According to a recent analysis, shopping on social media platforms is expected to reach $1.2 trillion globally by 2025, driven by Gen Z and millennial users. The fastest increase will be observed in developing economies like India and Brazil. China will continue to be the most developed market in terms of size and maturity in the social commerce arena, accounting for 17% of global e-commerce spending by 2025. A survey conducted by Accenture reveals a whopping 80% of social media users in India utilize social commerce to make purchases. In comparison to users in the United States and the United Kingdom, Indian users are more than twice as likely to sell on social networking networks. By 2025, Gen Z and millennial social media users will account for 62% of all social commerce spending worldwide. Millennials alone are expected to spend approximately $401 billion on social commerce by 2025. „The rise of new hyperlocal social business stages,“ believed Anurag Gupta, Managing Director, Accenture in India, during a genuine conversation with correspondents.
„However, most social media users are put off by suspicion and express concern over refund or security when it comes to social commerce transactions,“ the report states. The majority of the social purchasers polled (59%) indicated they are more inclined to support small and medium-sized businesses through social commerce than when purchasing on ecommerce platforms. Furthermore, 63% said they are more likely to buy from the same seller again, proving the usefulness of social commerce in cultivating loyalty and driving repeat transactions.
„However, majority of social media users are deterred by suspicion and express stress that social commerce transactions would not be effectively refunded or safeguarded, making trust the most significant hurdle to adoption, as it was for e-commerce at its inception,“ according to the paper.
Clothing, consumer electronics, and home décor will likely see the most social commerce sales by 2025. Coupons & Promo Codes are likely to act as a catalyst, which will boost sales by leaps and bounds.
According to a joint study conducted by MMA India and the media agency GroupM, India’s Internet user base will reach 900 million by 2025, up from 622 million now, resulting in a multifold rise in online commerce. According to the survey, India will have 500 million buyers by 2030. Under-penetrated areas, including food, education, and health, are expected to push the online retail business to nearly thrice over the next four to five years. Sixty percent of the $50-60 billion online retail sector comprises items, while services balance is made up.
According to Tushar Vyas, president of GroupM South Asia, consumers today have many discovery and information research sources made up of highly linked non-linear moments. „The recent surge witnessed in the number of those using the internet, lower data rates, the usage of coupon and discount codes, and changing customer behavior are all factors driving the expansion of e-commerce in India.“
According to the survey, internet retail is transitioning from gadgets to groceries. It went on to say that 73% of customers have purchased items from online shopping platforms in the previous year. Product quality (63 percent), pricing and product information return and cancellation policies, and product warranty are among the decisive considerations (55 percent ). The rise in popularity of the direct-to-consumer (DTC) model is the most significant retail trend. Brands with a DTC strategy may exploit direct relationships through loyalty programs, exclusive coupon codes, discounts and promotions, and unique and category-specific shopping experiences.
The data also revealed that urban internet users rely on online platforms for product research, with 62 percent of urban users conducting product research online before making any online or offline purchase. Online product research accounts for around half of all offline purchases across all categories. Conversational commerce, voice search, video streaming, augmented reality (AR), and virtual reality (VR), according to the research, will all boost firms in their e-commerce initiatives. Not only on Google Assistant, but throughout Search and YouTube, voice is increasingly becoming the primary input channel. Even though the voice is still evolving, Indians are outpacing the rest of the world regarding voice usage, with the market anticipated to expand by 40% by 2022.
Compared to other media channels, online video spending is expected to expand at the fastest rate of 46 percent in 2020. From January 2020 to January 2021, online content consumption increased by 35%, with a total increase of 13% in time spent on over-the-top (OTT) material.
Voice is a more natural method for vernacular internet users to connect with technology, which reduces friction. After English, Hindi is the second most important language on voice assistants worldwide. „Consistent digital exposure, along with the existence of numerous omnichannel touchpoints, has resulted in the emergence of a new consumer purchase process,“ said Moneka Khurana, board member, and country head at MMA.
