DUBLIN–(BUSINESS WIRE)–The “Latin America 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.
The social commerce industry in Latin America is expected to grow by 34.4% on annual basis to reach US$6205.8 million in 2022. The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 28.9% during 2022-2028. The social commerce GMV in the country will increase from US$6205.8 million in 2022 to reach US$27370.6 million by 2028.
Over the last four to eight quarters, the social commerce industry has gained rapid momentum across Latin America, especially in Brazil and Mexico. The trend is also gaining momentum in other Latin American countries, such as Argentina, where the e-commerce industry has recorded significant growth ever since the outbreak of Covid-19. In parallel to the growth achieved by the e-commerce sector, buying through social media platforms has also gained popularity among consumers.
While the major chunk of online shoppers still prefers buying through e-commerce platforms, the popularity of the social commerce business model is gaining ground in the region. With the growing popularity of the social commerce industry in Latin America, the publisher expects more and more consumers to adopt social commerce in the region over the next four to eight quarters.
With changes in consumer purchasing behavior expected to persist in the post-pandemic era, the publisher expects the social buyer penetration rate to record strong growth from the short-term perspective in Mexico. According to Q1 2022 Social Commerce Market Survey, the social buyer penetration rate in Mexico reached 31% in 2021, which is second only to Brazil at 39% in the Latin American region. As more and more shoppers buy products and services online, the publisher expects a strong inflow of investment from global investors, including venture capital and private equity firms, over the next eight quarters.
Innovative social commerce startups are bringing e-commerce to the non-digital consumers in Mexico
In Latin America, a large proportion of consumers still do not have access to digital channels, such as e-commerce platforms and mobile wallets. Moreover, consumers are also wary of the growing concerns around online fraud. Social commerce platforms are innovating with their product offerings in Mexico to tap into this consumer demographic.
According to recent survey, more than half of the Brazilian consumers have made a social commerce purchase in the last four to six quarters. The growing internet and smartphone penetration rate among consumers is supporting the growth of the social commerce market in Brazil. Moreover, the shift towards digital channels has also resulted in an increased social buyer penetration rate in Brazil. According to the publisher, Brazil is projected to achieve a social buyer penetration rate of nearly 40%, which is the highest among all of the Latin American countries.
For social commerce shoppers in Brazil, features that help them discover and evaluate potential purchases play a much more important role as compared to pricing and discounts. Consequently, it is crucial for social commerce platforms to emphasize their user interface to make shopping more convenient for shoppers in the country.
Online influencers are assisting the growth of the social commerce industry in Brazil
In Brazil, online influencers are also driving the growth of the social commerce industry. Online influencers are playing an important role in getting consumers to buy products through social media platforms such as Facebook and Instagram. According to recent survey, more than 60% of the consumers have made purchases through these platforms without leaving the applications.
As of August 2021, nearly 26.5% of the consumers made purchases on social commerce live streams. With the credibility of influencers reaching more than 75% in Brazil, the publisher expects online influencers to keep driving social commerce sales through live streams and promotional campaigns over the next four to eight quarters. This will subsequently assist the growth of the overall social commerce industry in Brazil from the short to medium-term perspective.
Approximately 40% of the consumers in Argentina have made purchases through social commerce platforms. However, as the business model becomes clearer to consumers, the adoption rate is expected to surge significantly from the short to medium-term perspective.
Social networks are offering tools to small businesses to gain market share in Argentina
Social media platforms offer small business owners tools to set up their virtual shops on the platform to penetrate the social commerce sector. During the global pandemic, this strategy of offering tools to businesses helped social networks to gain widespread popularity in the social commerce market in Argentina. Moreover, the shift toward online shopping among consumers has also led these social media platforms to innovate with their service offerings in the last few quarters.
With the online shopping trend expected to continue among consumers in the post-pandemic era, social media platforms and networks are projected to further provide businesses with tools that can help them generate increased sales and revenues. The publisher expects this to further boost the growth of the social commerce industry in Argentina from the short to medium-term perspective.
Report 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
Social Commerce Industry Market Size and Forecast by End Use Segment, 2019-2028
B2B
B2C
C2C
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/15j42f
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