Asia Pacific Social Commerce Market Intelligence Report 2022: Social Media Platforms are Adding New Features to Take Advantage of the Growing Social Commerce Market

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May 10, 2022, 15:45 ET

DUBLIN, May 10, 2022 /PRNewswire/ -- The "Asia Pacific 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 Asia Pacific is expected to grow by 38.2% on annual basis to reach US$423,136.5 million in 2022.

The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 34.4% during 2022-2028. The social commerce GMV in the country will increase from US$4,23,136.5 million in 2022 to reach US$24,29,266.2 million by 2028.

The increasing digital boom, backed by higher internet and smartphone penetration, is aiding the growth of social commerce in the Asia Pacific region. Countries like China, India, Singapore, and Indonesia have recorded significant investments in this sector in the last two years.

Moreover, with the rising popularity of social commerce, many startups are entering this market with innovative product offerings. However, the market is relatively concentrated, with WeChat in China and Facebook or Meesho in India holding the majority of the market share.

The social commerce market in India has already started witnessing an inflow of investment from various venture capital (VCs) funds, private equity (PE) as well individual investors. Unlike e-commerce which is characterized by the dominance of a few large players, the social commerce market has already seen a dozen of start-ups coming up every year.

Many big brands and names such as Myntra have also entered the social commerce market in India, trying to tap the capitalize of this new trend of buying through social media platforms. Overall, the market is still in the nascent stage in India and will reshape the market dimensions in the next two to three years.

Social media platforms are adding new features to take advantage of the growing social commerce market

To gain a competitive edge in the social commerce space, customer-centricity and innovation are becoming survival skills for businesses. As more and more start-ups enter the market trying to disrupt the market with new ideas, existing players also need to be creative and innovate to introduce new features to differentiate themselves. With the growing popularity of social commerce, social media platforms are also adding new features to make it easier for sellers as well buyers to interact.

In 2020, the Facebook family which includes Instagram along with Pinterest revamped their platforms and added new tools to aid social commerce. These tools will help sellers to streamline the customer's shopping experiences, especially during the pandemic. These features also allow retailers to create new storefronts and viewing and the number of users visiting it can be increased through paid advertising.
Similarly, the largest messaging service WhatsApp is also tipping its toes in the social commerce market by introducing a new feature called Business Profile which allows users to find shops from a directory within the app. This feature was being tested in Brazil in September 2021 and is expected to be launched in India in 2022.

The new-age social commerce startups in Indonesia are looking to leverage this existing foundation to penetrate and gain market share in the growing social commerce industry. Notably, most of the social commerce startups in the country have adopted a reseller model, wherein the platform acquires agents, who in turn sell their products on various social networks.

While startups in the social commerce space are supporting the growth of the industry, big technology giants, including social media platforms, are also boosting their investment in the space to gain a larger piece of the growing market.

Social commerce startups are raising funding rounds to further scale operations in Indonesia

With the social commerce industry growing at a rapid rate, startups are raising big funding rounds to support their growth and to further scale operations across countries.

In February 2022, Grupin, an Indonesia-based social commerce platform, announced that the firm had raised US$3 million in a funding round which was led by Sequoia Capital. Notably, the firm also provides a community-based shopping experience and bulk shopping discounts for its consumers in Indonesia. Since its launch in August 2021, the firm has sold hundreds of shop-keeping units, including fresh produce, packaged foods, kitchen utensils, baby products, and electronics. During the same period, the firm has experienced user growth of 400 times.
Kitabeli, another social commerce startup in Indonesia, announced that the firm had raised investment in an extended Series A round in September 2021. The extended investment comes after the firm raised US$10 million in its Series A round, which was led by Go Ventures. Notably, the firm is planning to use the investment to further scale its operations in Indonesia. Founded in 2020, the firm provides consumers with a platform to purchase daily items, including cosmetics, fresh fruits, and home and technology products, among others.

Live-streaming helping social commerce to gain momentum in Singapore

Though the livestreaming phenomenon started with the Chinese market, it saw high adoption across different countries in the Asia Pacific region. Live streaming sessions are considered to be highly interactive and help in engaging the customer for a long time, increasing the conversion rate. Moreover, pandemic led the stores and companies to shut down, consequently turning 'livestreaming' into the only option for 'human-to-human' interaction while shopping. Therefore, brands and businesses are boosting sales by providing a combination of digital and physical retail experiences through livestreams.

Live commerce became increasingly popular in Singapore with Facebook Live, Instagram Live, and YouTube Live and gained popularity among the millennials. For instance, @Rentadella is a Singaporean local fashion brand that sells its products through an IG LIVE sale every Tuesday night through an auction format for clothes, and it is considered a smart and effective strategy to drive high engagement from followers. Therefore, the publisher expects more brands and businesses to engage in livestreaming to drive revenue over the next four to six quarters in the country.

The rise of the social commerce industry in the Philippines is parallel to the growth of the market in Southeast Asia. Being one of the youngest communities globally, Southeast Asia is expected to remain one of the largest markets for social commerce over the next four to eight quarters. According to the analysis, social commerce accounted for more than 45% of the Southeast Asian e-commerce market in 2021 alone and is expected to have increased further in 2022.

Social commerce startups are adopting different business expansion strategies to expand their market in the Philippines

Social commerce firm Pinduoduo has achieved substantial success in China over the last four to eight quarters. Notably, startups around the globe are looking to recreate the success of Pinduoduo in their own region. Similar trends are visible in the Philippines, wherein the social commerce startups are seeking to recreate the success of Pinduoduo in Southeast Asia.

Resellee, a social commerce startup in the Philippines, partners with individual sellers and manufacturers, and farmers in the country. The platform connects resellers with manufacturers and farmers, thereby allowing resellers to choose the product they want to add to their stores and market them to potential buyers through the use of different social media platforms.
Notably, the social commerce platforms offer products across different categories, including fashion and electronics. However, its major focus is on groceries. During the global pandemic outbreak, the firm partnered with the government and farmers to meet the growing demand. In November 2020, the firm also raised US$1 million in its seed funding round from Hofan Capital and Mintech Enterprises.

Scope

Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028

Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028

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

Social Commerce Industry Market Size and Forecast by End Use Segment, 2019-2028

Social Commerce Industry Market Size and Forecast by End Use Device, 2019-2028

Mobile
Desktop

Social Commerce Industry Market Size and Forecast by Location, 2019-2028

Domestic
Cross Border

Social Commerce Industry Market Size and Forecast by Location, 2019-2028

Tier-1 Cities
Tier-2 Cities
Tier-3 Cities

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

For more information about this report visit https://www.researchandmarkets.com/r/wrkgad

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