Social media is proving to be a major influence on consumer spending in the UAE, with a new study revealing that 48% of Gen Z and Millennial shoppers would be open to buying products or services through such online platforms in the future.

According to a survey conducted by Snap Inc., Havas Media Network and Dynata, Next Gen shoppers across several countries, including the UAE, were opting for social commerce over traditional spending methods.

The survey, titled ‘The Next Gen Social Commercial Playbook’, revealed that when shopping online, 49% of social media users in the UAE involved their friends in the buying process by sharing pictures and discussing potential product purchases.

Social media also proved particularly beneficial for relatively unknow brands in the country, with 54% citing that they were able to discover new products and services through the help of such online platforms. Another 50% revealed that product reviews and recommendations on social media greatly influenced their spending.

Rise of social commerce

According to last year’s Future of Shopping and Social Commerce report by Accenture, social commerce sales are expected to hit USD $492 billion globally this year. Deloitte Global puts that number much higher, predicting that the market for social commerce will surpass USD $1 trillion globally in 2023.

With an expected 5 billion social media users worldwide in 2023, the social commerce market is growing faster than traditional e-commerce, according to Deloitte.

A 2023 report by Global Payments, Commerce and Payments Trends sheds further light on this thriving landscape, with findings revealing that 52% of businesses worldwide plan to sell directly through social networks.

“Our research found that 64% of Gen Z and Millennials have made a purchase through social media in the past year – these younger audiences embrace social commerce, and with this report we sought their input on how we can create a more meaningful and engaging social commerce journey,” stated Seema Patel, Global Managing Director, Mx Intelligence, Havas Media Network.

In the UAE, apparel shopping has emerged as the most prevalent type of online buying among Gen Z and Millennials with the playbook revealing that 93% of social media users in the country had made an apparel purchase via social media. Another 78% of UAE apparel buyers noted the importance of virtual try-on features in making a purchase decision.

The study further revealed that video formats are the most effective, with over half of Next Gen engaging with video ad formats (52%) versus carousel (31%) or static image formats (26%). In general, branded content is preferred over sponsored content however this varies according to the category.  Branded content resonates more for apparel (69%) and luxury (61%) compared to personal care (53%).

Another key finding revealed that more than one third of Next Gen consumers have used Augmented Reality or AR and 61% agree they would be more likely to purchase a product after an AR experience. This rang true across all markets, with a higher likelihood in India (83%), Mexico (81%) and UAE (75%).

Across the findings of this study, six overarching principles emerged to create meaningful shopping experiences for the Next Gen: personalisation, authenticity, ubiquity, trust, entertainment and convenience.

(Writing by Bindu Rai bindu.rai@lseg.com; editing by Seban Scaria)