How Social Commerce is Helping Automotive Industry in India to Move from Interaction to Transaction
How Social Commerce is Helping Automotive Industry in India to Move from Interaction to Transaction

The economic effects of the COVID-19 pandemic on India have been extremely harmful. The Reserve Bank of India modified India's gross domestic product (GDP) projections from 10.5 percent to 9.5 percent in FY22. The car business, including the post-retail, lost revenue worth billions.

India has adjusted well to social media, progressively during the pandemic. Indian users today make up a huge part of social media worldwide and are also a key objective market in the post-pandemic era. Social media plays a vital part in affecting individuals' preferences, opinions, and needs.

The Covid-19 pandemic has sped up the Indian online business industry by 10 years, upsetting the activities, plan of action, and client shopping experience. All factors have achieved a change in perspective in the automotive aftermarket. With the developing inclination for digitalization by industry members, expanding utilized vehicle market, vehicle parc, and the ongoing social distancing practices, commerce is expected to develop to Rs 2,500 crore by catching 2.5 percent of the complete aftermarket 2030.

The general Indian aftermarket was assessed to be worth about Rs 72,552 crore in FY20 and was estimated to outperform Rs 75,000 crore by FY21. However, because of the worldwide pandemic, the market declined by around 25 percent to Rs 54,414 crore in FY21. The aftermarket is supposed to resuscitate in FY22 and develop by around 15 percent to Rs 62,576 crore. With the developing trade-in vehicle market, vehicle parc, expanding vehicle proprietorship in semi-metropolitan and rural markets, and growing wellbeing standards and guidelines, the overall market is supposed to grow by Rs 100,000 crore by FY30.

Broadly speaking, social commerce is the method involved with selling items straightforwardly via virtual social media stages like Facebook, WhatsApp, Twitter, and Instagram. The sheer number of trades on Facebook is a declaration of the way that web-based socializing and web-based shopping make an exceptionally viable pair. By 2025, India's online business market is projected to be $220 billion, while social trade might possibly develop to contact upwards of $50 billion concerning GMV.

Between 2015 and 2020, smartphone usage in India has grown more than five times. Simultaneously, the data usage charges have dropped to one-tenth. As of 2020, 30 out of every 100 people have a smartphone and affordable data. India has 400 million WhatsApp users, of which a whopping 80 percent are active weekly. India boasts of having the largest number of Facebook users in the world. Instagram usage is fast catching up. Indian reselling apps have entirely steered clear of the multi-level structure and do not require resellers to recruit more resellers under them.

India is witnessing the power of bringing together e-commerce and social media. Social commerce already accounts for nearly 13 percent of all online retail sales taking place in the country. It has proved to be an effective channel for reaching underserved consumers and for giving small and medium-size businesses an affordable and simple way to create an online presence.

Social commerce has likewise been introduced as a financial savvy for bigger businesses and brands reeling under the tension of mounting client procurement costs and attempting to shield these valuable clients from contenders charming them unendingly with profound limits. Social commerce, because of its close association with social media, enjoys innate benefits with regard to engaging and retaining customers.

Social commerce will likewise see a more noteworthy reception of client-created content-driven advertising as shoppers will generally believe client-produced content considerably more than customary showcasing. Voice and vernacular language will be significant variables that will assist with accomplishing further infiltration in this fragment. While there are existing and emerging companies in the area, there are still huge blank areas that exist, that make the area appealing.

Stay on top – Get the daily news from Indian Retailer in your inbox
Also Worth Reading