India Social Commerce Market Report 2022: Market is Expected to Grow by 71.5% to Reach $8,258.8 Million in 2022 - Forecast to 2028
DUBLIN, May 10, 2022 /PRNewswire/ -- The "India 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 - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
Social commerce industry in India is expected to grow by 71.5% on annual basis to reach US$8,258.8 million in 2022.
The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 62.4% during 2022-2028. The social commerce GMV in the country will increase from US$8,258.8 million in 2022 to reach US$143,583.3 million by 2028.
The growing digital boom, backed by higher internet and smartphone penetration is aiding the growth of social commerce in India. As the Indian population becomes more digitally connected especially the untapped tier-2 and 3 cities and rural India, the social commerce market in India is expected to skyrocket in the next four to six quarters. Moreover, the outbreak of COVID-19 has further fueled the growth of social commerce as people were confined to their homes and spending more amount of time online.
Another factor that is driving the social commerce space is the changing consumer preference of GenZ and millennials and the growing number of consumers wanting more customized products. With social commerce brands and retailers can provide customized products as well as target specific audiences according to their offerings. As a result, the social commerce market in India is poised to grow at a high-speed owing to the high-speed adoption of social media platforms.
The social commerce market in India has already started witnessing an inflow of investment from various venture capital (VCs) funds, private equity (PE) as well individual investors. Unlike e-commerce which is characterized by the dominance of a few large players, the social commerce market has already seen a dozen of start-ups coming up every year.
Many big brands and names such as Myntra and Facebook have also entered the social commerce market in India, trying to tap the capitalize of this new trend of buying through social media platforms. Overall, the market is still in the nascent stage in India and will reshape the market dimensions in the next 24 months.
Leading e-commerce commerce companies are entering the social commerce market in India
The social commerce space is poised for strong growth in India and is gaining the attention of large e-commerce companies. Large retailers, as well as e-commerce companies, are tapping on the potential of social commerce through acquisitions or creating a different vertical.
- In November 2021, Walmart-owned online fashion retailer Myntra announced its expedition into social commerce at scale. As part of its foray into social commerce, the company also launched M- Live, a first-of-its-kind interactive and real-time shopping experience for its customers.
- In July 2021, another Walmart-owned e-commerce major Flipkart announced the launch of Shopsy, a separate platform for social commerce which enables people to start their online business without investment.
- In July 2021, YouTube also entered the commerce space with the acquisition of SimSim which had already raised about $17 million before acquisition and was valued at $50.1 million in its 2020 Series B financing round. SimSim is a social commerce start-up that helps small businesses to move to e-commerce with videos and creators.
- On similar lines, in June 2021, Glance which is backed by Inmobi acquired Shop101 to enter the fast-paced influencer-led social commerce market in India.
Meesho is currently the forerunner in social commerce in India and has already doubled its valuation in 2021 jumping from $2.1billion in April 2021 to $4.2 billion in September while raising around $570 million in Series F funding. As a result, the competition in the social commerce market is steadily rising with large companies like Flipkart taking on the head on head with companies like Meesho, SimSim, GlowRoad among several others.
Homegrown start-ups are capitalizing on the growing demand for social commerce
The social commerce market is still in its nascent stage and is evolving rapidly in India. Many homegrown brands and start-ups have realized the potential of social commerce and have quickly moved in to capitalize on this opportunity. Within the last eight quarters, more than a dozen of start-ups have popped whose business revolves around social commerce, including B2B, B2C as well as C2C. According to the estimates, homegrown social commerce start-ups have raised more than $100 million in funding by having nearly 10 million resellers on board.
- Bikayi - Founded in 2019, caters to SMEs who find it difficult to scale their business in the digital world. Within one year, the company's annual gross merchandise value (GMV) grew 1, 800% and it successfully raised $10.8 million in a Series-A funding round.
- KIKO TV - It initially started as a video sharing platform and then turned into social commerce platform powered by AI, providing an interactive shopping experience to consumers through live videos sharing.
- BIG LIVING is a social commerce venture by radio network BIG FM launched in November 2021. The BIG LIVING platform connects consumers to artisans' brands and designers who believe in sustainable living.
- GogoPogo - Founded in July 2020, is s a social commerce cum collaborative platform that helps individuals and businesses to launch online merchandise storefronts.
- Dukaan Plus - In November 2021, software-as-a-service (SaaS) provider Dukaan launched a social commerce platform named Dukaan Plus. The platform aims at bridging the gap between merchants to brands and thus helping them earn a commission.
With time, as social commerce becomes more popular in India, the space will get cluttered with big brands already eyeing this huge potential market. However, companies backed by big brands such as Myntra and Facebook are also trying to get on the bandwagon of the growing social commerce space but are facing a setback due to their do-it-yourself model. The sellers in India, especially from tier 2 & 3 cities and rural areas, require some support to transition into the digital world, The local start-ups can provide the required support and have much deeper on-ground insights on consumer behavior versus big brands, and this is crucial if a company wants to penetrate the local markets of India.
Social media platforms are adding new features to take advantage of the growing social commerce market
To gain a competitive edge in the social commerce space, customer-centricity and innovation are becoming survival skills for businesses. As more and more start-ups enter the market trying to disrupt the market with new ideas, existing players also need to be creative and innovate to introduce new features to differentiate themselves. With the growing popularity of social commerce, social media platforms are also adding new features to make it easier for sellers as well buyers to interact.
- In 2020, the Facebook family which includes Instagram along with Pinterest revamped their platforms and added new tools to aid social commerce. These tools will help sellers to streamline the customer's shopping experiences, especially during the pandemic. These features also allow retailers to create new storefronts and viewing and the number of users visiting it can be increased through paid advertising.
- Similarly, the largest messaging service WhatsApp is also tipping its toes in the social commerce market by introducing a new feature called Business Profile which allows users to find shops from a directory within the app. This feature was being tested in Brazil in September 2021 and is expected to be launched in India in 2022.
Scope
India Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
India Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
India Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2019-2028
- Clothing & Footwear
- Beauty and Personal Care
- Food & Grocery
- Appliances and Electronics
- Home Improvement
- Others
India Social Commerce Industry Market Size and Forecast by End Use Segment, 2019-2028
- B2B
- B2C
- C2C
India Social Commerce Industry Market Size and Forecast by End Use Device, 2019-2028
- Mobile
- Desktop
India Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Domestic
- Cross Border
India Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Tier-1 Cities
- Tier-2 Cities
- Tier-3 Cities
India Social Commerce Industry Market Size and Forecast by Payment Method, 2019-2028
- Credit Card
- Debit Card
- Bank Transfer
- Prepaid Card
- Digital & Mobile Wallet
- Other Digital Payment
- Cash
India Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour, 2021
- By Age
- By Income Level
- By Gender
For more information about this report visit https://www.researchandmarkets.com/r/5opw32
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