Purchases on social media such as Facebook, TikTok and WeChat will grow three times faster than sales on traditional channels over the next three years, according to a study released by consulting firm Accenture.
The value of social commerce, defined as transactions that take place entirely within the context of a social media platform, will reach $ 1.2 trillion by 2025, from $ 492 billion in 2021, the company said. advice in the report. The trend is mainly driven by Generation Z and Millennial consumers, who are expected to account for 62% of spending.
The most popular products sold through social media are clothing, consumer electronics, and home decor. Beauty and personal care are also growing, with online influencers playing a big role.
The trend offers good news for mom-and-pop stores: more than half of so-called social shoppers surveyed said they would likely support small businesses over large retailers and likely buy from them again. This can allow new brands to build loyalty and gain traction.
Accenture also found that about 3.5 billion people used social media in 2021, spending an average of two and a half hours a day. The social commerce market is much less saturated in the United States and United Kingdom than in China, where 80% of social media users make social commerce purchases, according to Accenture.
China is expected to remain the most advanced market for social commerce in terms of size and maturity, Accenture said, with the highest growth seen in developing markets such as India and Brazil.
The study was based on an online study of 10,053 social media users in China, India, Brazil, the United States and the United Kingdom conducted from August 12 to September 3. She also conducted in-depth interviews in these markets earlier in 2021..
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Internet, social media, Twitter, Facebook, e-commerce, retailers, convenience stores, shopping, WeChat, cashless, live streaming, TikTok