Social media platforms lead social commerce in India

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

These platforms dominate 65% of the social commerce market in India, the rest relies on e-commerce platforms such as Meesho, GlowRoad, Dealshare, Shop101, according to a report by consultancy firm Wazir Advisors.

What is social commerce?

Social Commerce is a next-generation e-commerce promotion channel where brands use Facebook, Instagram, and Twitter networking websites as vehicles to promote and sell products to their customers. It has emerged in markets such as China and India, built as a buying platform parallel to large e-commerce markets. In addition, several models have emerged including a reseller model, group buying and video commerce.

“Social commerce led by social media today is dominated by international brands such as Facebook, Instagram and WhatsApp, which have also been the early players in this segment. However, India-made social media apps such as Roposo, Trell, Chingaari, MX TakaTak, Moj, most of which have appeared in the past 1-2 years, are also looking to enter the social commerce space to grab the opportunity, ”Pakhi Saxena, Practice Leader, Retail and Consumer Packaged Goods, Wazir Advisors.

These social media channels largely target small town Indian shoppers and mainly deal with unbranded products such as clothing, beauty and personal care, footwear, electronics and home utilities, according to the report. Additionally, the pandemic has helped accelerate the shift to social commerce channels.

This is because the big markets are not accessible to buyers in the smaller towns of India. Additionally, the first digital brands of the new era are appearing in all categories, prompting them to use non-traditional channels such as Facebook and Instagram to market.

While the e-commerce sector grew 45% in 2020, currently only one in seven people with internet access makes purchases online, according to the report.

This is because the big markets are not accessible to buyers in the smaller towns of India. Additionally, the first digital brands of the new era are appearing in all categories, prompting them to use non-traditional channels such as Facebook and Instagram to market.


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