How APAC brands can unlock the potential of social commerce: Report

Brands have a significant opportunity in social commerce, with three out of four people saying they are likely or highly likely to buy through social media in the future, according to a report by global data and measurement-driven agency Essence that investigates the rapidly growing trend of consumers buying products and services directly on social platforms.

Why it matters

While social media platforms have always provided an environment for buyers and sellers to interact, there is a shift towards organised commerce on platforms, enabling discovery, browsing and purchasing to take place on one platform without the need to interact with any external websites or applications, thus creating a seamless experience with fewer clicks, as well as higher potential revenue and conversion rates.

Key insights

Some useful statistics highlighted in the report include:

• China is the leader in social commerce, forecast to account for 13% of total e-commerce sales in 2021.
• 80% of consumers in China bought items on social media, followed by Singapore (50%), India (49%), and Indonesia (48%). 
• 90% of Chinese who participated in live shopping and conversational commerce enjoyed the shopping experience.
• 88% of Indian respondents (the highest after China) say they are likely to buy via social media.
• In Indonesia, apparel (49%), food delivery and takeaway (33%), and beauty (32%) were the most purchased categories.
• In Singapore, 37% still use credit/debit cards for social media transactions; 25% for both digital wallet and mobile payment.
• 50% of Australians participated in live shopping, conversational commerce; but 80% enjoyed the shopping experience.

Quote

“E-commerce is maturing as a field, with social media giving brands and retailers new ways to reach audiences and new growth opportunities. In this environment, social commerce serves as a key future-proofing method for the next five years and beyond.” – Aniket Basu, senior director, technology and e-commerce, Essence.