The social media shopping market is booming in India
Driven by Gen Z and Gen Y users, purchases on social media platforms are expected to reach $ 1.2 trillion globally by 2025, with the highest growth seen in developing markets such as India and Brazil, according to a new report released on Tuesday.
China will remain the most advanced market in both size and maturity in the social commerce space, which will account for 17% of all e-commerce spending by 2025.
Currently, nearly eight in 10 social media users in India use social commerce to make purchases, according to the Accenture report.
“Although it is a mature market, almost half of Indian consumers make more impulse purchases than planned purchases,” the results showed.
Indian users are more than twice as likely to sell on social platforms as users in the US and UK.
“Buyers in China, India and Brazil care more about features that help them discover and assess potential purchases – two areas where social features enhance the existing experience,” the report said.
Gen Z and millennial social media users will account for 62% of global social commerce spending by 2025.
Millennials alone will account for nearly $ 401 billion in social commerce spending by 2025.
“Driven by the preferences of mobile-first consumers and the launch of new hyper-local social commerce platforms, the emerging success of social commerce in India is a testament to the power of people and communities,” said Anurag Gupta, Managing Director and Head of Strategy and Consulting, Accenture in India.
“To take advantage of this growing opportunity, it will be crucial that these social commerce platforms provide consumers with the right experience built around trust and satisfaction, and broaden their appeal through the use of local languages and video interfaces.” , Gupta explained.
More than half (59%) of social shoppers surveyed said they were more likely to support small and medium businesses through social commerce than when shopping on e-commerce websites.
Additionally, 63% said they were more likely to buy from the same seller again, showing the benefits of social commerce in building loyalty and encouraging repeat purchases.
However, half of the social media users surveyed indicate that they are concerned that social commerce purchases may not be protected or reimbursed properly, making trust the biggest barrier to adoption, as was the case with e-commerce in its infancy, ”the report notes.
By 2025, the largest number of social commerce purchases globally is expected in clothing, consumer electronics, and home decor.
Fresh foods and snacks are also a large product category (13%), although sales are almost exclusive to China.
“Beauty and personal care, while smaller in terms of total social commerce sales, is expected to quickly gain traction in e-commerce and capture over 40% of digital spend on average for this category in key markets of here 2025, ”said Accenture. report.
* Edited from an IANS report