Social commerce has come a long way. With Meesho joining the unicorn club, the sector has proven its potential in a very short span of time. Although under the umbrella of ecommerce, social commerce brought in a new paradigm with communities coming together, resellers finding a platform, indigenignous products coming to the forefront and much more. On the other hand, customers prefer social commerce to feel connected with the community which makes shopping more fun. They also feel it’s cheaper compared to other e-commerce websites and offline stores. Here are a few insights on how social commerce has emerged and what the future holds

1. Social commerce models of 2020

Social Commerce Models in India- Summary

Currently, there are three types of social commerce model which includes reseller model, group buying and live commerce. While the reseller model currently is the largest, group buying and live commerce is still nascent in India.

2. Growth of social commerce players is riding on the back of explosive Tier 2+ online shopper growth in India

Different from other major e-commerce players, social commerce players are seeing the most growth from tier 2 cities. From CY 2020 $38 billion e-commerce industry, it is estimated that the entire e-commerce industry will grow upto $140 billion by CY2025 and major social commerce players will contribute at least upto 5% by then.

3. Social commerce models have made biggest inroads till date in Indian wear and accessories market

So far, the sector has deeply penetrated into wear and accessories which are largely unbranded and have low ticket size. Unbranded, high frequency and low ASP categories are the key product categories sold on Social Commerce platforms owing to the strong value proposition for Tier 2+ shoppers. Currently, fashion dominates the sales on these platforms, however, there is significant potential for home furnishing, costume jewellery and low ASP electronics accessories.

4. Social commerce to create opportunities for millions of resellers and suppliers in the next 5 years

The sector has massively grown in a short span of time with various players betting on different strategies. Going forward, this sector will create many opportunities for the resellers who many a time find it difficult to position themselves on horizontal platforms among other global brands.

5. Resellers earn extra and seek personal recognition through social commerce

Q: What was the major reason for you to become a reseller? % of respondents, N = 242, Surveys conducted in Dec’20

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 all together. Interestingly, many resellers in metros and tier 1 cities also join these platforms to create a personal identity so as to become an influencer in respective communities.

This sector although is comparatively still nascent, has already shown a lot of scope and created many opportunities. It will undoubtedly continue to steadily grow in the next coming years as it matures and builds an entire ecosystem around it.


  • Rohan Agarwal has been a part of the Redseer Strategy Consultants journey for over six years. He is an expert in digital strategy for traditional corporates and start-ups.