It shows ecommerce as the largest economic force ($2.6 trillion), ahead of . We need to balance that out," he says. online retail. Social commerce is an online selling strategy that allows merchants to sell directly through social media platforms and purchases are made within the platform or app. Whereas e-commerce relies heavily on online factors, . McKinsey's preliminary forecast shows the metaverse has the potential to grow up to $5 trillion in value by 2030. (eMarketer, 2021) 95% of all purchases are projected to be done via ecommerce. Also, according to a report published by Bain and Sequoia, live and video-commerce in India will be a $20 billion a year industry by 2025. McKinsey estimates that online commerce will rise to at least $55 billion by 2022, while social commerce alone is expected to contribute $15 billion to the mix. In 2022, it projects that there will be 97.2 million social commerce buyers in the US, which is 38.2% of internet users. 1 INTRODUCTION With the most Internet users of any country, China is the world's largest and fastest-growing 35% of online sales are generated by women; eCommerce has led to savings of 11 to 25 percent for customers outside Java. The country currently has about 30 million online shoppers, with the number growing at an average of 12% every year. August 2, 2021. Purpose: This study aims to address the factors influencing customer loyalty in social commerce (SC) sites from different standpoints with the intention to use the "variety-seeking . Many channels, including Instagram, act as discovery engines for brands. This paper aims to address the new trend of social commerce as electronic commerce leverages Web 2.0 technologies and online social media. NeXT Commerce enhances the speed, precision, and flexibility needed to achieve profitable and sustainable growth, faster. 4. 1 this explosive growth puts the united states second in social purchasing only to china, where that channel already makes up more than 13 percent of the toy fair. Social media is a powerful sales platform because it leverages social media tools such as interactions, likes, shares, messaging, and more. Social Commerce. Romania's digital commerce market stood at EUR 9.8 bln in 2021, making it the second largest market in CEE, after Poland (EUR 26.7 bln) but before Czechia (EUR 9.1 bln). Another report by the consulting firm McKinsey, states that this value could well go up to 75 billion dollars by . Social commerce, a relatively new subset of e-commerce, is blurring the line between social interaction and online shopping. Social commerce penetration is growing each year, and it is particularly strong in China. The achievement takes . Social commerce platforms are tackling these issues. Direct-to-consumer (DTC) companies are also investing in online communities to humanize their brands, increase customer retention, and overcome skyrocketing advertising costs. Laporan Mckinsey, juga menyebutkan sekitar 40% dari pasar e-commerc e di Indonesia merupakan social commerce. Data were obtained from 528 participants through an online questionnaire. Sprout's data also shows that 80% of consumers surveyed are more likely to buy on social because of brand familiarity. Even if the African countries are not the first in the global ranking, the online buying itch is spreading steadily on the continent. They spend 17 percent more on e-commerce than their mobile-only peers. While some super apps integrate payment and logistics into a single app, others serve as a platform for connecting users and their wares to buyers with third-party services handling the payment and logistics. Using social commerce, shoppers discover brands, research products, and purchase items without leaving the app. Social commerce promises a seamless, in-app shopping experience that can cover all the major touchpoints from product discovery to checkout and customer service. The practice of Social Commerce has been around for several years and it's getting more popular. Menurut laporan McKinsey, Pandemi Covid-19 berdampak signifikan terhadap perubahan perilaku belanja masyarakat dari offline ke online. With a focus on China, we highlight the key fashion industry findings from The State of Fashion 2022 report from McKinsey in partnership with the Business of Fashion. 16 Analysis by Roland Berger. McKinsey Digital. Get in front of more potential customers Traditional brand loyalties are wavering as people buy more online. Together, we expand existing and build new businesses, driving . Platform social commerce juga menjembatani mitra pedagang dengan brand principal yang membutuhkan sistem distribusi yang lebih efisien. To better understand the social commerce opportunity and how mobile money providers . There are around 4.62 billion social media users in the world (Datereportal). This report includes our updated US social commerce forecast, analysis of the latest social commerce capabilities, and marketing strategies for brands. (eMarketer, 2021) China is projected to produce as much as $2.779 trillion in ecommerce sales, which is 56.8% of the worldwide total. The infusions of new technologies on the World Wide Web connect users in their homes and workplaces, thus transforming social formations and business transactions. "Brands need to move away from measuring the success of an e-commerce platform via ROI and beyond the sales it makes, to adopt a wider set of KPIs.", Encourage customers to create, cross-channel, With 369 million monthly active users, Mobile Taobao is "not only China's, but the world's largest social commerce platform," according to Jiang Fan, who leads Mobile Taobao's business atAlibaba. McKinsey Center for eCommerce Operations As more of our consumption shifts online, eCommerce has become the topic of the decade for businesses across geographies and industries. SimSim, a video-based social commerce app established by former Paytm, McKinsey and Foodpanda executives, has raised $8 million (approximately Rs 57.12 crore at current exchange rates) in its Series B funding round. McKinsey forecasts state that online-commerce sales will grow eightfold, with social commerce contributing to U$25B by 2022. McKinsey's consumer decision journey model helps you identify the moment of purchase, while the RACE Framework helps you build a strategy to get there. Exhibit 1 McKinsey_Website_Accessibility@mckinsey.com Informal commerce disebutkan berkontribusi sekitar $15 miliar-$25 miliar, sisanya dikuasai oleh e-commerce resmi. How savvy, social shoppers are transforming e-commerce . This pa . A report by McKinsey shows that applying social technology, a value of $0.9 to $1.3 trillion can be realized, and 1/3 of this value belongs to social commerce. Regular industry growth combined with e-commerce trends and pandemic-related changes to shopping norms results in a positive outlook for social commerce in 2021. Management consultants, McKinsey, estimated in 2018 that social commerce is expected to grow into a US$25 billion (RM104 billion) industry by 2022, driven by the increasing number of the middle class. Social ecommerce trends are at the center of online shopping for tomorrow's consumer, with brands investing in video and live shopping. Social commerce is on the rise as well: 34 percent of people say they have shopped on Instagram based on an influencer recommendation. Reach consumers in the places that matter Social media channels now account for much more than socializing with friends and family. This study aims to examine the impact of Arab cultural values on consumer adoption of social commerce (s-commerce). Social commerce Providing customer care/service Improving intra/inter-organisation collaboration/communication Matching talent to tasks In terms of value potential yet to be unlocked by social technologies, McKinsey estimate that at $900bn-$1.3 trillion $345 billion of this value potential would be available from product development and operations; Our e-commerce consulting draws on all of these capabilitiesincluding the specialized resources of BCG GAMMA, BCG Platinion, and BCG Digital Ventures. Curated.com's version of concierge e-commerce is a mash-up of social commerce and influencer marketing but with an important twist. After years as a fashion director at Cond Nast titles Allure and Teen Vogue, Rajni Jacques switched gears. Ibrahim Akman, Alok Mishra, (2017) "Factors influencing consumer intention in social commerce adoption", Information T echnology & People, Vol. [1] It is now one of the biggest marketing and commerce trends in China, and a significant disrupting force that all Western brands need to be aware of. The opportunity for social media as a sales channel cannot be ignored. This growth indicates the almost primal appeal of social technologies, which bring speed, scale, and economics of the Internet to social interactions. Research by McKinsey has found that social commerce - e-Commerce fuelled by social platforms - has experienced triple-digit growth figures in China over the past five years. The coronavirus outbreak has catapulted eCommerce: by one estimate from McKinsey the fashion industry had six years of the forecast growth curve for e-commerce in 2020 alone. Similar to other reports . McKinsey, in their report, mentioned that the social commerce market is to be at least $3 billion, with users buying from BlackBerry Messenger, Facebook, Instagram . 30 Issue: 2, doi: 10.1 108/ITP-01-2016-0006 . Live commerce has proven successful in China and other parts of Asia, and is rapidly spreading to Western markets, showing signs that it holds enormous potential for brands and ecommerce platforms. Social Media and The Rise of Social Commerce. Social commerce has rapidly developed as a new area in electronic commerce field and has risen the attention of both researchers and practitioners. "As social commerce proliferates, retailers are recognizing that TikTok's creative and highly engaged community sets it apart from other platforms. Social commerce is the purchasing of products and services online through social media platforms such as Facebook, WeChat, Zalo, and Line. Social Commerce is the act of promoting and selling products through a social media platform. . Among three-quarters of U.S. consumers who changed their shopping behavior since the start of the pandemic, 40% have switched their brand preferences to better suit their digital shopping habits. This shift is likely to stick, to a large extent simply because e-commerce is often more efficient, less expensive, and safer for customers than shopping in physical stores. 1 This growth is a product of increasing social media use though mobile devices and the rapid development of technology. We also draw upon proprietary BCG tools . A 2018 McKinsey report projected that by next year, the market will be valued at around US$25 billion. McKinsey reports that up to 1/3 of consumer spending is subject to influence from social shopping. On this page, McKinsey's cross-industry, cross-function insights provide an end-to-end guide to eCommerce logistics, from webstore to the last mile. Indonesia's social commerce market is expected to reach up to USD 25 billion in 2022, according to a McKinsey forecast. Social Commerce, Live Commerce, and Metaverse Article - McKinsey Quarterly Marketing in the metaverse: An opportunity for innovation and experimentation May 24, 2022 - Although widespread adoption of the metaverse may take some time, leading brands are already rewriting the rules of marketing. McKinsey memproyeksi bisnis social commerce mencapai $25 miliar di 2022. After all, if Facebook users constituted a country, it would be the world's third largest, behind China and India. The value of China's live-commerce market grew at a compound annual growth rate (CAGR) of more than 280 percent between 2017 and 2020, to reach an estimated $171 billion in 2020 (Exhibit 1).44. In short, India's social commerce sector will be twice the size of the current e-commerce market within 10 years. It has also catapulted pureplay internet retailers. I believe there are a few "Flipkarts" of social commerce in the making. The productivity benefits of enterprise social collaboration stretch across these categories and dominate those McKinsey sees providing enterprise-wide benefits. e-Commerce Topics McKinsey Global Institute The social economy: Unlocking value and productivity through social technologies 5 Social technologiesthe computer code and the services that enable online social interactionare, essentially, the product of 40 years of technology evolution and the fulfillment of a long-held vision of what computers and digital . Social commerce opportunities for 2022 There are many reasons for brands to consider social commerce but here are three: 1. social commerce, which expands reach by selling through social media channels, is expected to more than double from 2021 to 2025, when it will account for about $80 billion in retail sales. Using social technology to complete or facilitate sales transactions - Key Outcome: Sales, More to Sales than Transactions, Of course, to say that the objectives of social commerce are sales-related is fairly self-evident. Executives can even claim to know what makes social media so potent: its ability to amplify word-of-mouth effects. In addition, social . Chinese fashion market back to pre-pandemic sales levels. 4. Enter live shopping, Creators and brands who live stream a product experience to showcase a product, answer questions and - of course - entertain in the process. But dig a little deeper and four distinct social commerce objectives emerge. 'Live' shopping is the new in-store experience. Social commerce falls under the larger ecommerce umbrella, and refers to when a consumer's shopping experience occurs directly on a social media platform. As . The Chinese fashion market, both luxury and non-luxury segments, is already back to pre-Covid sales levels. Insider Intelligence predicts that social commerce will continue to grow in the next few years. Use these customer journey models to win more customers. Social commerce offers a more convenient and interactive shopping experience, which may explain why it's becoming increasingly popular. As social shopping continues to accelerate, live streaming events are becoming an integral part of this transactional . Meanwhile, U.S. live commerce market is. McKinsey, in their report, mentioned that the social commerce market is to be at least . As per Bain's report, "India's social commerce sector will be double the size of the current e-commerce market within ten years. Users spend around 23.7 hours a month on Youtube . Demystifying social media | McKinsey Downloads Artikel (PDF-458KB) Executives certainly know what social media is. With 2.9, 2.5, 2, and 1.5 billion users, respectively (Datereportal). TeL +49 (0)6172 94 88 100 eMAiL soCiALCoMMerCe@syZyGy.de WWW.syZyGy.de/soCiALCoMMerCe uniQuedigital gmBh BenjAMin TAnGe, MAnAGinG direCTor neUer WALL 10 d-20354 HAMBUrG GerMAny TeL +49 (0)40 88 14 14 10 eMAiL info@UniqUediGiTAL.de WWW.UniqUediGiTAL.de Syzygy uk ltd. Andy sTeVens, Coo The platform currently registers more than 10 million visitors a month. J., Wang, KW., Zipser, D.McKinsey (2019). In Indonesia alone, Paypal reported that 80% of Indonesian online merchants sell through social e-commerce. This hybrid strategy and digital approach is what make our teams unique and poised to tackle the challengesand opportunitiesof your business. It is worth $1.5 to $2 billion GMV market today, and will likely hit $60 billion to $70 billion by 2030." Future outlook of social commerce in India In June 2021, she moved to Snapchat's parent company, Snap Inc. to serve as its global head of fashion and beauty partnerships. "Just because you have a ton of Instagram followers doesn . Article It's showtime! Facebook, Youtube, Whatsapp, and Instagram are the world's most used social media platforms. April 2016 Kevin Wei Wang Alan Lau Fang Gong How savvy, social shoppers are transforming e-commerce McKinsey iConsumer China 2016 survey. Investors have also shown intense interest in this sector. Di samping itu, social commerce menawarkan kesempatan kerja dengan memberdayakan jaringan distribusi atau reseller. Berikut ini daftar startup social commerce yang saat ini beroperasi di Indonesia: Berkahi It shows e-commerce as the largest economic force ($2.6 trillion), ahead of sectors such as . Make More Sales, "Social is thought of as an engagement-first channel, and e-commerce as a sales-first channel. McKinsey memproyeksikan angka GMV bakal menggelembung hingga $55 miliar-$65 miliar di 2022 mendatang. McKinsey analysis based on numbers from iResearch. According to a report by Statista, e-commerce in Africa was valued at 16.5 billion dollars in 2017. For the 87% of Gen Z shoppers deriving holiday shopping inspiration from social media, YouTube, Instagram and TikTok will be the platforms they turn to for guidance. Social commerce platforms for Gen Z include Instagram, TikTok and Pinterest. . Social Commerce Made Up 11.7% of Total Chinese Retail eCommerce Sales in 2020. Indonesia continues to see strong growth in social commerce. Social commerce sales in the United States are expected to rise to $36.09 billion this year, an increase of 34.8%. 4 key benefits of social commerce 1. This is approximately 10 times higher than social commerce sales in the US. In fact, the hashtag #tiktokmademebuyit has upwards of 2.3 billion views on TikTok, and #amazonfinds has more than 6.7. McKinsey_Website_Accessibility@mckinsey.com Executives are even more bullish on e-commerce's upside potential, noting that penetration could nearly triple to as high as 35 percent (nearly $600 billion versus about $150 billion at 11 percent penetration). Based on empirical research, in 2009, McKinsey & Company suggested dramatic alternative customer journey models to the traditional . Live commerce originated in China, where McKinsey estimates the market reached $171 billion in 2020 and will jump to a valuation of $423 billion by 2022. It can also include clicking links on a. An estimated 90 million Indonesians will have joined the consuming class by 2030. Drop shipping is a popular concept in Indonesia. Other startups in the space include social commerce enabler Desty, which recently secured East. In Indonesia alone, Paypal reported that 80% of Indonesian online merchants sell through social e-commerce. Our team brings expertise across go-to-market models - including B2B, B2C, B2B2C, and D2C - powering omnichannel, social, live, and metaverse commerce. Essentially, what this means is that live and video-commerce is the next logical step in the development of social commerce in India. Now, he runs a leadership development start-up. We're constantly exploring new and innovative. China is the largest ecommerce market in the world with $792.5 million in sales, taking 33.3% of the global total. McKinsey & Company released its new report "Value creation in the metaverse," which shows the metaverse may be too big to ignore. Social commerce is here to stay and will only continue to grow, with an expected market size of $2 trillion by 2026 and a projected compound annual growth rate of more than 25 percent. Penetrasi online commerce bakal naik jadi 83% dari 74% di tahun yang sama. Social commerce is on the rise but the in-person ability to touch and experience a product is still important. What did the study find? Estimates show the value of social commerce will reach about $2.9 trillion by 2026: McKinsey. And what is fashionable in fashion retail has been significantly changed by the global pandemic. Their prediction for 2021 is that social eCommerce sales in China will be $351.65 billion (compared to $36.62 billion for the US). McKinsey's preliminary forecast shows the metaverse has the potential to grow up to $5 trillion in value by 2030. RateS is backed by Indonesia's Alpha JWC Ventures and . MSI convenes partnerships to co-create powerful cross-disciplinary approaches and implements, tests, and improves . . China Digital Consumer Trends 15 Ibid. E-Mail Chart Download KEY STAT: The number of US social commerce buyers accelerated 25.2% to 80.1 million in 2020 and will grow another 12.9% to 90.4 million in 2021. Consumers can now rapidly search for, find and compare various offerings for their needs. IT strategists have been chasing the productivity benefits of collaboration technology for many years, but social technology has the opportunity to leapfrog all those efforts, Chui said. Shu Hattori is a Japanese-British national with extensive experience in management consulting, start-ups, online social commerce, and news media.While at McKinsey & Company, he served in advanced industries, high-tech, and media in Asia, North America, and Europe for more than five years. We expect that social commerce, which is a $1.5 billion to $2 billion market today, will be worth as much as $20 billion in just five yearsand will likely hit nearly $70 billion by 2030. 1. 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