Market Trends of Social Commerce Industry
Growing demand for business-to-consumer (B2C) social commerce is driving the market growth
The business-to-consumer (B2C) segment dominates the social commerce market because of its sizeable customer base, chances for consumer involvement, social media recommendations, powerful purchasing habits, smooth mobile experience, and capacity for building direct client relationships.
Lately, there has been a growing demand for social networking platforms for direct e-commerce transactions with customers. Social networking sites have become practical tools for businesses to promote their brands and make money. Consumers' increased use of social media platforms has enabled companies to reach a large audience. Social media sites like Facebook, Instagram, Pinterest, TikTok, and others have millions, if not billions, of active users, making them attractive B2C markets. Customers want immediate assistance, and with mobile technology developing rapidly, they are searching for new ways to interact with brands through digital platforms. With more than 60% of purchases completed through social media platforms, younger generations, such as millennials and Gen Z, are prevailing in social commerce.
Owing to its large population, digital payments, and influential social media platforms Asia-Pacific leads the market
The expansion of Asia-Pacific has been fueled by increased disposable income, a huge youth population, and improved network connectivity. The expansion of social media platforms beyond Facebook, TikTok, WeChat, and Youtube, as well as the widespread use of mobile devices, have all helped to fuel the rise of the social commerce industry in this area.
Due to a sizable population that uses social media platforms to make purchases, China has the largest social commerce market in the world. Through their social media platforms, major technology companies like Tencent Holdings Ltd and PDD Holdings Inc. have captivated a sizable portion of the population in China and Southeast Asia. Overall, with many consumers and businesses adopting social media for commerce, the region is expecting growth in the forecast period.
