Shopping on social media platforms like Instagram and TikTok is expected to grow exponentially over the next few years. As a tool that facilitates the integration of buying and selling into the fabric of everyday life while helping brands foster community and connection, its growth is not surprising.
Accenture recently issued a report called “Why Shopping’s set for a social revolution” which shows how the power of social commerce and its power to transform the retail industry. The report predicts that by 2025 social commerce will reach $1.2 trillion, up from $492 billion in 2021, creating a potential power shift from big retailers to small businesses by offering independent retail businesses the opportunity to easily connect to new customers and markets. Accenture notes that social commerce “has hugely positive implications for small businesses and entrepreneurs as they are able to reach potentially massive markets that were simply not available to them before”.
Yet other reports highlight the less talked about challenge of this ‘revolution’ – debt. While the ease of purchasing via a social media platform is a huge win for the retail industry, it has been found to cause shoppers to go over budget or in debt. Moving forward, retailers will need to prioritize putting customers at the heart of social commerce planning in order to maximize business benefits while fostering consumer trust.