Shopping on social media platforms is expected to reach $1.2 trillion globally by 2025, growing three times as fast as traditional e-commerce, a new report by Accenture.
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Growth is predicted to be driven primarily by Gen Z and Millennial social media users, accounting for 62% of global social commerce spend by 2025.
Social commerce refers to a person's entire shopping experience, from product discovery to the check-out process taking place on a social media platform.
Highest growth in social commerce will be seen in developing markets such as India and Brazil, the report said.
Accenture estimated that eight out of ten social media users in India use social commerce to make purchases and users from India are more than twice as likely to sell on social platforms compared to users in the US and UK.
However, users are concerned that social commerce purchases may not be protected or and refunds may not be processed properly, making trust the biggest barrier to adoption.
“It will be crucial that these social commerce platforms offer consumers the right experience built around trust and satisfaction, and broaden their appeal through the use of local languages and video interfaces," said Anurag Gupta, Managing Director and Lead, Strategy & Consulting, Accenture in India.
The consulting firm's report found that by 2025 the highest number of social commerce purchases globally are expected in clothing followed by consumer electronics and home decor.