United Arab Emirates Social Commerce Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q3 2024 Update

United Arab Emirates Social Commerce Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q3 2024 Update

According to PayNXT360, social commerce industry in United Arab Emirates is expected to grow by 22.7% on annual basis to reach US$1,226.57 million in 2024.

The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 18.3% during 2024-2029. The social commerce GMV in the country will increase from US$999.73 million in 2023 to reach US$2,838.54 million by 2029.

Social commerce in the United Arab Emirates is rapidly evolving, driven by changing consumer behaviours and technological advancements. Brands increasingly leverage social media platforms to engage with consumers, create immersive shopping experiences, and drive sales. The rise of live shopping, enhanced personalization through data analytics, and the importance of user-generated content are shaping the future of social commerce in the UAE. As the market grows, retailers must remain agile and innovative to capitalize on emerging opportunities and navigate the competitive landscape effectively.

Social commerce is rapidly gaining traction in the United Arab Emirates (UAE), driven by the country's high internet penetration and social media engagement.

Identify Key Trends and Developments in Social Commerce

• Embracing Social-Media as a Shopping Channel - The UAE is witnessing a significant shift toward using social media as a primary shopping channel. Platforms like Instagram, Facebook, and TikTok are becoming essential for consumers to discover and purchase products. With a high percentage of the population engaging with social media, these platforms are increasingly recognized as legitimate avenues for retail transactions.

• Rise of Live Shopping Events - Live shopping is a popular trend in the UAE, where brands host interactive events on social media platforms. These live streams allow brands to showcase products in real time, engage with viewers, and drive immediate sales. This format enhances consumer interaction and creates a sense of urgency, encouraging purchases during the live event.

• Targeting Younger Demographics - Millennials and Gen Z are at the forefront of social commerce growth in the UAE. These younger consumers are more inclined to engage with brands on social media and make purchases directly through these platforms. Brands are adapting their marketing strategies to resonate with this demographic, focusing on authenticity, community engagement, and visually appealing content.

• Personalization Through Data Analytics - Data-driven personalization is becoming crucial in social commerce. Brands leverage analytics to understand consumer behaviour and preferences, enabling tailored recommendations and targeted marketing strategies. This approach enhances customer engagement and improves conversion rates, making shopping experiences more relevant to individual users.

• Increasing Importance of User-Generated Content - User-generated content (UGC) is vital to successful social commerce strategies. Brands encourage customers to share their experiences and product reviews on social media, providing authentic content that serves as social proof. Featuring UGC in marketing campaigns builds trust and credibility, driving consumer interest and sales.

Explore New Platforms and Partnerships

• TikTok's Expansion into Social Commerce - TikTok is rapidly becoming a significant player in the UAE's social commerce landscape. The platform has introduced features that allow users to shop directly from videos, enhancing the shopping experience. TikTok's collaboration with Shopify enables merchants to create shoppable posts, streamlining the purchasing process for users and expanding their reach.

• WhatsApp Business Integration - WhatsApp is becoming increasingly popular as a social commerce platform in the UAE. Integrating payment functions and product discovery features allows businesses to facilitate purchases directly within the app. This development creates a seamless shopping experience for users and highlights the potential for further alliances in the social commerce space.

• Instagram's Enhanced Shopping Features - Instagram continues to enhance its shopping capabilities with features like Instagram Checkout and shoppable posts. These tools enable brands to sell products directly through their profiles, reducing the need for users to navigate away from the app. The platform's emphasis on visual content aligns well with consumer preferences, making it a powerful channel for social commerce.

• Shopify's Partnership with TikTok - In 2023, Shopify partnered with TikTok to enhance social commerce capabilities. This collaboration allows Shopify merchants to create shoppable posts directly on the TikTok platform, enabling users to purchase products without leaving the app. This partnership exemplifies the growing integration of e-commerce and social media.

• Emerging Startups and Innovative Solutions - Numerous startups are emerging in the UAE to cater to the growing demand for social commerce. For example, Zbooni, a Dubai-based start-up, provides brands and retailers with tools to facilitate social commerce transactions. By offering a platform that simplifies the buying and selling process on social media, Zbooni is addressing the needs of consumers and businesses in the region.

Identify Key Sectors Adopting Social Commerce

• Fashion and Beauty - The fashion and beauty sectors are leading the UAE's social commerce adoption. Brands leverage platforms like Instagram and TikTok to showcase products through influencer partnerships and visually appealing content. The emphasis on aesthetics and personal expression resonates strongly with consumers in these categories, driving engagement and sales.

• Food and Beverage - The food and beverage industry embrace social commerce by promoting products and engaging with consumers through social media. Brands share recipes, cooking tips, and user-generated content to foster a community around their products, driving engagement and sales. This approach enhances brand loyalty and encourages repeat purchases.

• Home Goods and Décor - The home goods sector increasingly utilizes social commerce to reach consumers interested in home improvement and decor. Brands are showcasing products through engaging content on social media, tapping into the growing interest in home aesthetics, especially in the wake of the pandemic. This sector's focus on lifestyle resonates well with social commerce principles.

• Health and Wellness - The health and wellness sector is leveraging social commerce to connect with consumers seeking fitness and wellness solutions. Brands use social media to share informative content, promote products, and engage with health-conscious audiences. This alignment with consumer interests positions health and wellness brands favourably in social commerce.

Highlight Key Major Acquisitions

• Naspers' Investment in Meesho - In 2021, Naspers, a South African multinational internet and media group, invested significantly in Meesho, India's leading social commerce platform. This investment highlights Naspers' confidence in the growth potential of social commerce in emerging markets and its commitment to expanding its presence in the sector.

This report provides a detailed data centric analysis of social commerce industry, covering market opportunities and risks. With over 50+ KPIs at country level, this report provides a comprehensive understanding of social commerce market dynamics, market size and forecast, and market share statistics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of social commerce in United Arab Emirates. Below is a summary of key market segments:

United Arab Emirates Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2020-2029

United Arab Emirates Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2020-2029

• United Arab Emirates Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2020-2029 Clothing & Footwear Beauty and Personal CareFood & GroceryAppliances and Electronics Home Improvement Travel Hospitality

• United Arab Emirates Social Commerce Industry Market Size and Forecast by End Use Consumer Segment, 2020-2029B2BB2CC2C

• United Arab Emirates Social Commerce Industry Market Size and Forecast by End Use Device, 2020-2029 Mobile Desktop

• United Arab Emirates Social Commerce Industry Market Size and Forecast by Location, 2020-2029 Domestic Cross Border

• United Arab Emirates Social Commerce Industry Market Size and Forecast by Location, 2020-2029Tier-1 CitiesTier-2 CitiesTier-3 Cities

• United Arab Emirates Social Commerce Industry Market Size and Forecast by Payment Method, 2020-2029 Credit Card Debit Card Bank Transfer Prepaid Card Digital Card Digital CardDigital & Mobile WalletOther Mobile Wallet Other Digital PaymentCash Mobile Wallet Other Digital Payment Cash

• United Arab Emirates Social Commerce Industry Market Size and Forecast by PlatformsVideo CommerceSocial Network-Led CommerceSocial ResellingGroup BuyingProduct Review Platforms

• United Arab Emirates Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour,2023By AgeBy Income LevelBy Gender

Reasons to buy

• In-Depth Insight into Social Commerce Market Dynamics: Gain a comprehensive understanding of social commerce market opportunities and significant trends, alongside projections for the 2020 to 2029 period. This insight is crucial for businesses looking to thrive in the expanding social commerce landscape.

• Detailed Analysis of Opportunities by End-Use Sectors: Investigate the market dynamics within various end-use sectors to identify and evaluate emerging opportunities. This analysis enables businesses to tailor their strategies effectively and capitalize on growth potential in the social commerce market.

• Formulate Targeted Social Commerce Strategies: Identify key growth segments and target specific opportunities to develop an effective social commerce strategy. Evaluate market-specific trends, drivers, and risks to ensure your approach aligns with consumer behaviors and preferences, ultimately enhancing engagement and conversions.