As Gen Z and Millennials increasingly research and purchase products through social media as well through live and virtual shopping, gaming, and automated reality platforms, social shopping is set to outpace e-commerce, putting pressure on brands that face a collapsing consumer purchasing journey. How consumers are behaving and the implications for brands, social media platforms, and retail media outlets are the subject of The Rise of Social Shopping, released by Horizon Media today.
The findings from the WHY Group, Horizon Medias intelligence center of excellence, and Night Market, Horizons commerce affiliate, demonstrate that social shopping is quickly replacing ecommerce. The results show that one in four people today are scrolling to shop. Among social shoppers, 80 say they make a purchase twice a month and 73 expect to purchase at least once a month in the upcoming year, with Millennials most likely to be frequent shoppers. Those not currently shopping on social are open and ready 75 of Gen Z, 76 of Millennials and 61 of Gen X feel comfortable purchasing on social media. Marketers need to tap into these platforms to connect with customers where they are to drive additional revenue.
Beyond the Gen Z adopters, Millennials and Gen X are also quickly shifting online buying habits to social platforms including TikTok, Pinterest, Snapchat, Facebook, and Instagram. In addition to live shopping, gaming platforms such as Twitch and Roblox now connect brands to buyers.
More than half of products purchased through these platforms are brand name and purchases span categories - more than 40 include Apparel, Beauty, Electronics, and Personal Care. Impulse buys are big, including trending and seasonal products.
The market opportunity is large Social commerce revenue is projected to reach 6.2 trillion globally by 2030 Statista. Instagram, Facebook, YouTube and Tik Tok have already integrated shopping into their user experience and more brands are jumping in to generate revenue. More than 72 of social shoppers say they could replace at least some of their online shopping with social shopping.
