Title Soti - Industry report the rise of social commerce turning tech - driven browers into influenced buyers.pdf ✅

TABLE OF CONTENTS WELCOME NOTE Methodology Key Findings The Rise of Social Commerce: Shopping Meets Social Media The Buying Journey: Personalization at a Crossroads Protecting Consumer Data: A Non-Negotiable for Retailers Conclusion Over the past five years, SOTI has researched the retail sector to uncover how the sector is transforming and adopting technology both in-store and online, as well as the key drivers influencing these decisions. Our 2022 report, From Clicks to Ships: Navigating the Global Supply Chain Crisis, identified how buyer behaviors have shifted based on key global events that altered how, where and when people shop. By 2023, evidence suggested 46% of shoppers would rather shop online than in-store. This trend emphasized the growing strength of e-commerce and confirmed that the hybrid shopping model—combining in- store and online experiences, also known as omnichannel—was here to stay. Fast forward to 2025, this year's retail report reveals that today’s consumers are leveraging emerging technologies and new purchasing channels more than ever, expecting retailers to step up their game on data privacy and security. An underlying theme is that consumers want more than just a transactional relationship, they crave transparency and personalization. They expect clear insights into their orders and personal data, along with support that is readily available, regardless of the channel used. This report also highlights the growing popularity of social commerce as a retail channel, where brands harness the power of social media and influencers to showcase their products on a variety of social platforms, such as Instagram and TikTok, to reach their audiences 24/7. However, this trend is not without its own unique set of challenges that retailers must tackle head-on. For the first time, Japan is included in our retail research as we explore the three key themes shaping retail in 2025: the rise of social commerce, the growing demand for AI-driven personalization and the need for retailers to adopt a security-first approach— particularly with payments across social platforms. The data suggests retailers should look at all the technology gaps, both in-store and online, to better guide and support consumers. By doing so, innovative retailers can foster loyalty regardless of where and how their prospective consumers shop. 2 THE RISE OF SOCIAL COMMERCE: TURNING TECH-DRIVEN BROWSERS INTO INFLUENCED BUYERS 2025 3 Stephanie Lopinski, VP, Global Marketing
SOTI’s 2025 retail report surveyed 12,000 consumers, aged 18 to 65, across 10 countries to uncover key insights into the evolving retail landscape. The core markets included 2,000 respondents in the U.S. and the UK, and 1,000 respondents in Canada, Mexico, Germany, France, Sweden, the Netherlands, Australia and Japan. U.S. CANADA MEXICO FRANCE GERMANY NETHERLANDS AUSTRALIA JAPAN SWEDEN UK METHODOLOGY 4 THE RISE OF SOCIAL COMMERCE: TURNING TECH-DRIVEN BROWSERS INTO INFLUENCED BUYERS 2025 5
KEY FINDINGS of consumers worry about data security when shopping on social media. 67% of consumers prefer personalized recommendations from retailers based on past purchases, a significant increase from 30% last year. 64% of consumers prefer to shop with online retailers that use technology to personalize their shopping experience. 52% of consumers will not mind if retailers use AI to deliver a more personalized shopping experience. 50% of consumers support using AI for better in-store product recommendations. 47% of Gen Z respondents say purchasing items advertised on social media is a great way of keeping up with the latest trends. 62% of consumers have at least one concern about entering personal details online or into in-store devices. 82% of consumers prefer shopping with retailers that provide a personalized service. 60% of those shopping via social commerce say they experienced at least one issue, such as long delivery times and poor communication. 73% 6 THE RISE OF SOCIAL COMMERCE: TURNING TECH-DRIVEN BROWSERS INTO INFLUENCED BUYERS 2025 7