The High Smartphone Adoption Rate Is Driving Social Commerce
The social commerce market is projected to grow by $2900.3 billion in 2030, a CAGR of 31.6%. The trend is fuelled by the substantial increases in the adoption of 4G smartphones, an extension of the 4G network rollout, and the rise in the number of people accessing online multimedia content through mobile devices.
The apparel segment dominated the global social commerce market and was accountable for the largest market share since 2020.
During the COVID-19 pandemic, when consumers were shopping and spending the most time online, fashion retailers developed new types of purchase experiences, engaged influencers/creators, and interacted with customers.
Social commerce also exploded in the past few years due to converging capabilities for content sharing, buying, payments, and communications. On the other hand, a high level of impulse buying among millennials and the young generation, along with easy access to social media sites, has given companies and sellers the opportunity to boost sales and gain new customers.
Social commerce has also enabled brands and merchants to improve their social media presence, and it is now possible to build brand recognition and engage customers on a daily basis.
The Asia Pacific is projected to dominate the global social commerce market by 2030, as a result of increased investment in communications infrastructure, the expansion of smartphone capabilities, wider availability of the internet, and the increasingly widespread use of social media sites such as Facebook, Instagram, and Twitter contributing to the region’s growth.
In North America, the global social commerce market is also projected to grow over the forecast period, although fragmented, due to differences in customer attitudes and behavior regarding social media usage, digital purchases, payments, and online privacy.
