The Rise of Social Commerce in the Indian Retail Industry

Authored by Prerna Goel, CMO and Co-founder of WhizCo

Social media continues to adapt and evolve to changing consumer trends in today's world. Over the last 15-20 years, we have seen a drastic difference in the way people used to shop things and do so now. And the ever-changing digital landscape has helped us make a progressive leap from just a few online stores to super eCommerce websites. With all the digital advancements in the world of technology, we have witnessed so many changes to the retail industry in the last few years.

And then 2020 happened. The COVID 19 Pandemic changed the way we imagined our lives and has also significantly affected the retail industry around the world, giving birth to several trends, most notably “Social Commerce”.

Social commerce has been the hottest buzz phrase in the retail industry and one of the retail Industry’s break-out stars over the last few years. The Pandemic made consumers discover new ways to shop, and brands, too, were compelled to find new ways to reach out to consumers and sell goods and services. Needless to say, the internet and social media platforms acted as a catalyst in both scenarios and continue to do so. Amid the lockdowns, e-commerce made it possible for consumers to access products and services and helped brands embrace e-commerce around the world to make sales. It is helping individuals turn into entrepreneurs and business owners by assisting them to leverage interactions happening through social networks- a trend that is picking up in India recently.

“Social Commerce in India is still a growing concept but has seen significant growth in the last few years alone, and it’s not hard to see why. A number of massive players are quickly scaling up in the market, like Meesho, and more and more brands are now focusing their initiatives towards social commerce”, said Prerna Goel, Co-Founder, and CMO, WhizCo, a leading Delhi based influencer marketing and creator management agency.

WhizCo is glad to have its share in supporting the growth of Social Commerce in India. “We have worked with several big players in the industry for several social and live commerce projects. We have worked with Moj in association with Flipkart and leading short-video apps Roposo and Trell to name a few.”, added Prerna.

Further commenting on the Indian Social Commerce industry, she said, “The growth of social commerce definitely received a massive push due to the rise in suggestion-based shopping and influencer and creator-led live commerce in the country, which contributes to a rich and fresh shopping experience for consumers at the comfort of their homes The Covid-19 pandemic that shifted our lives online, the “Digital India” initiative, the number of growing smartphone users and increasing Internet penetration in the country helped boost social commerce in India, and it’s going to see amazing growth in the coming years.”

In FY20, the Indian social commerce industry was worth $1.5–2 billion, and as per a 2021 Bain & Company report, it has the potential to grow to $16–20 billion in FY25. And the growing number of Internet users in the country further fuels the social commerce scenario in India. India has the second-highest number of internet users in the world. With over 340 million active internet users, India has a tremendous potential to become the next hotspot for live commerce after China. And similar trends have been seen in rural India. By 2025, India will have more internet users in the rural sector than in the urban areas.

The percentage of Millennials and Gen Z (the most extensive customer base of online businesses) internet users in the country is also solid. Since these age groups are familiar with and motivated by content on social media and online experiences, they also tend to engage with social commerce more often and find it convincing enough to give it a try-which further helps the rise of Social Commerce in India.

Social Commerce in India profited from the ‘new normal’ trends, and unlike just a trend, it is definitely here to stay and is no way on its way out. The “humanness” and instant gratification achieved from Social Commerce, along with the idea of “Digital India,” will surely drive more growth for the sector.