Global Social Commerce Market to Reach $604.5 Billion in 2027

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The growth in online shopping has led to the acceleration of alternative shopping habits like social commerce. Growing at a 31.4% compound annual growth rate (CAGR) between 2020 and 2027, the global social commerce market is estimated to grow to $604.5 billion by 2027.

A good number of eCommerce companies are either already selling or planning to sell via social media. According to the research data analyzed and published by Stock Apps, 15% of these companies worldwide are already selling on social media while 25% are planning to start.

Global Social Commerce Market to Reach $604.5 Billion in 2027 Brandspurng

On the other hand, China’s social commerce market is estimated to grow at a 30.5% CAGR over the period of the analysis. According to eMarketer, the country is estimated to have 357.2 million social buyers by the end of 2020. That would be equivalent to 30.6% of the total population.

In 2021, the figure will rise to 392.2 million, 420 million in 2022 and 446.8 million by 2023. At the end of the forecast period, China is set to account for 37.9% of social buyers worldwide. Based on data from Statista, the number of social commerce users could be even higher as its 2020 estimate is 713 million.

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Global Social Commerce Market to Reach $604.5 Billion in 2027

eMarketer projects that retail social commerce sales will reach $242.41 billion in China in 2020. The sector is expected to account for 11.6% of total retail eCommerce sales in the country this year. By 2023, the figure is estimated to almost double to $474.81 billion.

US Social Commerce to Generate $23 Billion in 2020

China has been far ahead of the US in social commerce. In 2019, eMarketer reported $186.04 billion as the sector’s total sales. That was close to ten times the US total of $19.42 billion.

Tencent’s WeChat has been at the forefront of the trend, particularly since 2017 when it launched Mini Programs. Since that time, major online retailers create Mini Programs to make direct sales within the app.

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According to its 2019 annual report, Tencent announced that it generated over $115 billion in total transaction volume from its Mini Programs.

In the US, the sector is projected to be worth $26.9 billion in 2020 according to Research and Markets. The eMarketer projection is slightly less optimistic, projecting sales worth $23.26 billion by the end of 2020. It estimates that the figure will rise to $31.35 billion in 2021, $38.22 billion in 2022 and by 2023, it will reach $45.63 billion.

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Statista projects that by 2024, the figure could be as high as $84.2 billion, accounting for 7.8% of retail eCommerce sales in the US.

Douyin Creators to Generate $11.8 Billion in 2021

In view of the success of the trend in China, top-ranking US companies like Walmart and Facebook seem to be taking cues.

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In August 2020, Walmart announced its intention to buy a 7.5% stake in TikTok. According to its CEO, the move is based on the fact that it sees a huge business opportunity in social media.

A look at how Douyin, the Chinese version of TikTok, embraced social commerce provides handy insights. In 2018, Douyin partnered with Alibaba introducing a shopping feature on the app and has refined its offering to include product search features and native storefronts.

As of August 2020, Douyin had 600 million daily active users and was the country’s most popular platform for shoppable videos. At the time, the app had more than 22 million creators, who made over $6.15 billion over the trailing 12-month period.

In 2021, Douyin announced that it would invest traffic resources worth $1.5 billion so as to generate $11.8 billion in income for creators. The competition is, however, rather stiff as its main rival, Kuaishou, announced a total of 500 million eCommerce orders in August 2020. Daily active users on this app numbered around 300 million at the time.

Moreover, Facebook introduced a live shopping experience similar to Taobao Live on Facebook Shop. This is a dedicated section for eCommerce within the app, allowing businesses to go live and feature their products.

It is worth noting that during the pandemic, Taobao Live saw impressive growth. In February 2020, the number of streaming events on the platform increased by a whopping 110% according to Caixin. During the first quarter of 2020, the platform posted a sales increase of 88% year-over-year (YoY).

From September 2019 to September 2020, Taobao Live GMV surpassed $53.2 billion according to China Internet Watch.

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Global Social Commerce Market to Reach $604.5 Billion in 2027 - Brand SpurGlobal Social Commerce Market to Reach $604.5 Billion in 2027 - Brand Spur

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Global Social Commerce Market to Reach $604.5 Billion in 2027 - Brand SpurGlobal Social Commerce Market to Reach $604.5 Billion in 2027 - Brand Spur

Latest News

Vivocom’s Group Game Changer – Multi-Billion Sand Project Secured

  • Initial contract worth RM3.79 billion for three years
  • Aspires to be a major industry player 'with exponential growth prospects'

KUALA LUMPUR, MALAYSIA - Media OutReach - 26 February 2021 - In a filing to Bursa Malaysia this evening, Vivocom Intl Holdings Berhad ('Vivocom') announced that V Development Group via one of its subsidiaries has secured a 'massive win' worth approximately USD934.7 million or the equivalent of RM3.79 billion.

Rain International Sdn Bhd ('Rain International') is a 97% owned subsidiary under the V Development Group which was recently merged into the Vivocom Group. The Company's proposed acquisition of V Development Group had been recently approved by the relevant authorities.

Rain International is principally involved in the mineral trading and exportation business, supplying sand to its client mainly in Hong Kong and China for reclamation and construction works. The Company had recently signed a contract for the supply of marine sand for a minimum period of three years.

The contract is for the supply of sand to Zhen Hua Engineering Company Ltd-China Communications Construction Company Ltd-CCCC Dredging (Group) Company Ltd. (ZHEC-CCCC-CDC), a Joint Venture contractor appointed to undertake the main reclamation works for the Hong Kong International Airport Three Runway System Project.

Director Mr William Chan Ching-Kee said: "As the appointed agent for the ZHECC-CCCC-CDC Joint Venture, we are looking forward to the exportation of sand from Malaysia to our client in Hong Kong to commence without any further delay."

Dato Seri Chia is optimistic that the contract would be extended for another two to three years and could potentially generate revenue of up to RM6 billion.

"The sand business is a major boost because it gives us tremendous visibility. The potential revenue is huge, recurring and highly scalable," its jubilant CEO, Dato Seri Chia Kok Teong exclaimed.

"The potential for explosive growth in the sand business is real and tangible, and bodes well for the Group in the next few years."

"We are starting with 3 years but the contract can easily be increased to 5 years and beyond, with higher tonnage shipped every 6 months. The exportation of sand will increase sharply over time," he added.

Besides the reclamation works for the Hong Kong International Airport, the rapid pace of construction and reclamation works in China and Singapore also requires heavy demand for sand, which is a considerable boon to Malaysia.

"The market for sand export is extremely humongous and will fuel the Group's rapid growth for the next several years. The RM3.79 billion Win is the first of many more to come."

"I have in fact urged my team to secure up to RM10 billion worth of sand contracts by the end of 2021. This is part of our overall transformation strategy to become a multi billions conglomerate," declared Dato Seri Chia.

"It is our core strategy to strengthen and diversify the Group's revenues generation capabilities and capacities and not be too narrowly focussed."

"Presently, we are already in negotiations for another RM2 to RM3 billion sand contract. Once finalised, we will make the relevant announcement as per Bursa Malaysia's requirements," Dato Seri Chia elaborated.

The sand would be procured from an approved permit holder to export sand overseas, and sourced from concession areas in Sandakan and Sungai Beluran in Sabah and throughout Malaysia.

"Even with this massive sand contract already secured, we will not be complacent. I have earlier promised to transform Vivocom into a behemoth Conglomerate and I will work non-stop to deliver on the promise," Dato Seri assured.

Since Dato Seri Chia's entry into Vivocom in January 2020 when its price was at 15 cents, the share has climbed sharply and last closed at RM1.06 on Thursday, 25th February 2021.

"I am very optimistic that Vivocom shares will continue to grow strongly and be worth a lot more than presently over time. I'm proud to say that we are no longer a penny stock," he reflected.

"My team is totally committed to building Vivocom into a reputable and profitable public company, one with solid fundamentals, sustainable profits and healthy cashflows."

"As a priority, we will work towards getting the Group elevated to the Main Board of Bursa Malaysia and be a dividends-paying company soonest possible," quipped Dato Seri.

To show his commitment, Dato Seri Chia has undertaken a voluntary self--imposed moratorium (or SIM) in that he will not dispose his personal stakes in Vivocom for the next 3 years. This will ensure the company's long-term price stability and sustainability.

"We want a stable and strong share price so that the Company can use its shares with its high liquidity as a currency for M&A activities to fund and fast-track expansion and growth," he explained.

"A strong share with high liquidity is a most valuable and prized asset. We will use it to buy Companies with game-changing and disruptive strategies. To look for the Next Big Thing."

"The enormous followings in the Company are what is driving in tremendous liquidity and momentum giving our share price added impetus," Dato Seri proudly asserts.

"We aspire to emulate Berkshire Hathaway strategy started over 40 years ago by Mr Warren Buffet. Mr Masayoshi Son built SoftBank Group of Japan along the same philosophy and Alphabet in US adopted similar strategies."

"These three companies are presently amongst the most valuable and admired companies in the world. I have the same dream for Vivocom. I am determined to leave behind an enduring legacy for all our valued shareholders," concluded Dato Seri Chia.

Global Social Commerce Market to Reach $604.5 Billion in 2027 - Brand Spur
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