Social media continues to play an important role in China’s e-commerce market in the last three years. Social e-commerce GMV reached 626.85 billion yuan in 2018 with an increase of 255.8%. It’s expected to continue the fast growth and exceed 1.3 trillion yuan in 2019 and 2.86 trillion in 2021.
Share of social e-commerce in China’s online shopping market expanded from 0.1% to 7.8% between 2015-2018. Important platforms in this sector include Pinduoduo, Xiaohongshu, WeChat (Haowuquan), and video broadcasting apps. Read the Art of Social E-Commerce that Xiaomi can teach you.
Chinese social e-commerce companies have been growing at a compound annual growth rate of 100.6%. Their penetration rate has increased to 11.9%. 80% of internet shoppers are using social e-commerce channels. The penetration rate of group shopping consumers has reached the highest at 57%.
Compared with the traditional model, the essence of social e-commerce is to leverage the role of individuals in the sales process. Through the decentralization of customers and services, it has better adapted to the challenges of the high customer acquisition cost, stressed platform growth and low loyalty of users that face the traditional e-commerce channels. Find out more here.