III. Industry Analysis

Amid the COVID-19 crisis, the global market for social commerce, estimated at $559.7 billion in the year 2020, is projected to reach a revised size of $2.9 trillion by 2026, growing at a CAGR of 30.8% over the analysis period. This growth is ascribed to a surge in average time spent on social media platforms during the pandemic coupled with greater convenience for buyers to purchase products. Online buying and social commerce industry prospects are also improving as a result of the tremendous increase in 4G-enabled smartphone usage, extending 4G network deployment, and subsequent rise in the number of individuals accessing online multimedia content over mobile devices. 

Social media recommendations motivate 28% of millennials to buy various products. The ever-increasing number of users and changing consumer preferences make it imperative for a business to embrace social commerce and increase its brand and product awareness through social media platforms. Additionally, it is projected that an increase in the number of active consumers on various social media platforms, including Facebook, Twitter, Inc., Reddit, and Taobao.com, will fuel market expansion over the forecast period. The industry is expanding due to more people choosing to shop online, which is made easier by the variety of available payment choices. Customers can easily place product orders from the convenience of their homes. Discounts, cashback, same-day deliveries, EMI choices, and other services are provided by a number of social networking platform retailers, making online shopping convenient and profitable compared to traditional purchasing.