Social commerce in India to be $7b opportunity by 2025

Photo: Pixabay

The social commerce segment, which includes startups such as Meesho, Mall91, Shop101, Dealshare, and Bulbul, is expected to be a $7 billion opportunity and contribute at least 5% of the overall e-commerce market by fiscal year 2025, according to data from management consultancy Redseer.

Close to 80% of shoppers on social commerce platforms come from towns and cities beyond the top metros. While for horizontal platforms, including Flipkart and Amazon India, almost 40% of their customer base comes from top metros, the remaining 60% shoppers are from non-metro towns.

“Different from other major e-commerce players, social commerce players are seeing the most growth from tier-II cities. From the $38 billion e-commerce industry in 2020, it is estimated that the entire e-commerce industry will grow up to $140 billion by 2025 and major social commerce players will contribute at least up to 5% by then,” said Redseer.

According to Redseer, there are three kinds of social commerce models currently prevalent: the reseller model, group buying and live commerce. Reseller model currently is the largest; it allows resellers to sell products from suppliers, with social commerce platforms taking care of shipment and logistics.

The total reseller market in India was pegged at $600 million in 2020, according to Redseer.

“Resellers often prefer to join social commerce platforms to earn some extra money apart from their usual income, and also find personal recognition among customers and resellers as the platforms bring everyone together. Interestingly, many resellers in metros and tier-I cities also join these platforms to create a personal identity so as to become an influencer in respective communities,” added the management consultancy.

Further, the growth of e-commerce in tier-II towns and cities, post the pandemic is also providing tailwind to India’s social commerce sector.

When it comes to categories, the social commerce sector has deeply penetrated into wear and accessories, which are largely unbranded and have low ticket size.

Currently, fashion dominates the sales on these social commerce platforms, with significant potential for home furnishing, costume jewellery and electronics accessories, to grow on these platforms among tier-II shoppers, said the management consultancy.

The article was first published on livemint.com 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.