Has social commerce spread its wings this year?
Growth of social commerce is likely to create new opportunity for millions of resellers and suppliers in next 5 years
1. India’s eCommerce pecking order has changed- a social commerce player is on track to enter the list of top 5 e-tailers in 2020
Top 5 players in Indian eCommerce Market- CY20F, (Gross GMV, $ Bn)
Note: For Large Social Commerce Player, GMV is inclusive of Reseller Margin and Shipping Charges
The growth of this nascent market can be established through the significant growth that it has achieved in the last one year. The market has tripled in one year’s time, ofcourse thanks to the pandemic.
2. Growth of social commerce players is riding on the back of explosive Tier 2+ online shopper growth in India
Along with it, our research shows that tier II cities are driving the major growth for this market. Horizontal players like Flipkart and Amazon are also expected to drive strong growth for this commerce while CAGR is expected to increase by more than 65% in the next five years.
3. Social commerce to continue its rapid growth within India’s ecommerce market
Social commerce is expected to contribute upto 5% of the total e-commerce GMV by CY 2025. This will be mostly driven by leading social commerce players like Meesho, Mall91 among others and also includes video commerce by players like Bulbul, Simsim.
4. Growth of social commerce is likely to create new opportunity for millions of resellers and suppliers in next 5 years
Apart from creating a niche market, this commerce is expected to create millions of job opportunities and enhance the reach of resellers or even first time sellers on social platforms or messengers.
With the right key drivers and direction, the scope of the market in a country like India is huge which is blessed with diverse indigenous art and talent that can be taken far and wide through the channel of social commerce.