As social media platforms, such as Facebook, Instagram, and TikTok, continue to invest and improve their social commerce capabilities, the trend of social buying and shopping is projected to grow at a significant rate in Australia.
According to the Australia Social Commerce Market Report 2023 by ResearchAndMarkets.com, the country’s social commerce industry is expected to grow by 14.4% on annual basis and eventually reach $2.45 billion this year.
The social commerce industry is expected to grow steadily until 2028 with a compound annual growth rate of 11.7%, when the industry is expected to become a $3.2 billion market.
While retailers will continue to partner with influencers to drive their social commerce revenue, spending by brands in the space will be significantly higher for activities such as brand awareness, engagement, and online store traffic, the researchers found.
Furthermore, the competitive landscape in the Australian social commerce industry is also expected to grow significantly, amid the entry of new players that are seeking to tap into the growing trend of live stream shopping.
Millennials and Gen Z shoppers are projected to drive social commerce revenue for brands and retailers in the country. Overall, the industry is expected to record steady growth over the next three to four years, as investment in the sector continues to rise.
The popularity of social commerce has increased significantly in Australia and this trend is projected to further grow from the short to medium-term perspective. Consequently, to gain a competitive advantage, retailers are increasingly investing in the space to drive engagement and reach more customers.
LSKD, an Australian sportswear brand, has increasingly invested in social commerce capabilities and is planning to further boost its investment in the space to drive customer engagement. The firm is planning to offer consumers a social media-like experience on its website and is, therefore, betting on video content capabilities. The firm already has a strong presence in the social commerce space and future investment will assist the firm in further strengthening its position in the sector.
From the short to medium-term perspective, the publisher expects more retailers to increase their investment in the social commerce space, which will also drive the growth of the overall market over the next three to four years.
The consumer demand for innovative and interactive shopping experiences has driven the growth of the social commerce industry. With the rising trend of live streaming shopping in Australia, more players are entering the segment, thereby driving the competitive landscape as well.
Tolstoy, the new shoppable video platform launched in Australia, is seeking to revolutionize the way consumers make purchases while driving incremental revenue for brands and retailers. As of November 2022, the firm has partnered with over 5,000 brands, which also includes hundreds of businesses in Australia, including Hero Packaging, Culture Kings, and others.
The shoppable video platform has made it easier for Australian retailers to embrace the shift to social commerce while allowing them to drive incremental revenue.
With the firm having over 40 million consumers watching videos every month, the entry into the Australian market can further accelerate the growth of the domestic social commerce industry from the short to medium-term perspective.
Leading social media platforms are increasingly boosting their investment as they continue to make inroads in the social commerce space. This investment from global players is expected to assist the domestic market growth significantly.
As of November 2022, YouTube is further delving deeper into the social commerce space. In 2023, the firm is planning to launch new social commerce capabilities on its platform, as it seeks to garner more market share in the global social commerce industry. In Australia, the firm already allows consumers to shop from the platform through its Shorts feature.
From the short to medium-term perspective, more such firms are expected to launch innovative features. Consequently, the investment and innovation by these leading players in the global market will keep supporting the industry growth in Australia over the next three to four years.
This report provides a detailed data centric analysis of social commerce industry, covering market opportunities and risks. With over 50+ KPIs at country level, this report provides a comprehensive understanding of social commerce market dynamics, market size and forecast, and market share statistics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
