- Social Commerce Startups are working on logistics and delivery mechanism and some are developing their own shipping automated platform as Lack of pin code coverage & ability to track orders on a real-time basis has created a communication gap between buyers & sellers in India.
- Quality Check Mechanism getting improved over time. More quality checks is happening to get more suppliers on board and immediate blacklisting of suppliers is done thereafter. Consequently, a lesser number of order rejections, RTOs, and Returns are observed from customers.
- Unhindered growth in social media usage & the rising number of Smartphone owners is the driving factors for the growing number of orders. Short-form video platforms like TikTok in terms of e-commerce in tier 2 and 3 cities in India, rules over Instagram, tapping local influencers to engage the audience, solving queries, and persuading the users to place the orders.
Enhancing Customer base in Tier 2 & 3 Cities: A higher success rate of the social e-commerce market is seen in pyramidal societies like India that have income disparities. Emerging startups are focusing on adding multiple languages for the non-English speaking populations from India’s mid-tier towns and cities that are majorly relying on video contents on social commerce apps or videos on social media platforms.
Growing Internet Penetration: Increasing internet connectivity & smartphone penetration in Tier 2 and 3 cities drive the major growth in the country. People with access to the internet will reach 840 Mn by the end of 2022 wherein more than half of the population would own a smartphone. Order placement is becoming convenient as even the platforms are shifting from taking orders via websites to Mobile Apps.
Consumer Electronics Orders to increase: Electronics in the last years have seen higher Returns & RTOs. With an increasing number of quality check mechanism in electronics, the trend has changed and people are actually looking forward to the products such as Bluetooth and grooming devices and mobile phones that lies in their budget. Such driving factors will increase the proportion of the Electronics segment in the market.
Analyst at Ken Research in their latest publication “India Social E-Commerce Market Outlook to 2025 – Growing Number of Online Shoppers in Tier 2 and Tier 3 Cities and Rising Number of SMEs to Drive Growth” observed that Rising Internet Penetration, Smart Phone Ownerships, Number of Social Media Users, Lower internet costs and government initiatives to promote digital India will promote the demand for Social E-Commerce in the near future. Social E-Commerce Market in terms of GMV is expected to grow at a CAGR of 33.9% during the period FY’2020 – FY2025.
Key Segments Covered: –
By Product Category
Fashion & Apparel
Home & Kitchen
By Number of Orders
By Mode of Payment
Cash on Delivery
Net Banking, Wallets & UPIs
Debit & Credit Cards
By Device Type
Key Target Audience
Social E-Commerce Companies
Private Equity and Venture Capital Firms
Logistics and Shipment Companies
Social Networking and Media Companies
Horizontal and Vertical E-Commerce Players
Time Period Captured in the Report: –
Historical Period – FY’17- FY’20
Forecast Period – FY’21 – FY’25
Key Topics Covered in the Report: –
India Social E-Commerce Market Introduction
India Social E-Commerce Market Size
India Social E-Commerce Market Segmentation
India Social E-Commerce Market Future Outlook
India Social E-Commerce Market Future Segmentation
Issues and Challenges
Company Profile of Major Social Commerce Startups (Product Portfolio, User Base, Geographical Presence, Suppliers & Resellers, Current & Future Strategy, Logistics and Technological Partners)
Success and Failure Case Study
India Social Media Players Snapshot
For More Information on the research report, refer to below link: –
Related Reports by Ken Research: –
Taiwan E-Commerce Market Outlook to 2023 – Online Retail (By Product Categories, By Desktop and Mobile, By Gender); Online Travel (By Intermediary and Direct Online Sale and By Desktop and Mobile); Online Payment Gateway Market
UK E-Commerce Market Outlook to 2025 – Online Retail (By Product Categories, By Desktop and Mobile Transaction Type, By Gender and By Mode of Payment); Online Travel (By Intermediary and Direct Online Sale and By Desktop and Mobile Booking Type); Online Advertising (By Desktop and Mobile Ad Spend, By Type of Advertising, By Type of Display Advertising, By Sectors and By Advertising Model); Online Movie Ticket Booking; Video Streaming; Music Streaming and Online Gambling
Contact Us: –
Ankur Gupta, Head Marketing & Communications