Trend Opportunity Profile—Social Commerce
Future Growth Potential in Gen Z as Next Wave of Consumers and in Disruptive Technologies Used to Power Persuasive Selling
16-Nov-2021
Global
Megatrends
New retail business models have emerged, and one crop is online-only businesses that sell exclusively through social media channels. Almost all social media platforms today offer retail functionalities that facilitate the electronic commerce (eCommerce) of goods and services. This online sales model is mainly driven by social influences and interactions between the users of various social media networks. Frost & Sullivan recognizes that demographic influence will play an increasingly important role in social commerce growth. In fact, 2 out of 3 gen Z consumers consider purchasing directly via social media. For instance, Facebook and Instagram are among the top 5 social media shops that generate nearly 26% of total transaction value potential globally.
Today, more than 50% of the global population is active on at least one social media platform, which brings new eCommerce opportunities to the massive global audience. Social media posts and product sharing help brands to increase customer engagement and traffic conversion. Social commerce will facilitate more and more conversion rates, with reviews, ratings, and increased click-through-rates leading to surges in site traffic. As such, small sellers and resellers will become major adopters of social commerce as they can easily access a huge volume of customers without investing in their own online eCommerce portal. Big brands are also using social platforms for advertising and boosting their customer reach.
This study offers a detailed view of the future scope of and market potential for social commerce. Mega Trends such as generational influence, growing internet and smartphone penetration, growth of direct selling, and evolving technology will contribute to the massive progression of social commerce. The study includes regional perspectives on social commerce, supported by case examples featuring popular social commerce platforms. Last, the research highlights future opportunities that will emerge to spur the growth of social selling.
Key Issues Addressed
- What is social commerce and what different business models do companies use for social selling?
- What is the scope and market potential for social commerce during the next decade?
- Which sectors will be highly impacted by the rapid growth of social commerce?
- What new innovations and functionalities will emerge in this space during the next decade?
- What are the key growth opportunities to watch out for in the next decade?
- What are the critical success factors that companies seeking to enter this space must know about?
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™
Our Mega Trend Universe—Overview
Growth Opportunities Fuel the Growth Pipeline Engine™
Our Mega Trend Universe—Digital Identity Impact
Key Findings
Growth Opportunities Critical to Future Success
Trend Opportunity Overview
Social Commerce—New Trends
Trend Opportunity—Regional Exposure
Regional Social Commerce Case Example—China, Pinduoduo
Regional Social Media Case Example—India, Meesho
Regional Social Media Case Example—Southeast Asia, LINE
Growth of Social Commerce through Social Media
Trend Opportunity—Industry Implications
Trend Opportunity—B2B Implications
Key Trend Opportunity Levers
Trend Opportunity Attractiveness Analysis
Trend Opportunity Attractiveness Analysis (continued)
Trend Opportunity Proof Cases
Trend Opportunity Impact and Certainty Analysis
Trend Impact Analysis
Trend Opportunity Matrix—Trend Innovation Index
Innovation Attractiveness Score
Trend Opportunity Matrix—Trend Growth Index
Growth Attractiveness Score
Trend Beets* Implications
Growth Opportunity 1—Flexible Payment System to Offer More Secure and Flexible Social Commerce Transactions
Growth Flexible Payment System to Offer More Secure and Flexible Social Commerce Transactions (continued)
Growth Opportunity 2—Immersive Reality Social PlatformsOffering Both Online and In-store Shopping Experiences
Growth Immersive Reality Social PlatformsOffering Both Online and In-store Shopping Experiences (continued)
Growth Opportunity 3—Psychological Data Analytics for Customer Retention in Social Commerce
Growth Psychological Data Analytics for Customer Retention in Social Commerce (Continued)
Critical Success Factors for Growth
Conclusion—The Way Forward
Identifying Your Company’s Growth Zone
Your Next Steps
List of Exhibits
Legal Disclaimer
Our Mega Trend Universe
Our Mega Trend Universe (continued)
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Key Issues Addressed
- What is social commerce and what different business models do companies use for social selling
- What is the scope and market potential for social commerce during the next decade
- Which sectors will be highly impacted by the rapid growth of social commerce
- What new innovations and functionalities will emerge in this space during the next decade
- What are the key growth opportunities to watch out for in the next decade
- What are the critical success factors that companies seeking to enter this space must know about
Deliverable Type | Megatrends |
---|---|
No Index | No |
Podcast | No |
Predecessor | NA |
Author | Malabika Mandal |
Industries | Cross Industries |
WIP Number | K668-01-00-00-00 |
Keyword 1 | Social Commerce |
Keyword 2 | Trend Opportunity Profile |
Keyword 3 | Mega Trends |
Is Prebook | No |
GPS Codes | 9A3B |