SOCIAL COMMERCE GLOBAL
By IFAB MEDIA - NEWS BUREAU - April 24, 2023 | 16 7 minutes read
The social commerce industry in Asia Pacific is expected to grow by 14.7 percent on annual basis to reach US$489327.6 million in 2023.
The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 10.6 percent during 2022-2028. The social commerce GMV in the region will increase from US$489327.6 million in 2023 to reach US$894795.4 million by 2028.
This report provides a detailed data centric analysis of social commerce industry, covering market opportunities and risks. With over 50+ KPIs at regional level, this report provides a comprehensive understanding of social commerce market dynamics, market size and forecast, and market share statistics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
The global pandemic outbreak has significantly changed consumer shopping behaviour in the Asia Pacific region. The rising adoption of digital services, including payments and shopping, has accelerated the growth of social commerce. Retailers, in increasing numbers, are leveraging the outbreak of social channels to forge new relationships with consumers and drive incremental revenue.
Inspired by Pinduoduo in China and Meesho in India, many social commerce startups are leveraging community and group-buying dynamics to build their presence in the segment. This has further driven the competitive landscape of the social commerce market in the Asia Pacific. With the industry expected to record strong growth over the next three to four years, the publisher expects an increasing venture capital and private equity funding to flow in the regional market.
More retailers are seeking to leverage social commerce capabilities to drive sales and growth
Amid the rising popularity of social buying among consumers in Southeast Asia, an increasing number of retailers are testing the space to better engage with their customers and drive growth. For instance- Samsung Electronics, one of the leading consumer electronic brands, launched a social commerce campaign, Model Homes, in Southeast Asia. As part of the campaign, the firm ran a pilot three-month program in Indonesia, Thailand, and Singapore. Under the social commerce program, the firm allowed consumers to shop for products through Samsung's Singapore Instagram store. The campaign was largely targeted toward millennials and Gen Z consumers, who are increasingly shopping through social channels across the Asia Pacific. From the short to medium-term perspective, the publisher expects more retailers, like Samsung, to launch pilot programs into social commerce to drive customer engagement and sales. This will further drive the competitive landscape of the social commerce industry in the Asia Pacific.
Social commerce startups are raising capital from venture capital and private equity firms to scale operations
The growth of the social commerce industry has been partly fuelled by innovative startups, which have made it simpler for individuals and businesses to drive sales through social channels. These startups have also attracted global venture capital and private equity funds, thereby driving multi-million-dollar investment into their business operations. In December 2022, SariSuki, the Philippines social commerce startup, announced that the firm had raised US$12.7 million in a capital round that was led by Kickstart Ventures. The community selling platform operates in the grocery segment and has also entered into the quick commerce space through the launch of a new service called Supah. The firm had recorded strong growth over the last 12 months, and through Supah it is taking the competition to market leaders such as Grab in the quick commerce space.
In September 2022, respond.io, the Malaysian social commerce startup, announced that the firm had raised US$7 million in its Series A round. The capital round was led by Headline and included participation from Calendula Ventures and AltalR Capital, among others. The firm makes it easier for brands, such as Roche, Abenson, Klook, and Yoho, to integrate the social messaging app with their customer relationship management, thereby allowing them to leverage social commerce capabilities to drive sales.
With these funding rounds, the firm is planning to further scale its operations in the domestic and global markets. For instance, respond.io plans to use the capital to further expand its presence in the Middle East market from the short to medium-term perspective.
WhatsApp is targeting opportunities in the Asia Pacific social commerce space through strategic alliances
WhatsApp is one of the leading messaging apps in the Asia Pacific region. Seeking to leverage its popularity in the region, WhatsApp is targeting opportunities in the commerce and payments-related space. To materialize its vision in the region, WhatsApp has already made inroads in the social commerce space through strategic investments across the Asia Pacific. For instance- In India, Meta, the parent firm of WhatsApp, invested Reliance in 2020. Earlier in 2022, the firm announced a strategic collaboration with Jio, owned by Reliance, to launch a grocery shopping service on the messaging app. The service will allow consumers to browse the product catalog on WhatsApp. With millions of active daily users on the instant messaging service, this strategic collaboration can drive significant revenue growth for both WhatsApp and Reliance.
In Singapore, the firm also invested in TakeApp, which allows retailers to build their online presence and take orders and run WhatsApp newsletter campaigns. Across the region, WhatsApp is expected to enter into more such strategic collaboration and rollout shopping services for consumers, thereby making bigger inroads in the growing social commerce space over the next three to four years.
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ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.