Generation Z drives rapid growth of social e-commerce

Recently, according to foreign media reports, the social commerce industry in countries such as the United States and Brazil is booming, attracting a lot of investment from global companies. In this wave, Generation Z has become a major influence on shopping habits, driving the rapid growth of this field through its preferences in social commerce and online shopping.

The survey shows that Generation Z considers social commerce (63%) and live commerce (57%) to be the most important factors in the shopping experience. In addition, the year-on-year growth rates of social commerce in the United States and Brazil reached 18% and 25.7% respectively, indicating an increase in investment and enthusiasm in this field. Future investment forecasts for social commerce show that the US market is expected to reach US$73 billion in 2024 and the Brazilian market will reach US$10.65 billion in 2029.

According to the research report, in terms of shopping habits, Generation Z is more inclined to buy shoes and clothes online (65%), followed by entertainment and electronics (49% and 45%). 35% of Generation Z prefer to buy leisure products online rather than in-store.

Meanwhile, social media platforms are strengthening their social media presence through campaigns to attract more traffic. Meta's Instagram has partnered with e-commerce sites such as Amazon to allow users to buy products directly, while Pinterest's advertising revenue grew 11% in the third quarter of 2023.

TikTok is becoming increasingly important in the field of social commerce. Data shows that after the successful launch of TikTok Shop in 2022, TikTok is becoming a popular social commerce platform for Generation Z to shop online. In 2023, 53% of American Generation Z used social media platforms for holiday shopping. By 2025, social commerce sales will exceed $100 billion.

In Brazil, the success of social commerce platforms has been driven by brands introducing WhatsApp Business. The newly launched TikTok Music Streaming platform has been a huge success in the Brazilian market, attracting potential Gen Z customers to the platform.

While the US and Brazilian markets are thriving under social commerce platforms, other industries such as influencer marketing and affiliate marketing are also rising rapidly. Brands and advertisers should actively integrate social media as a powerful traffic channel generator. Platforms such as Facebook, TikTok, Instagram and WhatsApp are not only active places in the market, but also important ways for brands to directly interact with consumers, cultivate brand loyalty and drive conversions.

Author✎ Summer/
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