The Growth of Social Commerce in Southeast Asia
In Southeast Asia, while e-marketplaces are still the preferred shopping channel, consumers have started to flock to social commerce sites, contributing 21% to online purchases In 2021.
In Southeast Asia, while e-marketplaces are still the preferred shopping channel, consumers have started to flock to social commerce sites, contributing 21% to online purchases In 2021.
The translates to a 102% rise in orders on social commerce, a 91% rise in Gross Merchandise Value and 88% rise in average revenue per order, according to an IKala report.
The fast growth of social commerce in Southeast Asia is due to three main factors, the first being the rising adoption of social media. Prolonged quarantines at the height of Covid-19 pandemic saw consumers turn to social media to stay connected, informed, and entertained.
Another factor is the increasing demand for one-stop-shop platforms. Consumers are on the lookout for platforms that offer discovery and purchase seamlessly in one place.
Finally, social commerce offers consumers direct communication with brands and merchants. This has enabled sellers to build trust and provide better customer service.
According to data from GWI, social shoppers in Southeast Asia constitute about 64.2 million people, 55% of whom are female and over 60% below 34 years old. More than 40% are married and employed full-time.
The report also revealed that social shoppers in the region extensively research products online prior to purchase, using social media, search engines and consumer reviews. Free delivery (76%) and discounts (67%) are their main purchase drivers, and messaging focused on these perks grabs their attention.
In terms of preferred social channels, the surveyed consumers frequent Facebook (94%) and Instagram (86%), and are interested in entertainment from YouTube, Netflix, and Spotify.
A separate report by Facebook and Bain & Company revealed that although social commerce spend across categories is evenly split, the purchase drivers vary.
For clothing, beauty & household furnishings, the key purchase drivers included fun shopping experiences, community connection, customization, and product variety. For electronics, the drivers are product price, non-branded goods, and new products showcased by influencers. For groceries, shoppers were encouraged by convenience, niche products, and trust with neighbors and local stores.
In Southeast Asia, while e-marketplaces are still the preferred shopping channel, consumers have started to flock to social commerce sites, contributing 21% to online purchases In 2021.
The translates to a 102% rise in orders on social commerce, a 91% rise in Gross Merchandise Value and 88% rise in average revenue per order, according to an IKala report.
The fast growth of social commerce in Southeast Asia is due to three main factors, the first being the rising adoption of social media. Prolonged quarantines at the height of Covid-19 pandemic saw consumers turn to social media to stay connected, informed, and entertained.
Another factor is the increasing demand for one-stop-shop platforms. Consumers are on the lookout for platforms that offer discovery and purchase seamlessly in one place.
Finally, social commerce offers consumers direct communication with brands and merchants. This has enabled sellers to build trust and provide better customer service.
According to data from GWI, social shoppers in Southeast Asia constitute about 64.2 million people, 55% of whom are female and over 60% below 34 years old. More than 40% are married and employed full-time.
The report also revealed that social shoppers in the region extensively research products online prior to purchase, using social media, search engines and consumer reviews. Free delivery (76%) and discounts (67%) are their main purchase drivers, and messaging focused on these perks grabs their attention.
In terms of preferred social channels, the surveyed consumers frequent Facebook (94%) and Instagram (86%), and are interested in entertainment from YouTube, Netflix, and Spotify.
A separate report by Facebook and Bain & Company revealed that although social commerce spend across categories is evenly split, the purchase drivers vary.
For clothing, beauty & household furnishings, the key purchase drivers included fun shopping experiences, community connection, customization, and product variety. For electronics, the drivers are product price, non-branded goods, and new products showcased by influencers. For groceries, shoppers were encouraged by convenience, niche products, and trust with neighbors and local stores.
