Shopping on social networks such as Facebook, TikTok and WeChat would grow three times faster than sales from traditional channels over the next three years, a study released by Accenture found.
Social commerce, defined as transactions that take place entirely within the context of a social media platform, are to reach US$1.2 trillion by 2025, up from US$492 billion last year, the consulting firm said in the report.
The trend is being driven by Gen Z and Millennial consumers, who are expected to account for 62 percent of the spending.
The most popular products sold via social networks include clothing, consumer electronics and home decor. Beauty and personal care products are also seeing growth, with online influencers playing a significant role.
The trend offers good news for mom-and-pop shops: More than half of so-called social buyers surveyed said they are likely to support small businesses over larger retailers, and would likely buy from them again.
This might allow new brands to build loyalty and gain traction.
Accenture also found that about 3.5 billion people used social media last year, spending on average two-and-a-half hours engaged with it per day.
The market for social commerce is far less saturated in the US and the UK than in China, where 80 percent of users make purchases on social media, Accenture said.
China is expected to remain the most advanced market for social commerce in size and maturity, Accenture said, with the highest growth being posted in developing markets such as India and Brazil.
The study is based on an online study of 10,053 social media users in China, India, Brazil, the US and the UK conducted from Aug. 12 to Sept. 3.
Earlier last year, Accenture carried out in-depth interviews in those markets.
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