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Growing Number of MSMEs and Rising Online Penetration of Retail has Led to Emergence of Social E-Commerce Market in India: Ken Research

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 Product Category

Fashion & Apparel

Home & Kitchen

Beauty Products



By Region

Tier I

Tier II

By Number of Orders

By Gender



By Mode of Payment

Cash on Delivery

Net Banking, Wallets & UPIs

Debit & Credit Cards

By Device Type



Companies Covered








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: –

Taiwan E-Commerce Market Outlook to 2023 – Online Retail (By Product Categories, By Desktop and Mobile, By Gender); Online Travel (By Intermediary and Direct Online Sale and By Desktop and Mobile); Online Payment Gateway Market

UK E-Commerce Market Outlook to 2025 – Online Retail (By Product Categories, By Desktop and Mobile Transaction Type, By Gender and By Mode of Payment); Online Travel (By Intermediary and Direct Online Sale and By Desktop and Mobile Booking Type); Online Advertising (By Desktop and Mobile Ad Spend, By Type of Advertising, By Type of Display Advertising, By Sectors and By Advertising Model); Online Movie Ticket Booking; Video Streaming; Music Streaming and Online Gambling

India Logistics Market Outlook to FY24–Driven by Government Infrastructure Push, New Age Logistics Startups, and Technology Innovation

Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications


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