Latin America Social Commerce Market and Future Growth Data Book 2022: Social Networks Offer Tools for Small Businesses to Gain Market Share in Argentina – ResearchAndMarkets.com

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DUBLIN–(BUSINESS WIRE)–The “Latin America 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 from ResearchAndMarkets.com offer.

The social commerce industry in Latin America is expected to grow by 34.4% on a yearly basis to reach US$6,205.8 million in 2022. The social commerce industry is expected to grow steadily over the forecast period, registering a CAGR of 28.9% during the period 2022-2028. The GMV of social commerce in the country will grow from US$6205.8 million in 2022 to reach US$27370.6 million by 2028.

Over the past four to eight quarters, the social commerce industry has grown rapidly in Latin America, particularly in Brazil and Mexico. The trend is also accelerating in other Latin American countries, such as Argentina, where the e-commerce industry has seen significant growth since the Covid-19 outbreak. Along with the growth achieved by the e-commerce sector, shopping through social media platforms has also gained popularity among consumers.

While the bulk of online shoppers still prefer to buy through e-commerce platforms, the popularity of social commerce business model is gaining momentum in the region. With the growing popularity of the social commerce industry in Latin America, the publisher expects more and more consumers to embrace social commerce in the region over the next four to eight quarters.

With changes in consumer buying behavior expected to persist in the post-pandemic era, the publisher expects the penetration rate of social shoppers to see strong near-term growth in Mexico. According to the Q1 2022 Social Commerce Market Survey, Mexico’s social shopper penetration rate reached 31% in 2021, putting it behind Brazil with 39% in the Latin America region. As more shoppers purchase products and services online, the publisher expects a strong inflow of investment from global investors, including venture capital and private equity firms, at the over the next eight quarters.

Innovative social commerce startups bring e-commerce to non-digital consumers in Mexico

In Latin America, a large portion of consumers still do not have access to digital channels, such as e-commerce platforms and mobile wallets. Additionally, consumers are also wary of growing concerns about online fraud. Social commerce platforms are innovating with their product offerings in Mexico to tap into this consumer population.

According to a recent survey, more than half of Brazilian consumers have made a social commerce purchase in the past four to six quarters. The growing internet and smartphone penetration rate among consumers is supporting the growth of the social commerce market in Brazil. Moreover, the shift to digital channels has also led to an increase in the penetration rate of social buyers in Brazil. According to the publisher, Brazil is expected to achieve a social buyer penetration rate of nearly 40%, the highest of any Latin American country.

For social commerce buyers in Brazil, features that help them discover and evaluate potential purchases play a much bigger role than prices and discounts. Therefore, it is crucial for social commerce platforms to emphasize their user interface to make shopping more convenient for shoppers in the country.

Online influencers contribute to the growth of the social commerce industry in Brazil

In Brazil, online influencers are also driving the growth of the social commerce industry. Online influencers play an important role in enticing consumers to purchase products through social media platforms such as Facebook and Instagram. According to a recent survey, over 60% of consumers have made purchases through these platforms without leaving the apps.

As of August 2021, nearly 26.5% of consumers have made purchases on social commerce live streams. With influencer credibility reaching more than 75% in Brazil, the publisher expects online influencers to continue driving social commerce sales through livestreams and promotional campaigns over the next four to eight quarters. . This will subsequently contribute to the growth of the entire social commerce industry in Brazil in a short and medium term perspective.

About 40% of Argentine consumers have made purchases through social commerce platforms. However, as the business model becomes clearer to consumers, the adoption rate is expected to increase significantly in the short to medium term.

Social networks offer tools for small businesses to gain market share in Argentina

Social media platforms provide tools for small business owners to set up their virtual stores on the platform to break into the social commerce industry. During the global pandemic, this strategy of offering business tools has helped social networks gain popularity in the social commerce market in Argentina. Additionally, the shift towards online shopping among consumers has also caused these social media platforms to innovate in their service offerings over the past few quarters.

With the trend of online shopping set to continue among consumers in the post-pandemic era, social media platforms and networks are expected to provide businesses with more tools that can help them drive increased sales and revenue. The publisher expects this to further drive the growth of the social commerce industry in Argentina in the short to medium term.

Report scope

E-commerce industry market size and future growth dynamics by key performance indicators, 2019-2028

Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028

Social commerce industry market size and forecast by retail product categories, 2019 – 2028

  • Clothes and shoes

  • Beauty and personal care

  • Food and groceries

  • Appliances and Electronics

  • Home improvement

Social commerce industry market size and forecast by end-use segment, 2019-2028

Social commerce industry market size and forecast by end-use device, 2019 – 2028

Social commerce industry market size and forecast by location, 2019 – 2028

Social commerce industry market size and forecast by location, 2019 – 2028

  • Tier 1 cities

  • Tier 2 cities

  • Tier 3 cities

Social commerce industry market size and forecast by payment method, 2019-2028

  • Credit card

  • Debit card

  • Payment

  • Prepaid card

  • Digital and mobile wallet

  • Other digital payment

  • Cash

For more information on this report, visit https://www.researchandmarkets.com/r/15j42f

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