DUBLIN–(BUSINESS WIRE)–The “Australia Social Commerce Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics – Q1 2022 Update” report has been added to ResearchAndMarkets.com’s offering.
Social commerce industry in Australia is expected to grow by 9.2% on annual basis to reach US$1, 385.0 million in 2022.
The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 9.8% during 2022-2028. The social commerce GMV in the country will increase from US$1, 385.0 million in 2022 to reach US$2, 437.5 million by 2028.
The appetite for shopping through social media channels is growing in popularity among consumers in Australia. According to the Q1 2022 Global Social Commerce Survey, nearly 6 million consumers aged 14 or older were expected to make a purchase through the social network in 2021. This represents a whopping 30.2% of all internet users in the country, which is also one of the highest in the world.
In line with the global trend, e-commerce sales surged significantly in Australia in 2020, partly because of the global pandemic outbreak and the resulting disruptions in traditional brick-and-mortar retail. Notably, social commerce, which was already on the path to becoming mainstream in Australia by 2019, also came along for the ride. According to the publisher, in-app spending on social media platforms surged nearly ten times in 2021 as compared to 2019.
Moreover, the number of social commerce buyers increased significantly in Australia over the next four to eight quarters, and the publisher expects this number to rise substantially from the short to medium-term perspective. With big players, such as Facebook and Instagram, driving the market growth in the country, the publisher expects emerging startups to raise big funding rounds over the next four to six quarters to compete with big players.
Social commerce companies are also expected to forge strategic alliances with small and big retailers to further drive sales through their social commerce platforms in the country. As the sector continues to record strong growth, the publisher also expects more investment from private equity and venture capital firms in the social commerce industry in Australia. Overall, the publisher expects the Australian social commerce industry to record strong growth from the short to medium-term perspective.
Startups are raising funds to compete with giant social media platforms in the Australian social commerce market
As the social commerce industry continues to record strong growth, new firms are entering the market to gain market share for themselves in Australia. Notably, these startups are also raising large funding rounds to compete with big players such as Facebook and Instagram.
- In May 2021, Carted, an Australian social shopping startup, announced that the firm had raised A$13 million in a funding round, which was led by Blackbird Ventures. Notably, the firm is planning to use the funding round to compete with other players in the social shopping space.
- The firm developed a universal commerce tool that seeks to provide infrastructure for creators and developers to sell other people’s products. Notably, the firm also claims that its product has solved a problem that Instagram has been trying to solve for the last five years.
- For integrating the Instagram shopping platform, the team at Instagram has to sign on each and every individual business one by one. However, this is not an issue that the firm has to face. Its infrastructure is designed to be directly accessible to creators and developers, thereby connecting them with billions of sellable products or goods through a single API. Notably, the Carted API allows businesses or creators to generate additional revenue by selling products or goods from other brands without the need for any intermediaries such as affiliate links.
TikTok is looking to replicate its US and UK social commerce success in Australia
TikTok, the video-sharing platform, already drives a significant amount of sales in Europe, the United States, and China, with brands such as Dior and Gucci. The firm used the global pandemic as an opportunity to reach shoppers directly on social apps. Now, the firm is looking to replicate its success in these regions in the Australian social commerce market.
- At the Melbourne Fashion Festival 2021 Australian Fashion Summit, TikTok announced that the firm looks at Australia as the next major market for growth in the social commerce space. Similar to its strategy in other markets, the firm is expected to conduct livestream shopping events in Australia.
- Retailers in the country are also expected to partner with TikTok over the next four to eight quarters to boost their sales numbers, a strategy similar to what retailers adopted in the United States. Notably, in March 2021, TikTok held the first shop-along event with Walmart in the United States, where creators and influencers joined the stream to demonstrate products. The event garnered more than seven times more views than Walmart anticipated and also grew its follower base by 25%.
Strategic partnerships to further penetrate and grow market share in Australia
While Facebook continues to roll out new shopping features and increase its investment in the social commerce space, other firms are entering into a strategic partnership to further penetrate and grow their market share in the industry. Pinterest, for instance, has partnered with Shopify, allowing Shopify merchants to sell products on Pinterest in a more seamless and convenient manner.
Moreover, TikTok is expected to forge alliances with major retailers in the fashion category to replicate its social commerce success in other markets in Australia. The firm is expected to conduct livestream shopping events to attract more and more shoppers to its platform in the country over the next four to eight quarters.
Scope
Australia Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Australia Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Australia Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2019-2028
- Clothing & Footwear
- Beauty and Personal Care
- Food & Grocery
- Appliances and Electronics
- Home Improvement
- Others
Australia Social Commerce Industry Market Size and Forecast by End Use Segment, 2019-2028
- B2B
- B2C
- C2C
Australia Social Commerce Industry Market Size and Forecast by End Use Device, 2019-2028
- Mobile
- Desktop
Australia Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Domestic
- Cross Border
Australia Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Tier-1 Cities
- Tier-2 Cities
- Tier-3 Cities
Australia Social Commerce Industry Market Size and Forecast by Payment Method, 2019-2028
- Credit Card
- Debit Card
- Bank Transfer
- Prepaid Card
- Digital & Mobile Wallet
- Other Digital Payment
- Cash
Australia Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour, 2021
- By Age
- By Income Level
- By Gender
For more information about this report visit https://www.researchandmarkets.com/r/1qc7wt
Contacts
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T. Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
