DUBLIN–(BUSINESS WIRE)–The report “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” has been added to the report from ResearchAndMarkets.com offer.

The social commerce industry in India is expected to grow by 71.5% on an annual basis to reach US$8,258.8 million in 2022.

The social commerce industry is expected to grow steadily over the forecast period, registering a CAGR of 62.4% during the period 2022-2028. The GMV of social commerce in the country will grow from US$8,258.8 million in 2022 to reach US$143,583.3 million by 2028.

The growing digital boom, supported by increased internet and smartphone penetration, is contributing to the growth of social commerce in India. As India’s population becomes increasingly digitally connected, especially untapped tier 2 and 3 cities and rural India, the social commerce market in India is expected to skyrocket over the next four to six quarters. Additionally, the COVID-19 outbreak further fueled the growth of social commerce as people were confined to their homes and spending more time online.

Another factor driving the social commerce space is the changing preferences of GenZ and Millennial consumers and the growing number of consumers wanting more personalized products. With social commerce, brands and retailers can provide personalized products as well as target specific audiences based on their offerings. As a result, the social commerce market in India is poised to grow at high speed due to the high speed adoption of social media platforms.

The social commerce market in India has already started to see an influx of investment from various venture capital (VC), private equity (PE) funds as well as individual investors. Unlike e-commerce, which is characterized by the predominance of a few major players, the social commerce market has already seen the birth of around ten start-ups each year.

Many big brands and names such as Myntra and Facebook have also entered the social commerce market in India, trying to tap into this new trend of shopping through social media platforms. Overall, the market is still in its infancy in India and will reshape the dimensions of the market over the next 24 months.

Leading e-commerce companies are entering the social commerce market in India

The social commerce space is poised for strong growth in India and is attracting the attention of major e-commerce companies. Large retailers, as well as e-commerce companies, are harnessing the potential of social commerce through acquisitions or by creating a different vertical.

• In November 2021, Walmart-owned online fashion retailer Myntra announced its large-scale social commerce expedition. As part of its foray into social commerce, the company has also launched M-Live, a first-of-its-kind interactive and real-time shopping experience for its customers.

• In July 2021, another big Walmart-owned e-commerce, Flipkart, announced the launch of Shopsy, a separate social commerce platform that allows people to start their online business without investment.

• In July 2021, YouTube also entered the commercial space with the acquisition of SimSim which had already raised approximately $17 million prior to the acquisition and was valued at $50.1 million in its series funding round. B 2020. SimSim is a social commerce startup that helps small businesses go e-commerce with videos and creators.

• In a similar vein, in June 2021, Inmobi-backed Glance acquired Shop101 to enter the fast-paced influencer-led social commerce market in India.

Meesho is currently the forerunner of social commerce in India and has already doubled its valuation in 2021 from $2.1 billion in April 2021 to $4.2 billion in September, while raising approximately $570 million in funding As a result, the competition in the social commerce market is constantly increasing with big companies like Flipkart competing against companies like Meesho, SimSim, GlowRoad among several others.

Local start-ups are capitalizing on growing demand for social commerce

The social commerce market is still in its infancy and growing rapidly in India. Many local brands and start-ups have realized the potential of social commerce and have moved quickly to capitalize on this opportunity. Over the past eight quarters, more than a dozen start-ups have emerged whose business revolves around social commerce, including B2B, B2C as well as C2C. Local social commerce start-ups are estimated to have raised over $100 million in funding by having nearly 10 million resellers on board.

• Bikayi – Founded in 2019, caters to SMEs who are struggling to scale their business in the digital world. Within a year, the company’s annual gross merchandise value (GMV) increased by 1,800% and it successfully raised $10.8 million in a Series A funding round.

• KIKO TV – It started as a video sharing platform first, then evolved into an AI-powered social commerce platform, providing an interactive shopping experience for consumers through sharing live videos.

• BIG LIVING is a social commerce venture of the BIG FM radio network launched in November 2021. The BIG LIVING platform connects consumers with artisan brands and designers who believe in sustainable living.

• GogoPogo – Founded in July 2020, is a collaborative social commerce platform that helps individuals and businesses launch online merchandise showcases.

• Dukaan Plus – In November 2021, software as a service (SaaS) provider Dukaan launched a social commerce platform named Dukaan Plus. The platform aims to bridge the gap between merchants and brands and thus help them earn commission.

In time, as social commerce becomes more popular in India, the space will be crowded with big brands that are already eyeing this huge potential market. However, companies backed by big brands like Myntra and Facebook are also trying to jump on the bandwagon of the growing social commerce space but are facing a setback due to their DIY model. Sellers in India, especially in cities and Tier 2 and 3 rural areas, need some support to transition into the digital world. Local start-ups can provide the necessary support and have much more in-depth on-the-ground insights into consumer behavior compared to 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 focus and innovation are becoming survival skills for businesses. As 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 and buyers to interact.

• In 2020, the Facebook family, which includes Instagram and Pinterest, revamped its platforms and added new tools to facilitate social commerce. These tools will help sellers streamline customer shopping experiences, especially during the pandemic. These features also allow retailers to create new storefronts and tours and the number of users visiting it can be increased through paid advertising.

• Similarly, the biggest messaging service WhatsApp is also taking its first steps into the social commerce market by introducing a new feature called Business Profile which allows users to find stores from an in-app directory. This feature was tested in Brazil in September 2021 and is expected to launch in India in 2022.

Scope

India E-Commerce 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

• Clothes and shoes

• Beauty and personal care

• Food and groceries

• Appliances and Electronics

• Home improvement

• Others

India Social Commerce Industry Market Size and Forecast by End-Use Segment, 2019-2028

India Social Commerce Industry Market Size and Forecast by End-Use Device, 2019 – 2028

India Social Commerce Industry Market Size and Forecast by Location, 2019 – 2028

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

• Payment

• Prepaid card

• Digital and mobile wallet

• Other digital payment

• Species

India Social Commerce Industry Market Size and Forecast by Demographics and Consumer Behavior, 2021

• By age

• By income level

• By gender

For more information about this report, visit https://www.researchandmarkets.com/r/43di6v