DUBLIN, May 10, 2022 /PRNewswire/ — The “Asia Pacific Social Commerce Market Intelligence and Future Growth Dynamics Data Book – 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Sales Product Dynamics Retail and Consumer Demographics – Q1 2022 Update” report has been added to from ResearchAndMarkets.com offer.
Social commerce industry in Asia Pacific is expected to grow by 38.2% on an annual basis to reach US$423,136.5 million in 2022.
The social commerce industry is expected to grow steadily over the forecast period, registering a CAGR of 34.4% during the period 2022-2028. The GMV of social commerce in the country will increase from 4 US$23,136.5 million in 2022 to reach 24 29 $266.2 million by 2028.
The growing digital boom, supported by increased internet and smartphone penetration, is contributing to the growth of social commerce around the world. Asia Pacific Region. countries like China, India, Singaporeand Indonesia have made significant investments in this sector over the past two years.
Moreover, with the growing popularity of social commerce, many startups are entering this market with innovative product offerings. However, the market is relatively concentrated, with WeChat in China and Facebook or Meesho in India holding the majority of the market share.
The social commerce market in India has already started to witness an influx of investments from various venture capital (VC), private equity (PE) funds as well as individual investors. Unlike e-commerce, which is characterized by the predominance of a few major players, the social commerce market has already seen the birth of around ten start-ups each year.
Many big brands and names such as Myntra have also entered the social commerce market by India, trying to capitalize on this new trend of shopping through social media platforms. Overall, the market is still in its nascent state in India and will reshape the dimensions of the market in the next two to three years.
Social media platforms are adding new features to take advantage of the growing social commerce market
To gain a competitive edge in the social commerce space, customer focus and innovation are becoming survival skills for businesses. As more start-ups enter the market trying to disrupt the market with new ideas, existing players also need to be creative and innovate to introduce new features to differentiate themselves. With the growing popularity of social commerce, social media platforms are also adding new features to make it easier for sellers and buyers to interact.
- In 2020, the Facebook family, which includes Instagram and Pinterest, revamped its platforms and added new tools to facilitate social commerce. These tools will help sellers streamline customer shopping experiences, especially during the pandemic. These features also allow retailers to create new storefronts and tours and the number of users visiting it can be increased through paid advertising.
- Similarly, the biggest messaging service WhatsApp is also taking its first steps into the social commerce market by introducing a new feature called Business Profile which allows users to find stores from an in-app directory. This feature has been tested in Brazil in September 2021 and should be launched in India in 2022.
New era social commerce startups Indonesia are looking to leverage this existing base to penetrate and gain market share in the growing social commerce industry. Notably, most social commerce startups in the country have adopted a reseller model, in which the platform acquires agents, who in turn sell their products on various social networks.
As social commerce startups support the growth of the industry, big tech giants including social media platforms are also increasing their investments in the space to grab a bigger share of the growing market.
Social commerce startups raise funding rounds to expand operations in Indonesia
As the social commerce industry grows at a rapid pace, startups are raising major fundraisers to support their growth and expand their operations across countries.
- In February 2022Grupin, a Indonesiabased on a social commerce platform, announced that the company had raised $3 million in a funding round led by Sequoia Capital. Notably, the company also offers a community shopping experience and bulk purchase discounts to its consumers in Indonesia. Since its launch in August 2021, the company has sold hundreds of store units, including fresh produce, packaged food, cookware, baby products and electronics. During the same period, the company experienced a growth in the number of users of 400 times.
- Kitabeli, another social commerce startup in Indonesiaannounced that the company had increased its investments in an extended Series A cycle in September 2021. The extended investment comes after the company raised $10 million in its Series A round, led by Go Ventures. Notably, the company plans to use the investment to further expand its operations in Indonesia. Founded in 2020, the company provides consumers with a platform to purchase everyday items, including cosmetics, fresh fruits, and home and technology products, among others.
Live streaming helps social commerce gain momentum in Singapore
Although the live streaming phenomenon started with the Chinese market, it has been widely adopted in different countries around the world. Asia Pacific Region. Live streaming sessions are considered to be highly interactive and help engage the customer for a long time, thus increasing the conversion rate. Additionally, the pandemic has caused stores and businesses to shut down, consequently making “live streaming” the only option for “human-to-human” interaction when shopping. Therefore, brands and businesses drive sales by offering a combination of digital and physical retail experiences through live streams.
Live trading has become increasingly popular in Singapore with Facebook Live, Instagram Live and YouTube Live and has gained popularity among Millennials. For example, @Rentadella is a local Singaporean fashion brand that sells its products through an IG LIVE sale every Tuesday night through an auction format for apparel, and it is considered a smart and effective strategy to drive strong follower engagement. Therefore, the publisher expects more brands and businesses to engage in live streaming to generate revenue over the next four to six quarters in the country.
The rise of the social commerce industry in The Philippines parallels the growth of the market in South East Asia. Being one of the youngest communities in the world, South East Asia is expected to remain one of the largest social commerce marketplaces over the next four to eight quarters. According to the analysis, social commerce accounted for more than 45% of the e-commerce market in Southeast Asia in 2021 alone and is expected to grow further in 2022.
Social commerce startups are adopting different business expansion strategies to expand their market by The Philippines
Social commerce company Pinduoduo has achieved substantial success in China over the past four to eight quarters. Notably, startups around the world are looking to recreate the success of Pinduoduo in their own region. Similar trends are visible in The Philippineswhere social commerce startups seek to recreate the success of Pinduoduo by South East Asia.
- Resellee, a social commerce startup in The Philippines, partners with individual sellers and manufacturers and farmers nationwide. The platform connects resellers with manufacturers and farmers, thus allowing resellers to choose the product they want to add to their stores and market it to potential buyers through the use of different platforms. forms of social media.
- Notably, social commerce platforms offer products in different categories including fashion and electronics. However, its main focus is groceries. During the global pandemic outbreak, the company partnered with government and farmers to meet growing demand. In November 2020the company also raised $1 million in its seed funding round with Hofan Capital and Mintech Enterprises.
E-commerce industry market size and future growth dynamics by key performance indicators, 2019-2028
Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Social commerce industry market size and forecast by retail product categories, 2019 – 2028
- Clothes and shoes
- Beauty and personal care
- Food and groceries
- Appliances and Electronics
- Home improvement
Social commerce industry market size and forecast by end-use segment, 2019-2028
Social commerce industry market size and forecast by end-use device, 2019 – 2028
Social commerce industry market size and forecast by location, 2019-2028
Social commerce industry market size and forecast by location, 2019-2028
- Tier 1 cities
- Tier 2 cities
- Tier 3 cities
Social commerce industry market size and forecast by payment method, 2019-2028
- Credit card
- Debit card
- Prepaid card
- Digital and mobile wallet
- Other digital payment
For more information on this report, visit https://www.researchandmarkets.com/r/wrkgad
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