Government Initiatives to promote Internet: Government of India has launched initiatives to promote the access of smartphones and internet users in India. A huge amount of funding has been made in the Union Budget over the years to promote the Digital India mission of the country. Moreover, Projects such as Internet Saathi were introduced to improve internet penetration among rural women in India.
Promoting Unemployed Women: Reselling behavior is more prominent among the housewives as a source of income. More than 50% of the women resellers at social commerce platforms live outside the metros (Tier II and Tier III), with very few job opportunities. The platform of reselling allowed them to work from home at a time of their convenience and has turned them into owners of small businesses. However, 5.4 Mn women are still unemployed and can be captured to increase the reseller base.
Challenges: There are many challenges that are faced by social e-commerce players in India largely due to the target audience it caters to. Maintaining a curated list of suppliers and ensuring reseller and customer retention is a major challenge. Companies also have to ensure regular inspections on real-time inventory and quality checks in order to make every pin code in India serviceable.
Impact of COVID-19 on Social Commerce Industry: COVID-19 situation has created a strong negative impact on the Social Commerce Industry. Many companies in the industry are startups and hence faced a shortage of funds due to which the layoffs in terms of employees have been made by them for sustaining their presence in the industry. More than 50% o the employees have been forced to leave the companies. Consequently, companies added food and grocery segment in their product categories so as to ensure orders and hence recovering some of the losses faced due to this situation. However, companies in terms of logistics and deliveries faced a real challenge. With thousands of vehicles stranded & drivers not expected to resume work until the lockdown situation improves, the logistics sector is undergoing a paralysis. Some of the startups on the other hand still managed the deliveries through their regional partners.
Opportunity: Lockdown to some companies was perceived as an opportunity wherein the players focused on strategizing the ways to retain and engage customers in their free time. The number of individuals with the presence on social media has taken a surge in terms of number of accounts they have on social media like TikTok and Instagram majorly. Hence, promotion and growth strategies in terms of games & groups were introduced to deal with the situation and make the most of it.
The report titled “India Social E-Commerce Market Outlook to 2025- Driven by Growing Government Initiatives to promote Internet & Smartphone users coupled with the rising preference of Online Shopping in Tier II & III Cities” by Ken Research suggested that major focus areas for new social commerce players in India include adding more number of resellers, providing good value a proposition, maximizing earning, product assortment, commissions & margins are good and robust backend supply.
Key Segments Covered: –
Market Size
By GMV
By Product Category
Fashion & Apparel
Home & Kitchen
Beauty Products
Electronics
Others
By Region
Tier I
Tier II
TierIII
By Number of Orders
By Gender
Female
Male
By Mode of Payment
Cash on Delivery
Net Banking, Wallets & UPIs
Debit & Credit Cards
By Device Type
Mobile
Desktops/Laptops/Tablets
Companies Covered
Meesho
Shop101
GlowRoad
Dealshare
BulBul.tv
Mall91
Simsim
Wmall
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: –
India Social E-Commerce Industry Growth
Related Reports by Ken Research: –
Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249