2021
0
China Social Commerce Market Report 2021
2021-08-10T04:07:59+01:00
OX1050127
3695
141266
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Report
en_GB
“The social commerce market’s growth is stagnant, with no significant expansion in consumers’ participation this year. Marketing methods dependant on social relationships seem to have reached a ceiling. Community group…

China Social Commerce Market Report 2021

£ 3,695 (Excl.Tax)

Report Summary

“The social commerce market’s growth is stagnant, with no significant expansion in consumers’ participation this year. Marketing methods dependant on social relationships seem to have reached a ceiling. Community group buying, a format of social commerce, earned attention during the outbreak and attracted internet giants who rushed into the market. Regulation will make the industry’s growth healthier and drive leading brands to pay more attention to enhancing consumers’ experience, helping to drive growth.”
– Blair Zhang, Research Analyst

Social commerce, as discussed in this Report, is defined as ecommerce based on social media or using social interactions as the main source of business. It includes platforms that feature social interactions or content sharing besides ecommerce functions, on which registered merchants range from enterprise players as well as private sellers. Private dealers on Weibo/WeChat as well as public accounts/KOLs who at some point start to market products or services once they’ve accumulated a certain number of followers are also included.

Community group buying, which is defined as one kind of social commerce, refers to a form of shopping in which an order is placed in a community group or app, and the goods are delivered to the home or picked up from a nearby pick-up site (eg the group leader).

Table of Contents

  1. Overview

    • What you need to know
      • Covered in this report
        • Excluded
        • Executive Summary

            • The market
              • Companies and brands
                • Pinduoduo
                  • Xiaohongshu
                    • Alibaba
                      • Tongcheng community group buying
                        • Mogujie launches ‘video snippets’ plan to offer better shopping experience
                          • The consumer
                            • Market growth stagnant with no significant expansion in consumers’ participation
                              • Figure 1: Social commerce related behaviours, 2021
                            • Traditional ecommerce platforms dominate the market, as various types of social commerce platforms grow
                              • Figure 2: Category bought from various ecommerce platforms, 2021
                            • Platforms leverage their own advantages
                              • Figure 3: Awareness and usage of social commerce platforms, 2021
                            • Consumers’ core demand is good price, as well as products matching their expectations
                              • Figure 4: Indicators that can improve shopping experience, 2021
                            • Apply technology to help consumers “see to believe” before purchasing
                              • Figure 5: Pain points when using social commerce platforms, 2021
                            • Community group buying must provide real convenience for Chinese communities
                              • Figure 6: Attitudes about community group buying and social commerce, 2021
                            • What we think
                            • Issues and Insights

                              • Optimal future direction is to harness acquaintance relationships differently
                                • The implications
                                  • Seize opportunities in lower tier market by providing high quality products
                                    • The implications
                                      • Community group buying explores new business models in communities
                                        • The implications
                                        • Market Factors

                                          • COVID-19 drove consumers towards social commerce in 2020
                                            • Key social media behaviours booming provides large user base
                                              • Industry players compete for peaking traffic, particularly through community group buying business
                                                • The government publishes new rules to regulate the industry’s healthy development
                                                  • Figure 7: Nine Forbidden Rules for community group buying, 2020
                                                • Consumer demand continues to expand
                                                • Key Players Performance

                                                  • Pinduoduo
                                                    • Xiaohongshu
                                                      • Alibaba
                                                        • Hema Jishi
                                                          • Meituan
                                                            • Douyin
                                                              • Tongcheng community group buying
                                                              • Competitive Strategies

                                                                • Establish paid membership system with exclusive products and service
                                                                  • Developing content-related functions to increase user stickiness
                                                                    • Figure 8: Recipes on Meituan Youxuan (left) and Xingsheng Youxuan (right), 2021
                                                                  • Apply KOS strategy to daily marketing
                                                                  • Who’s Innovating?

                                                                    • Xiaohongshu holds offline meeting for community acquaintances (社区熟人节)
                                                                      • Figure 9: Xiaohongshu holds community acquaintances’ offline meeting, 2021
                                                                    • Xiaohongshu launches exclusive content during the Olympics
                                                                      • Figure 10: Chinese Women’s Football Team officially joins Xiaohongshu, 2021
                                                                    • Douyin rolls out “Dou Brands Promoting Plan” to satisfy personalised demand with new brands
                                                                      • Figure 11: Douyin launches “Dou Brand Promoting Plan”, 2021
                                                                    • Mogujie unveils ‘video snippets’ plan to offer better shopping experience
                                                                      • Figure 12: Mogujie platform, 2021
                                                                  • Social Commerce Related Behaviours

                                                                    • Market growth stagnant with no significant expansion in consumers’ participation behaviours
                                                                      • Figure 13: Social commerce related behaviours, 2020-2021
                                                                      • Figure 14: Group buying behaviours, 2021
                                                                    • Fight for consumers’ trust with good content as content marketing in ecommerce becomes a major trend
                                                                      • Figure 15: Live streaming shopping behaviours via social media, by generations, 2021
                                                                    • Use acquaintance relationships to increase repurchase rate given peaking traffic
                                                                      • Figure 16: Social commerce platforms shopping behaviours, by family structure and living conditions, 2021
                                                                  • Purchased Products on Platforms

                                                                    • Traditional ecommerce platforms dominate the market, as various types of social commerce platforms grow
                                                                      • Figure 17: Category bought from various ecommerce platforms, 2021
                                                                    • Recommending culture prevails, especially among the post-90s and females
                                                                        • Figure 18: Top purchased categories on content-based social commerce platforms, by gender and generations, 2021
                                                                      • Platforms need to develop their own dominant categories given unsustainable low prices
                                                                        • Figure 19: The top two purchased categories on retail-based social commerce platforms, by household income and family structure, 2021
                                                                      • Community group buying platforms use fresh food as main entry point into the market
                                                                        • Figure 20: Top purchased categories on community group buying platforms, by gender and age, 2021
                                                                    • Awareness and Usage of Social Commerce Platforms

                                                                      • Platforms play on their own advantages
                                                                        • Figure 21: Awareness and usage of social commerce platforms, 2020-2021
                                                                        • Figure 22: Awareness, browsing rate and purchase conversion of social commerce platforms, 2021
                                                                      • Stand in consumers’ shoes and provide better user experience with digital solutions
                                                                        • ‘Her economy’ continues as females favour social commerce shopping
                                                                          • Figure 23: Platforms that “I have made purchase on it on the last 12 months”, by gender, 2021
                                                                        • Pinduoduo high penetration rate across all city tiers, while other platforms see slight gaps
                                                                          • Figure 24: Platforms that “I have made purchase on it in the last 12 months”, by city tier, 2021
                                                                      • Factors to Improve Experience

                                                                        • Consumers’ core demand is good price, as well as products matching their expectations
                                                                          • Figure 25: Selected factors perceived for improving shopping experience, 2021
                                                                        • Trendy KOL marketing and KOL families
                                                                          • Figure 26: Selected factors perceived for improving shopping experience between total respondents and those who purchased from KOLs’ social media accounts, 2021
                                                                        • KOS a good choice for brands to communicate with consumers
                                                                          • Figure 27: Douyin collaborated with MAC to launch the campaign #KOS101, 2021
                                                                      • Pain Points of Using Social Commerce

                                                                        • Establish membership system to increase repurchase rate
                                                                          • Figure 28: Selected pain points when using social commerce platforms, 2021
                                                                          • Figure 29: Concerns towards membership rules, by educational level, 2021
                                                                        • Apply technology to help consumers “see to believe” before purchasing
                                                                          • Figure 30: Selected pain points when using social commerce platforms, by generations, 2021
                                                                          • Figure 31: AR makeup try out function on Sephora app, 2021
                                                                        • Good aftersales service contributes to improving eCommerce experience
                                                                          • Figure 32: Concerns towards service when use social commerce, 2021
                                                                      • Attitudes towards Social Commerce

                                                                        • Community group buying must provide real convenience for Chinese communities
                                                                          • Figure 33: Attitudes on platforms preference when purchasing fresh goods, by ages, monthly personal income and family structure, 2021
                                                                          • Figure 34: Attitudes on purchase triggers when participating in community group buying, by ages, 2021
                                                                          • Figure 35: Attitudes on platform/group leader choice when participating in community group buying, by ages, 2021
                                                                        • Half of consumers prefer to shop around platforms for better prices seeking value for money
                                                                          • Figure 36: Attitudes on social commerce platform loyalty vs price, by ages, 2021
                                                                        • Consumers concerned about privacy disclosure
                                                                          • Figure 37: Attitudes on rejecting invitations when participating in group buying, by gender and monthly household income, 2021
                                                                      • Appendix – Methodology and Abbreviations

                                                                        • Methodology
                                                                          • Abbreviations

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