Facebook, TikTok, WeChat… Social media purchases will grow three times faster than sales on traditional channels within three years, according to a study published by Accenture. with more than 10,000 users in China, India, Brazil, the United States and the United Kingdom.
Social trade (purchasing a product or service through a social network) will reach $ 1.2 trillion by 2025, up from $ 492 billion in 2021, according to the consulting firm in the study. The trend is driven by the Covid crisis, largely supported by Generation Z consumers and millennials, who should account for 62% of consumption.
According to the study, 64% of social media users surveyed said they made at least one purchase through this channel during the year, which would represent two billion customers for the markets covered by the survey.
The best-selling products on these channels are clothing, consumer electronics and decorative items. Beauty and cosmetics are also popular, thanks to the power of prescribing influences.
Two and a half hours a day
Accenture points out that while the market is huge for large, well-established companies, individuals and small brands can also enjoy a big piece of the pie. More than half of these customers said they were likely to support small businesses over large retailers and repeat purchases. Enough to enable new brands to reduce the barrier to entering online sales and retain their customers.
The consulting firm also found that about 3.5 billion people surfed social media last year, spending an average of two and a half hours a day on them. The social commerce market is much less saturated in the US and the UK than in China, where 80% of social media users already shop there, according to Accenture. The Middle Kingdom should remain the first in size and maturity, while the highest growth was recorded in India and Brazil.
Developing countries are increasingly important markets for “social trade” because their populations are young and have sometimes skipped distribution steps. Thus, in China, almost half of consumer products will be sold online and on smartphones tomorrow. This weight of digital mechanically benefits social networks.
Social media traffic is growing as networks encourage this feature. In 2018, Instagram launched its “shopping” function. TikTok has been testing the “Buy Now” button since 2020. In the same year, reminds the magazine “Strategies”, Facebook launched Facebook Shops in France, which allows brands to open a store on Facebook and Instagram.
According to Accenture, “social commerce” continues to face obstacles, the same as those e-commerce knows: fears about transaction security, product quality, and dissatisfaction with customer service when it comes to replacement and refunds. especially.
The phenomenon is also spreading to stores from B to B. According to the social sales barometer La Poste Solutions Business and digital agency Intuiti, 37.4% of business decision makers have already made a purchase after reading content published on such networks. . Not surprisingly, LinkedIn is the most used in this category.