Mumbai: Social commerce refers to the use of social media platforms facilitated by popular content creators and influencers to help users through the purchase journey from brand discovery to checkout, for small businesses and entrepreneurs to large-scale multinational corporations alike. The social commerce market is growing rapidly in India as more and more people are joining social media by the day. About 70 per cent of the Indian population is estimated to be present on social media today. This trend, along with a high preference for online shopping, has led to the emergence of social commerce as a big market in India.
Indiantelevision.com caught up with some industry experts to understand how social commerce is taking shape in the country, the issues that are hindering its growth and more.
The social commerce market in India currently stands at eight billion dollars and is projected to reach a whopping $80 billion by the year 2030, with a massive compound annual growth rate (CAGR) of 55-60 per cent.
In India, social media platforms like Facebook, Instagram, and new age platforms such as Woovly, Meesho and SimSim have become popular channels for social commerce. Many Indian consumers are using these platforms to browse and buy products directly from sellers. We will also see a lot of bigger players getting into this space.
Raghav Bagai, co-founder of Sociowash is of the opinion, “The pandemic contributed to the growth of social commerce in India, as more people have turned to online shopping due to lockdowns and restrictions on physical retail. Social commerce allows small businesses and entrepreneurs in India to reach new audiences and sell their products directly to them, bypassing traditional retail channels. It has also made it easier for consumers to discover and support small businesses, and entrepreneurs, and has helped to drive the growth of e-commerce in the country.”
AnyTag business head Shuchi Sethi believes that influencer-led social commerce will be holding a lot of value in the coming future. “Influencers in themselves will be coming brands and social commerce with that combination would be deadly. Tier II, III and IV are very lucrative and yet aspirational markets and hence this space will grow tremendously,” she expresses.
A senior spokesperson from Wavemaker says, “The need to shorten the funnel and move consumers from awareness to conversion in a fast and frictionless way has been echoed by many brands. The best way to do this is through social commerce. Both social media and e-commerce platforms are making investments to provide businesses with the chance to design content that can affect consumer purchasing decisions.”
With the growing use of digital, the relevance of social commerce in today’s times
Sethi of AnyTag puts the basics in place, “The growing use of digital is actually when social commerce is relevant. There would be no social commerce if there was no digital. Moving 10 years back when we were just growing in digital, who would have thought about something like social commerce? India is an evolved market when it comes to the consumer base and the population using digital. Every nook and corner of this country is digitally equipped and understands how to use social media.”
Mitesh Kothari co-founder and chief creative officer White Rivers Media understands that social media in India is widespread currently, and thus, has the potential to reach customers from any part of the country.
He points out, “Statistics suggest about 27 per cent of social media users visit their preferred social platform just to explore products to buy. User expectations from brands are increasing as technology is advancing, and the same is being addressed promptly to keep the wheel rolling. Some brands have already come up with modern AI-powered features that customers can use to have a real try-on experience. Social commerce is also helping build brand awareness and connect with potential buyers at a personal level.”
Henkel Beauty Care India head of marketing Shama Dalal emphasises, “Shoppers that make up a significant critical mass are netizens housed on super-relevant platforms like Instagram and other networks. The content creator universe on the other hand has become hyper-relevant in today’s times, with audiences relying on relatable voices of reason across consumption categories. The culmination of the two aspects, layered with the right value proposition can garner stronger intent for purchases and has immense potential for leverage in today’s times.”
Bagai of Sociowash brings out that digital in today’s time has become the go-to solution for almost all queries, whether it’s Google, Facebook, Instagram, Twitter, YouTube, or even Discord.
“In today’s digital age, social commerce has become a popular way for businesses to reach and engage with customers. Social media platforms have a large and active user base, making them an effective way for businesses to reach a wide audience. Many social media platforms also have built-in tools and features like Instagram shop, which makes it easy for businesses to sell products and services directly through their profiles or pages. In addition, social media allows businesses to connect with customers in a more personal, interactive way and even via influencers, which can help to build brand loyalty and trust,” he tells.
“The social commerce canvas has expanded from being mostly dominated by ad formats on social networks that support sales to other aspects such as live commerce, conversational commerce, influencer-driven commerce, and creative storefronts by brands with an active social presence. However, in a broad sense, one could look at social commerce as brand-led, community-led and key opinion leader (KOL) led. 70 per cent of social commerce in India is brand-led, which includes conversational commerce too,” says the spokesperson from Wavemaker.
E-commerce or social commerce – what will be your pick to market a brand?
Kothari of White Rivers Media elucidates that as an agency, its primary objective is to assess individual brand voice and align strategies with subjective requirements. “Minimal steps to complete the purchase journey and a mobile-friendly UX can change the whole shopping experience of a customer and prevent loss of interest and cart abandonments. Ultimately, we analyse what works best for a specific brand and deliver accordingly,” he adds.
Dalal of Henkel thinks that for any brand to gain share and grow, both platforms are equally important. She says, “E-commerce has formed a strong foundation for every brand out there, it has been built over a period of time and is here to stay. On the other hand, social commerce is a rapid trend that has every business custodian’s attention.”
Sethi picks social commerce. She clarifies, “In the coming future, social commerce would be experimental. People are done using e-commerce. We are a country that gets bored and done with things too soon. There was a rage when e-commerce had become a thing when Snapdeal, Amazon, Flipkart and many others existed in the market but look at where we are right now. There is a need for social commerce with us growing every day.”
Bagai suggests that it all depends on the specific goals and target audience of the brand. Both e-commerce and social commerce can be very effective ways to market a brand, and the best approach will depend on the unique needs and characteristics of each brand.
He goes on, “Although, in my opinion, social commerce has a very big advantage over e-commerce as the factor of convenience reduces the target audience’s friction for conversion. Social media platforms also have a plethora of options, making them a great tool for businesses to showcase their products and services most creatively and subtly advertise them. Social commerce also allows companies to foster deeper and more meaningful relationships, hence a great tool for PR.”
“Along with that social media allows for real-time interactions with consumers, which can lead to a more personalised and enjoyable shopping experience. With a diverse set of options available, users can look for all solutions in one place,” Bagai adds.
The spokesperson from Wavemaker describes, “The effort and mechanics of engineering sales through social commerce may be significantly higher and therefore the spends may differ from category to category. Categories such as beauty & personal care, fashion & lifestyle were the early adopters, and they have been scaling steadily. Categories such as food & beverage (F&B) and travel have also started using social commerce in a significant way.”
On the concerns of social commerce such as fraud etc., and the solution to these issues and concerns
“Social commerce is a budding market at present and just like any other sector, has its own limitations that we are aware and mindful of while strategizing for our brands. It requires due time and effort to build the brand with ongoing trends to keep up with the growing market. The potential for organic reach goes a bit down as compared to the optimised websites, and here we make use of intelligent social marketing to keep the traffic flowing. We also consider the need for safety against fraudsters and hackers, which is something that can affect any sector,” Kothari makes clear.
Sethi asks, “Where isn’t a fraud? E-commerce at one point was the biggest fraud. We still hear cases, don’t we? The only thing that will backfire will be acceptance. It takes a lot of time for our country to accept things. It trickles down from tier I, II and the subsequent tiers so there is a long way and a lot of time for us to see how the future unfolds.”
She further elucidates, “I think the solution would be just having trusted sources. We still trust Instagram ads, don’t we? Pay on delivery and other things could be used in the beginning declaring when things are promoted and not just the basic guardrails that could keep the sanctity intact. It’s too soon to comment on any solutions because we still haven’t seen any real problems as of now.”
Bagai expresses that it’s very sad to hear stories about pages scamming innocent and unsuspecting people to lure them and loot the money they have earned through hard work and dedication. Strict measures are required to reduce these cases to a minimum but as we know this isn’t the only issue when it comes to concerns around social media.
“When using social media platforms to sell products and services, businesses are subject to the terms and policies of those platforms. This can make it difficult for businesses to have control over how their products and services are presented and marketed on the platform. Social media can also be a very crowded and competitive space, which can make it difficult for businesses to stand out and attract the attention of potential customers. When businesses use social media platforms to sell products and services, they may not have full ownership or control over the data they collect about their customers. This can make it difficult to effectively use data to improve and grow the business,” he further brings out.
Despite these concerns, social commerce is still a growing and popular way for businesses to reach and engage with customers, and many digital and creative agencies can effectively navigate these challenges and achieve success through social commerce.
Bagai discusses, “With a plethora of challenges comes creative solutions that can be found in the simplest and minute details of all places. Businesses need to be verified on any platform they are using because it helps to ensure that they are legitimate and trustworthy. This can help to protect users from scams or fraudulent activity. It is also important for users to be aware of what they see on the platform and to be cautious of deals they see online. If a deal seems too good to be true, it is likely that it is not true and the user should exercise caution before proceeding. It is always a good idea to do your research and verify the information before making any decisions based on what you see on a platform.”
“For limited data ownership, businesses can make the most of the data they do have by using it to inform their business decisions. This can involve analysing customer data to better understand their needs and preferences and using that information to improve products and services and target marketing efforts. The most important thing to know is – that come what may, your digital and creative agency is filled with experts and creative wizards to make your brand stand out from the competition and make your business boom to the next level,” he concludes.
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