Social Commerce Growth Doubles in Southeast Asia
Despite Covid-19 restrictions easing somewhat in parts of Southeast Asia, the pace of growth for social commerce shows few signs of slowing. If anything, more people are spending more of their time discovering, considering, and purchasing products within the social media ecosystem.
In the first half of 2021, orders and Gross Merchandise Value (GMV) jumped 102 percent and 91 percent, respectively over the same period last year, iKala’s annual study titled ‘Riding the Pandemic Wave & Beyond’ stated.
While e-commerce (91 percent) remains the preferred channel for shoppers in Southeast Asia, social commerce (78 percent) is emerging hot on its heels, surpassing even traditional retail (35 percent). In fact, as many as 42 percent of total shoppers said they use social media to make purchases 1-2 times per month, and 35 percent use it shop more than three times a month.
Social commerce’s success goes beyond frequency, too, with revenue per order up 88 percent during the period. This means consumers aren’t just shopping more, they are also spending more on each order.
“Southeast Asia already had some of the most avid social media users in the world, and spurred by the pandemic, they’ve taken to social platforms for their shopping needs at an exhilarating pace,” said Sega Cheng, Co-Founder, and CEO, iKala. “Even as brick-and-mortar reopens, it’s become clear that social commerce is not a phase — the ease, convenience, and accessibility of this format have earned it a permanent place in the way this region shops.”