The Global Social Commerce Market size is expected to reach $1948.5 billion by 2026, rising at a market growth of 29.4% CAGR during the forecast period. Social commerce basically uses social networking websites for promoting and selling services and products. It gives an option to buy products through any of the social media platforms. The increasing demand for social commerce is expected to gain attraction due to the convenience in shopping and increased usage of smartphones, and social media are a few factors contributing towards its market growth. Quite a lot of e-commerce vendors publicize their products on their social media platforms to reach out to a well-built customer base. These platforms help these e-commerce firms target new clients through interesting posts related to products. As users also share these posts, it then helps them to reach new customers. Consequently, social commerce is gradually gaining traction, a trend likely to continue over the upcoming period.
The COVID-19 pandemic led many countries to impose necessary and strict lockdown measures. Due to this, the market saw a slight slump in 2020. The first few months of 2020 were under partial and after that complete shut-down worldwide. As a consequence of this shutdown, quite a few manufacturing supply chain and plant operations came to an abrupt halt, and thus the market witnessed a slight decline. Though companies have resumed operations, the market is likely to register moderate sales in the year. The market started to rebound around Q4 2020, a trend likely to continue through 2021.
Although e-commerce and social networking have been existed for so long, there exists a growing need for reformation of the two. The unification of these industries has taken the market by storm and is likely to impact the industry greatly, in the upcoming years. Though both these markets are in their early maturation phases; the blend of these solutions is bound to drive their growth. While social media is thoroughly growing beyond advertisements; social commerce is on the edge of expanding beyond a substitute mechanism for payments.
By Business Model
Based on Business Model, the market is segmented into Business to Consumer (B2C), Business to Business (B2B) and Consumer to Consumer (C2C). The B2C segment had the largest revenue share of the market in 2019. Social commerce platforms enable customers to impeccably view, choose, and order products at the same time they can compare the same on the basis of reviews posted by other users. Also, customers can get the products at a low and affordable price as there is no involvement of a middleman in the business to consumer model, thus businesses have enough to spend on promotional campaigns and order fulfilment.
By product Type
Based on Product Type, the market is segmented into Apparel, Personal & Beauty Care, Home Products, Accessories, Food & Beverages and Health Supplements & Others. The apparel segment held a significant market share of the global social commerce revenue in 2019. Apparels are the most popular selling products on online and social media platforms. A large number of vendors are selling apparel in this market. Due to the outbreak of COVID-19, there was strict lockdown in many countries, people started spending more time online and they explored and get attracted by new social commerce shopping platforms.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America has the highest rates of internet penetration across the globe. Additionally, there has been a sharp increase in time spent on social media by the users due to the COVID-19 pandemic, in turn creating lucrative opportunities for market growth over the forecast period. Asia Pacific held the major share in 2019.
The major strategies followed by the market participants are Product Launches and Partnerships. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation, Alibaba Group Holdings Limited, and Facebook, Inc. are some of the forerunners in the Social Commerce Market. Companies such as Pinterest, Inc., PayPal Holdings, Inc., Reddit, Inc., Poshmark, Inc., Etsy, Inc., and Twitter, Inc. are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Facebook, Inc., PayPal Holdings, Inc. (eBay), Twitter, Inc., Microsoft Corporation (LinkedIn Corporation), Alibaba Group Holdings Limited (Taobao), Sina Corporation, Pinterest, Inc., Etsy, Inc., Reddit, Inc. (Advance Publications, Inc.), and Poshmark, Inc.
Recent strategies deployed in Social Commerce Market
Partnerships, Collaborations, and Agreements:
May-2020: Pinterest collaborated with Shopify, a Canadian multinational e-commerce company. Following the collaboration, Pinterest launched a new app that gives more than one million merchants a quick way to upload catalogs to Pinterest. Those catalogs, then turn into shoppable Product Pins, in just a few clicks. The Pinterest app on Shopify involved a suite of shopping features such as catalog ingestion, tag installation, automatic daily updating of products, and an ad-buying interface.
MAR-2020: Taobao collaborated with Weibo, a Chinese social media platform. Under this collaboration, Weibo launched a tool called Weibo Xiaodian, which enabled the microblogging platform’s users to add goods hosted on C2C marketplaces including Taobao, JD.com, and SaaS vendor Youzan to the platform.
Feb-2020: Reddit came into partnership with Tagboard, a software platform aggregating social media content. The partnership traced Reddit’s first foray into aggregated content sourcing for broadcast. It also enabled more than 250 of the largest global broadcast entities to use the voice and ideas of Redditors for broadcast news, sports television, and entertainment shows.
Jan-2020: PayPal came into partnership with UnionPay International (UPI), a subsidiary of China UnionPay. Under this partnership, PayPal agreed to support UPI acceptance worldwide, where PayPal is accepted by giving UnionPay cardholders more choice when shopping. Along with that, UPI also explores opportunities to support PayPal’s merchant and consumer ambitions in China.
Jan-2020: Pinterest came into partnership with SmartCommerce. The partnership enabled Pinterest’s more than 320 million active monthly users to easily add products they explore on the platform to a shopping cart. By using SmartCommerce Click2Cart technology, brands create e-commerce experiences on digital touchpoints like websites, digital ads, social posts, and online videos.
Mar-2019: PayPal entered into a partnership with Instagram, known as Checkout on Instagram. It allows the shoppers to buy, track and manage their purchases with leading retailers directly within the social media site.
Acquisition and Mergers:
Dec-2020: Facebook signed an agreement to acquire Kustomer, an omnichannel Software-as-a-Service (SaaS) CRM platform. The acquisition will provide businesses with more data and help build consumer confidence as social commerce slowly gains traction.
Jul-2019: Etsy, Inc. signed an agreement for acquiring Reverb Holdings Inc., an online marketplace for new, used, and vintage music gear. The acquisition will firmly align with Etsy’s mission of keeping commerce human.
Product Launches and Product Expansions:
Oct-2020: LinkedIn introduced the Stories feature in India. It allows the users to publish photos and videos up to 20 seconds long that could be seen on their profiles for 24 hours before disappearing. The Stories enables members to send messages to connections and followers, and mention/tag connections in a Story.
Jul-2020: Taobao launched a new rating system, which rewards outstanding young creators and small businesses with greater market exposure. These rewards are given by spotlighting creativity and making the products more accessible to over 840 million China retail marketplaces users.
Jun-2020: Pinterest launched new features following which a person can tap on the camera in the search bar and snap or upload a photo to see the Shop tab with similar products. Every product found will link to the checkout page on the retailer’s site. It has enhanced the search results that appear when users snap a photo within the Lens camera search, to match similar suggestions and products to buy.
Jun-2020: Twitter introduced a new test feature called Fleets in India. It allows users to post messages that would disappear after 24 hours. Fleets do not have features such as likes, public replies, or retweets.
May-2020: Facebook introduced Facebook Shops, a new e-commerce feature. Facebook Shops allows businesses to easily list their products on Facebook and Instagram. It also allows businesses to sell products to customers through the chat features of WhatsApp, Messenger, and Instagram Direct and tag products during livestreams.
Mar-2020: Reddit introduced a new ad-unit called Trending Takeover. Customers can see the Trending Takeover ad unit in the second slot of the ‘Trending today’ tab on Reddit’s Popular feed.
Feb-2020: LinkedIn introduced a new feature, the ‘Featured’ section. This section enables the user to showcase their best work on your LinkedIn profile. Users can include their LinkedIn posts, articles published on LinkedIn, external links to their portfolio or blog, and shareable media like videos, images, etc. It also allows users to edit, delete, or reorder work samples.
Sep-2019: Pinterest introduced new shopping features. The features aimed to support traders who use inspiration as a magnet for sales. Pinterest announced the launch of an enhanced visual search tool, Lens that joined forces with the Product Pins to surface shoppable products or suggestions based on consumers’ snaps with the current price for an item and a direct link to the checkout on the retailer’s site.
Jun-2019: PayPal launched a new e-commerce platform. The new platform gives small businesses the same access to the online shopping infrastructure as tech giants like Facebook. It also brings together the existing parts of PayPal’s payments business by letting merchants accept money online and shoppers to check out through PayPal.
Jun-2019: Poshmark introduced the Home Market, an in-app marketplace. The Home Market helped customers to buy, sell and connect around home decor. Poshmark shoppers and sellers can buy, list and discover a broad selection of home decor products, in addition to the 75 million listings in apparel, shoes, and accessories already on the platform.
Feb-2019: Pinterest launched the discovery tool, which is designed for connecting people with products and ideas, as opposed to users with one another. It also enabled Pinterest’s engineering team to focus on more direct shopping and search experiences as opposed to regular engagement and interaction options.
Feb-2019 LinkedIn launched its Variation of Live-Streaming Called LinkedIn Live. This feature provided another option for video content on the platform. LinkedIn Live gives regular members and businesses additional, the immediate capacity to share from conferences, conduct Q&As, product announcements, and more.
Scope of the Study
Market Segments covered in the Report:
By Business Model
• Business to Consumer (B2C)
• Business to Business (B2B)
• Consumer to Consumer (C2C)
By Product Type
• Personal & Beauty Care
• Home Products
• Food & Beverages
• Health Supplements & Others
• North America
o Rest of North America
o Rest of Europe
• Asia Pacific
o South Korea
o Rest of Asia Pacific
o Saudi Arabia
o South Africa
o Rest of LAMEA
• PayPal Holdings, Inc. (eBay)
• Twitter, Inc.
• Microsoft Corporation (LinkedIn Corporation)
• Alibaba Group Holdings Limited (Taobao)
• Sina Corporation
• Pinterest, Inc.
• Etsy, Inc.
• Reddit, Inc. (Advance Publications, Inc.)
• Poshmark, Inc.
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