Trend Opportunity Profile—Social Commerce

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

RELEASE DATE
16-Nov-2021
REGION
Global
Deliverable Type
Megatrends
Research Code: K668-01-00-00-00
SKU: CI00783-GL-MT_25944
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Description

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?

Table of Contents

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)

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.--BEGIN PROMO--

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
More Information
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