In 2019, China’s social e-commerce transaction scale has accounted for 19.4% of the total scale of national online retail, and it is expected that this year’s social e-commerce transaction volume will reach 3.54 trillion yuan, accounting for up to 30%.
Since 2011, the social e-commerce company, which originated from Weibo, a social platform, has entered a period of rapid growth after rapid development in recent years.
It’s worth noting that, according to different operating modes and traffic acquisition methods, the current types of social e-commerce are mainly divided into group buy, distribution, content and social groupon. In recent years, a number of typical models such as Pingduoduo and Little Red Book have emerged. Representatives of social e-commerce companies.
However, in the context of the continuous growth of social e-commerce transaction volume, the market size growth rate is gradually slowing down. In 2019, the growth rate of the social e-commerce market declined as high as 21.47%, which means that dividends have a tendency to be divided. Social e-commerce will still face fierce competition and related risks in the future development.
In addition, imperfect policies and industry standards have led to a possible regulatory vacuum. The development of the social e-commerce industry is still in the middle and late stages of “savage growth”, and industry control still needs to be strengthened.
Group Buy and Distribution module total market share will exceed 70%
In 2019, the scale of Group Buy’s social e-commerce is about 1.01 trillion yuan, accounting for 49.16% of the overall social e-commerce transaction volume. It is expected that this proportion will exceed 50% in 2020. Pinduoduo is a leader in this field.
Distribution’s social e-commerce transaction scale is growing rapidly. It is estimated that the distribution-based social e-commerce transaction scale will exceed 500 billion yuan in 2020, accounting for about 20% of the entire social e-commerce scale.
The content type social e-commerce market share has been declining year by year, and the social groupon type social e-commerce model is developing slowly. The content type social e-commerce market will reach 89 billion yuan in 2020.
Social e-commerce is expected to continue to increase in volume, but still accompanied by “growth pain”
It is precisely because of the existence of these relatively fast-growing companies and the rapidly emerging industry rookies that the development of the entire industry of social e-commerce continues to be optimistic.
In fact, whether it is the favorable policy environment, technological advancements such as the Internet of Everything, or the broad market space brought about by the “decentralization” trend, social e-commerce is expected to usher in sustained and heavy growth.
With the rapid development of the social e-commerce industry, with increasingly fierce market competition, related risks will also increase during the development of the industry.
For example, the closed loop and insufficient efficiency of the social e-commerce supply chain and service chain will directly affect consumer experience and stickiness. In this regard, large e-commerce companies such as Taobao and JD.com have become more mature and complete, but some small and medium-sized companies still have many irregularities in some links and scenarios.
Therefore, this requires social e-commerce companies to carry out business activities on the premise of regulating legal operations, and to assume the main responsibility of the industry and social responsibility. At the same time, social e-commerce companies should be closer to market demand, adapt to market changes, and always maintain innovations in technology & business modules, such as establishing an iterative flow distribution method through algorithms, increasing the stickiness of users on the supply side and logistics side, and further mining The economic value of the community, etc.