Saudi Arabia Social Commerce Market Intelligence Report 2022-2028: Social Networking Platforms are Partnering with e-Commerce Providers to Further Penetrate into the Market
DUBLIN, May 23, 2022 /PRNewswire/ -- The "Saudi Arabia Social Commerce Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
Social commerce industry in Saudi Arabia is expected to grow by 64.9% on annual basis to reach US$1,216.8 million in 2022.
The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 55.6% during 2022-2028. The social commerce GMV in the country will increase from US$1,216.8 million in 2022 to reach US$16,293.7 million by 2028.
In Saudi Arabia, social media platforms are playing a decisive role in transforming society. Over the last four to eight quarters, social media in Saudi Arabia has become a powerhouse because of the growing number of social media users in the country. The global increase in social media amounts to 9.2% yearly, and the Kingdom is leading the race among other nations with significant annual growth of 8.7%.
With the smartphone and internet penetration rate growing significantly in the country, consumers are spending more of their time on social media platforms, and their association with such platforms is also growing in prominence. Due to this shift in consumer behavior, which has been partly driven by the global pandemic, retailers in the Kingdom are focusing more on online offerings and seamless shopping experiences for their customers in the country.
Among the various strategies opted by retailers to reach social buyers on social media platforms, some of the more common ones include asking consumers to vote for their favored products, sharing Reels and TikTok videos, offering personalized product recommendations, and in-app shopping.
Along with brands, social media platforms are also boosting their investment in the social commerce space to gain growing market share in the region. Over the next few quarters, the publisher expects the competition in the social commerce market to further intensify with the presence of innovative regional and global startups.
Social networking platforms are partnering with e-commerce providers to further penetrate into the Saudi social commerce market
In the midst of the growing popularity of shopping from social apps among consumers in Saudi Arabia, social media platforms are entering into strategic partnerships with e-commerce providers to further penetrate their presence in the industry and gain growing market share.
- In August 2021, TikTok, the short video platform, announced that it had entered into a strategic alliance with Shopify, the e-commerce enabler for small and medium-sized businesses. Under the strategic partnership with TikTok, Shopify merchants will be able to create shoppable video ads, which will help them in driving more consumers to their online stores.
- The strategic partnership with TikTok will also allow merchants to access the Business Ads Manager through the Shopify dashboard. This will make it easier for merchants to delve deeper into the social commerce space, thereby allowing them to gain a greater advantage of the growing trend of social commerce shopping among consumers in Saudi Arabia.
Regional social commerce startups are expanding their presence in Saudi Arabia
The social commerce market is evolving very rapidly in the Middle East, with several startups in the sector driving its growth. As the shopping method continues to grow in prominence among consumers, these startups are expanding rapidly to gain further market share in the region.
- Dubai-based social commerce startup, Zbooni also has its presence in Saudi Arabia, where it provides brands and retailers with tools to address the growing demand for social commerce. Notably, the firm has an office in Saudi Arabia, where it is witnessing increasing demand for its seller app and web-based tools. In February 2022, the firm also announced that it had launched its product for businesses and retailers in Egypt as it looks to further penetrate and grow its market share in the social commerce space.
The presence of these global and regional social commerce firms in Saudi Arabia is expected to further intensify competition over the next four to eight quarters in the Kingdom. This will keep supporting the growth of the overall market from the short to medium-term perspective in the country.
Trademarks Law prohibits the selling of fake products on social media platforms in Saudi Arabia
In Saudi Arabia, the Trademarks Law prohibits anyone from displaying or selling products carrying a fake trademark. For violators, the Ministry of Commerce has announced punishment with imprisonment for a period of up to one year and a fine of SAR 1 million, or either of these.
In February 2022, the Ministry of Commerce arrested an individual after he was caught selling counterfeit brands on Snapchat. Moreover, the individual was selling fake women products on a famous account on Snapchat.
Apart from imprisonment and monetary penalty, anyone found violating the law is also subjected to defaming in the mass media and blocking on social media platforms in the country.
Scope
Saudi Arabia Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Saudi Arabia Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Saudi Arabia Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2019-2028
- Clothing & Footwear
- Beauty and Personal Care
- Food & Grocery
- Appliances and Electronics
- Home Improvement
- Others
Saudi Arabia Social Commerce Industry Market Size and Forecast by End Use Segment, 2019-2028
- B2B
- B2C
- C2C
Saudi Arabia Social Commerce Industry Market Size and Forecast by End Use Device, 2019-2028
- Mobile
- Desktop
Saudi Arabia Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Domestic
- Cross Border
Saudi Arabia Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Tier-1 Cities
- Tier-2 Cities
- Tier-3 Cities
Saudi Arabia Social Commerce Industry Market Size and Forecast by Payment Method, 2019-2028
- Credit Card
- Debit Card
- Bank Transfer
- Prepaid Card
- Digital & Mobile Wallet
- Other Digital Payment
- Cash
Saudi Arabia Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour, 2021
- By Age
- By Income Level
- By Gender
Reasons to buy
- In-depth Understanding of Social Commerce Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028).
- Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
- Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate social commerce strategy; assess market specific key trends, drivers, and risks in the industry.
For more information about this report visit https://www.researchandmarkets.com/r/2uzvn6
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SOURCE Research and Markets
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