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Social commerce market set to grow by more than double to $1.2 trillion by 2025

The estimated revenue will account for 16.7% of the $7 trillion worth of e-commerce spending by 2025, the study said.Premium
The estimated revenue will account for 16.7% of the $7 trillion worth of e-commerce spending by 2025, the study said.

Anurag Gupta, managing director and lead-strategy and consulting at Accenture in India, said the emerging success of social commerce in India is testimony to the power of mobile-first consumer preferences and the launch of new hyperlocal social commerce platforms

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NEW DELHI : The social commerce market is set to more than double to $1.2 trillion over the next three years from the current $492 billion, a new study by consulting firm Accenture said.

The estimated $1.2 trillion revenue will account for 16.7% of the $7 trillion worth of e-commerce spending by 2025, the study said.

The study, which covered 10,000 users from India, China, Brazil, the US, and the UK, added that while China will remain the largest market for social commerce, India and Brazil have registered the highest growth. “In these markets, social commerce has the potential to leapfrog e-commerce as new business models allow for greater participation in digital commerce across all spectrums of society," the report noted.

Anurag Gupta, managing director and lead-strategy and consulting at Accenture in India, said the emerging success of social commerce in India is driven by mobile-first consumer preferences and the launch of new hyperlocal social commerce platforms.

Gupta said that brands would need to work with a “thriving ecosystem", including platforms, creators, influencers, and resellers who help users discover potential purchases. According to him, social commerce platforms will have to offer consumers the “right experiences built around trust and satisfaction" and “broaden their appeal" by including video interfaces and local languages".

This strategy is in line with moves made by platforms such as InMobi-owned Glance and Roposo and other short-video apps such as Moj and Bolo Live (formerly Bolo Indya). Roposo pivoted to a live commerce model in October, shifting focus from the short-video market. E-commerce platform Flipkart also partnered with Moj to introduce commerce through videos in the same month. In September, social commerce startup Meesho neared a $5 billion valuation with a $570 million fundraising.

To be sure, Accenture also noted that social buyers are more likely to support small businesses than large brands. For example, over 59% of the surveyed users said they could buy from small businesses through social commerce, and 63% said they are more likely to make repeat purchases from the same seller.

That said, there are advantages to traditional e-commerce too. “Half of social media users surveyed, however, indicate they are concerned that social commerce purchases will not be protected or refunded properly, making trust the biggest barrier to adoption, as it was for e-commerce at its beginning," the report said.

Clothing, consumer electronics and fresh food and snacks were the most common social commerce purchases. The report, however, noted that these purchases were “nearly exclusive" to China.

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