According to a study issued by Accenture, sales on social networks such as Facebook, TikTok, and WeChat will rise three times faster than sales from traditional channels over the next three years.
According to the report, social commerce, which is defined as transactions that take place solely inside the context of a social-media platform, will reach $1.2 trillion by 2025, up from $492 billion in 2021. Consumers in Generation Z and Millennials, who are predicted to account for 62% of spending, are driving the trend.
Clothing, consumer electronics, and home decor are among the most popular items offered on social media. Beauty and personal care are also on the rise, with internet influencers playing a key role.
For mom-and-pop shops, the trend is excellent news: More than half of the so-called social customers questioned said they are more likely to support small businesses and would buy from them again than larger retailers. This could help new companies gain traction and establish loyalty.
According to Accenture, around 3.5 billion individuals utilized social media in 2021, spending an average of two and a half hours each day on it. According to Accenture, the market for social commerce in the United States and the United Kingdom is significantly less saturated than in China, where 80% of social media users make social-commerce transactions.
According to Accenture, China will continue to be the most advanced market for social commerce in terms of size and maturity, with the fastest growth occurring in developing areas such as India and Brazil.
The research was based on an online survey of 10,053 social media users in China, India, Brazil, the United States, and the United Kingdom conducted between August 12 and September 3. Earlier in 2021, it carried out in-depth interviews in those markets.