health supplements have found a unique niche in social commerce, with influencers and brands educating their audience about health benefits and product usage. The health supplements sector benefits significantly from the trust and community aspect of social media, driving informed purchase decisions through shared experiences and testimonials. Home products encompass a broad range of items, from furniture to home decor, increasingly sold through social commerce. Brands utilize platforms to provide interior design inspiration and direct shopping options, making it easier for consumers to visualize and buy products within a familiar social browsing environment. In social commerce, the personal and beauty care sector significantly benefits from the platforms' inherently visual and interactive capabilities, facilitating a dynamic environment where products can be showcased through images, videos, and live demonstrations.
Regional Insights
In the Americas, particularly in the United States and Canada, the social commerce market is experiencing significant growth, driven by high social media penetration and the widespread adoption of smartphones. The U.S. has platforms, including Facebook, Instagram, and Pinterest, integrating advanced shopping features that allow users to make purchases directly through the platforms. Countries such as Brazil and Mexico leverage WhatsApp and Instagram to engage with customers, offering personalized shopping experiences. The Asia-Pacific region is showcasing significant growth in the social commerce market. China has platforms such as WeChat, Taobao, and Pinduoduo that have revolutionized commerce, integrating social elements that encourage user participation and engagement. Countries, including India and Southeast Asia, are also experiencing rapid growth in social commerce, driven by high mobile internet usage and the rising use of messaging apps and social media. However, the region faces unique challenges, including regulatory issues and the diversity of languages and cultures, which necessitate localized market entry and expansion strategies. The social commerce market in the EMEA region is diverse, with varying levels of adoption and maturity. The social commerce market in Europe is growing steadily, and Instagram and Facebook platforms are widely used in social commerce initiatives. The adoption of GDPR has raised the bar for data privacy and security, influencing how social commerce operates within the region. The Middle East shows strong potential for social commerce growth, particularly in the Gulf Cooperation Council (GCC) countries, where high smartphone penetration and a young, tech-savvy population drive social media usage. Africa's social commerce market is expanding gradually, with significant growth potential given the rising internet and mobile phone penetration.
FPNV Positioning Matrix
The FPNV Positioning Matrix is pivotal in evaluating the Social Commerce Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
Market Share Analysis
The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Social Commerce Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Key Company Profiles
The report delves into recent significant developments in the Social Commerce Market, highlighting leading vendors and their innovative profiles. These include Alibaba Group Holding Limited, Creator Co. by Shop and Shout Ltd., Etsy, Inc., JD.com, Inc., Meta Platforms, Inc., Pinduoduo by PDD Holdings, Pinterest, Inc., Poshmark Inc., Roposo by Glance Group, Snap Inc., Taggbox by Social Scape Tech LLP, TikTok Inc., Twitter, Inc., Verint Systems, Inc., WeChat, and Yunji Sharing Technology Co., Ltd..
Market Segmentation & Coverage
1. Market Penetration: It presents comprehensive information on the market provided by key players.
2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.
3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.
4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.
5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.
1. What is the market size and forecast of the Social Commerce Market?
2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Social Commerce Market?
3. What are the technology trends and regulatory frameworks in the Social Commerce Market?
4. What is the market share of the leading vendors in the Social Commerce Market?
5. Which modes and strategic moves are suitable for entering the Social Commerce Market?