Chinese Social Commerce


An introduction to Social Commerce in China.

1️⃣ What is social commerce?
Social commerce is a form of e-commerce that incorporates social media and other online platforms to enable social interaction and user-generated content to aid in the buying and selling of products and services.

2️⃣ Market size in China and in Western Europe
In 2023, according to a recent Deloitte report, the Chinese social commerce market is projected to make up approximately 79% of all retail social commerce sales, while Western Europe’s market accounts for just 0.3%. These figures highlight the vast disparity between the two regions in terms of social commerce adoption. In 2022, an impressive 84% of Chinese internet users shopped through social commerce channels compared, for example, to 48% in Germany during the same period.

3️⃣ Social commerce platforms in China
Social commerce in China can be broadly categorized into two main types: user-generated content platforms and group buying platforms. User-generated content platforms create an engaging environment that attracts viewers, content creators, and potential buyers. On the other hand, group buying platforms allow users to register with the intent to purchase products at a special price within their network.In 2020, the most popular user-generated content platforms in China were Douyin, Kuaishou, and Xiaohongshu. These platforms leverage social media features to create interactive content that encourages users to share their experiences and opinions.
Meanwhile, the leading group-buying platforms in China are Pinduoduo and Jingxi. These platforms leverage the power of collective purchasing to offer significant discounts on products and services.

The vast size and widespread adoption of social commerce platforms in China make it a crucial opportunity for businesses looking to expand their reach. By leveraging social commerce, companies can tap into a highly engaged pool of Chinese consumers, making it a powerful tool for reaching this lucrative market.

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