Social commerce helps new brands build loyalty and gain strength.
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January 08, 2022 – 02 :06 PM m.
2022-01-08
2022-01-08
The purchases on social networks such as Facebook, TikTok and WeChat will grow three times faster than sales of traditional channels for the next three years, according to a study published by Accenture.
The social commerce, defined as transactions that are carried out entirely within the context of a social media platform, will reach $1.2 trillion by 2025, which contrasts with the 492,000 million in 2021, the consultant indicated in the report.
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The trend is being driven primarily by Gen Z and millennial consumers, who are expected to account for 62 % of spending.
Among the most popular products sold through social media is clothing, consumer electronics and home decor.
The segment of bbeauty and personal care is also experiencing growth and online influencers play a crucial role.
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Trend will benefit small entrepreneurs: More than half of so-called social shoppers surveyed said they are more likely to support p small businesses than larger retailers and would probably buy from them again.
This could allow new brands to build loyalty and gain strength.
Accenture also revealed that around 3.5 billion people used social media in 2021, with an average of two and a half hours a day of navigation in them.
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The social commerce market is much less saturated in United States and the United Kingdom than in China, where 80% of social media users make social commerce purchases, according to Accenture.
China is expected to remain the most advanced market for social commerce in terms of size and maturity, Accenture noted, and the higher growth is registered in developing markets such as India and Brazil.
The report is based on an online study of 10,053 users of social networks in China, India, Brazil, US and UK conducted between August 12 and September 3, 2021.
In-depth interviews were also conducted in those markets over the past year.
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