Social Media Platforms Lead Social Commerce In India

The social media-led social commerce at the present moment is dominated by international brands such as Facebook, Instagram and WhatsApp
Social Media Platforms Lead Social Commerce In India

India’s social commerce market, pegged at $800 million, is largely driven by social media platforms such as Instagram, Facebook, WhatsApp, Trell, and Chingari.

These platforms dominate 65 percent of the social commerce market in India, the rest lies with e-commerce led platforms such as Meesho, GlowRoad, Dealshare, Shop101, as per a report by consulting firm Wazir Advisors.

What is Social Commerce?

Social commerce is a new-age e-commerce channel of promotion where brands use networking websites Facebook, Instagram and Twitter as vehicles to promote and sell products with their customers. It has emerged in markets such as China and India built as a parallel shopping platform to large e-commerce marketplaces. Also, several models have emerged that include a reseller model, group buying and video commerce.

“The social media-led social commerce at the present moment is dominated by international brands such as Facebook, Instagram and WhatsApp who were also the early movers in this segment. However, the made in India social media apps such as Roposo, Trell, Chingaari, MX TakaTak, Moj most of whom have come up in the last 1- 2 years are also looking to enter the social commerce space to grab the opportunity," Pakhi Saxena, practice head, retail and consumer packaged goods, Wazir Advisors.

These social media channels largely target shoppers in India’s smaller cities and deal with mostly non-branded goods such as apparel, beauty and personal care, footwear, electronics and home utilities, according to the report. Moreover, the pandemic has helped accelerate the move to social commerce channels.

That’s because—large marketplaces are not accessible to shoppers in India’s smallest towns and cities. Additionally, new-age digital first brands are cropping up across categories prompting them to use non-traditional channels such as Facebook and Instagram to market.

While the e-commerce sector reported 45 percent growth in 2020, currently only one out of seven people who have access to internet, shop online, according to the report.

That’s because—large marketplaces are not accessible to shoppers in India’s smallest towns and cities. Additionally, new-age digital first brands are cropping up across categories prompting them to use non-traditional channels such as Facebook and Instagram to market.

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