Social media platforms are partnering with e-commerce providers to further penetrate the market


DUBLIN, May 23, 2022 /PRNewswire/ — The report “Saudi Arabia Social Commerce Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics – Q1 2022 Update” has been added to from offer.

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Social commerce industry in Saudi Arabia is expected to grow by 64.9% on an annual basis to reach US$1,216.8 million in 2022.

The social commerce industry is expected to grow steadily over the forecast period, registering a CAGR of 55.6% during the period 2022-2028. The GMV of social commerce in the country will increase from US$1,216.8 million in 2022 to reach US$16,293.7 million by 2028.

In Saudi Arabia, social media platforms play a decisive role in transforming society. Over the past four to eight quarters, social media in Saudi Arabia has become a powerhouse due to the growing number of social media users in the country. The global increase in social media stands at 9.2% per year, and the Kingdom leads the race among other nations with a significant annual growth of 8.7%.

With smartphone and internet penetration increasing dramatically in the country, consumers are spending more time on social media platforms, and their association with these platforms is also gaining prominence. Due to this change in consumer behavior, which has been partly driven by the global pandemic, retailers in the Kingdom are focusing more on online offers and seamless shopping experiences for their customers in the country.

Among the various strategies chosen by retailers to reach social shoppers on social media platforms, some of the most common include asking consumers to vote for their favorite products, sharing Reels and TikTok videos, offering product recommendations personalized and to make in-app purchases.

Along with brands, social media platforms are also increasing their investments in the social commerce space to gain increasing market share in the region. In the coming quarters, the publisher expects competition in the social commerce market to further intensify with the presence of innovative regional and global startups.

Social media platforms partner with e-commerce vendors to further penetrate the Saudi social commerce market

Amid the growing popularity of shopping from social apps among consumers of Saudi Arabiasocial media platforms are entering into strategic partnerships with e-commerce vendors to strengthen their presence in the industry and gain growing market share.

  • In August 2021, TikTok, the short-form video platform, has announced that it has entered into a strategic alliance with Shopify, the e-commerce enabler for small and medium businesses. As part of the strategic partnership with TikTok, Shopify merchants will be able to create shoppable video ads, which will help them attract more consumers to their online stores.

  • The strategic partnership with TikTok will also allow merchants to access the Business Ads Manager through the Shopify dashboard. This will make it easier for merchants to dive into the social commerce space, allowing them to take better advantage of the growing trend of social commerce shopping among consumers of Saudi Arabia.

Regional social commerce startups are expanding their presence in Saudi Arabia

The social commerce market is changing very rapidly in the Middle East, with several industry startups spearheading its growth. As the shopping method continues to gain prominence among consumers, these startups are growing rapidly to gain more market share in the region.

  • dubaisocial-based social commerce startup, Zbooni is also present in Saudi Arabia, where it provides brands and retailers with tools to meet the growing demand for social commerce. In particular, the firm has an office at Saudi Arabia, where he sees growing demand for his seller app and web tools. In February 2022the company also announced that it had launched its product for businesses and retailers in Egypt as it seeks to further penetrate and grow its market share in the social commerce space.

The presence of these global and regional social commerce companies in Saudi Arabia competition is expected to further intensify over the next four to eight quarters in the Kingdom. This will continue to support the growth of the overall market in the short to medium term in the country.

The Trademark Act prohibits the sale of counterfeit products on social media platforms in Saudi Arabia

In Saudi Arabia, the Trademark Act prohibits anyone from displaying or selling products bearing a false mark. For offenders, the Ministry of Commerce has announced a prison sentence of up to one year and a fine of SAR 1 millionor one or the other.

In February 2022, the Commerce Department has arrested an individual after he was caught selling counterfeit brands on Snapchat. In addition, the individual was selling fake women’s products on a famous Snapchat account.

Apart from imprisonment and monetary penalties, anyone who breaks the law is also subject to media defamation and blocking of social media platforms in the country.


Saudi Arabia E-commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028

Saudi Arabia Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028

Saudi Arabia Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2019 – 2028

Saudi Arabia Social Commerce Industry Market Size and Forecast by End-Use Segment, 2019 – 2028

Saudi Arabia Social Commerce Industry Market Size and Forecast by End-Use Device, 2019 – 2028

Saudi Arabia Social Commerce Industry Market Size and Forecast by Location, 2019 – 2028

Saudi Arabia Social Commerce Industry Market Size and Forecast by Location, 2019 – 2028

  • Tier 1 cities

  • Tier 2 cities

  • Tier 3 cities

Saudi Arabia Social Commerce Industry Market Size and Forecast by Payment Method, 2019 – 2028

  • Credit card

  • Debit card

  • Payment

  • Prepaid card

  • Digital and mobile wallet

  • Other digital payment

  • Cash

Saudi Arabia social commerce industry market size and forecast by demographics and consumer behavior, 2021

  • By age

  • By income level

  • By gender

Reasons to buy

  • In-depth understanding of Social Commerce Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028).

  • Overview of Opportunities by End-Use Sectors – Obtain market dynamics by end-use sectors to assess emerging opportunities in various end-use sectors.

  • Develop market-specific strategies: identify growth segments and target specific opportunities to formulate a social commerce strategy; assess key market-specific trends, drivers and risks in the industry.

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