India Social E-Commerce Market Outlook to 2025: Ken Research
The report titled “India Social E-Commerce Market Outlook to FY’2025-Growing Number of Online Shoppers in Tier 2 and Tier 3 Cities and Rising Number of SMEs to Drive Growth” provides a comprehensive analysis on the growth driving parameters, trends and positioning and of the Social e-commerce Industry and Companies in India. The report covers various aspects including the Social E-Commerce Scenario in South East Asia, Current and Future Scenario of Social E-Commerce Market in India, its segmentation i.e. By Product Category, Gender, Region, Payment Methods and device Type, Social Media Snapshot, Trends, Challenges, Success & Failure case studies and Competition Benchmarking. The report concludes with market projections for the future of the industry including forecasted industry size by GMV and Number of Orders.
India Social E-Commerce Market Overview and Size:
Social E-Commerce Market in India is still growing as the industry emerged in late 2015, when Meesho started with its operations. India Social E-Commerce Market in terms of Number of Orders has witnessed a CAGR of 38.6% during FY’17-FY’20 due to the growing number of startups in the industry, increasing smartphone penetration, declining mobile internet costs and larger social media usage with the rise of short-form video platforms such as TikTok and Instagram. Internet penetration being a major growth driver in India grew from a mere 4% in 2007 to 34.42% in 2017, registering a CAGR of 24% during the period 2007-2017.
India Social E-Commerce Market Segmentation
By Product Category
Fashion and Apparels in Social E-Commerce Industry accounted for the highest percentage share wherein product categories such as Ethnic wear and dress material dominated more than 60% of the fashion category in terms of GMV due to the trust and feasibility factor associated with the products. Other segments in the Product category include Home Décor, Beauty Products, Electronics, and Others. These segments contribute a relatively lower proportion in terms of GMV in India.
Mobile dominated the market share with more than 80% share in terms of number of orders as many social e-commerce platforms take orders only via mobile apps and have shut their websites.
The majority of the Number of Orders are placed by the female segment in the country. The larger market share was largely due to the number of product categories and options in fashion, home décor, and beauty products that are available and are largely being bought by female buyers. Moreover, more than 70% of the resellers are female.
Tier 1 region in India accounts for the highest market share in terms of GMV in India due to the awareness about such platforms and delivery services which are highly feasible in such areas. Tier 1 region is followed by Tier-II cities which are anticipated to dominate the market in terms of GMV in the future.
By Methods of Payment
More than 60% of the orders in the Social E-Commerce Industry in India are placed via Cash on Delivery payment method. Lack of confidence in Tier II and Tier III cities population on the reseller and the product quality makes them choose COD over other payment methods. Net banking, wallets & UPIs contribute the second-largest share as people are still developing trust over such medium. Number of Credit and Debit card users in Tier II & III are very not as much. Hence, Debit/Credit accounted for the lowest percentage share.
Competitive Landscape of Major Start-Ups Operating in the India Social E-Commerce Market
India Social Commerce Industry is a highly concentrated market with 6 major startups operating in the Industry catering to different regions in India. Players in the market compete on various parameters including Business Models, Product Categories, Geographical locations, Number of Suppliers and Resellers, business model, Commissions, Average Order Size, Average Number of Orders, Active Customer Base, Payment Methods, Unique Page Views, Cancellation Rate, and Refund Rate. Major companies include Meesho, GlowRoad, Dealshare, Shop101, Mall91, Bulbul.tv, SimSim others that include Wmall, Citymall, and others
India Social E-Commerce Market Future Outlook & Projections
The Social E-Commerce market in India is expected to experience double-digit growth owing to multiple factors that include rising advancements in payment gateways and e-wallets led by UPI and government initiatives to increase the number of internets and smartphone users. The report also highlights upon the Target Addressable Market and prospective growth areas for new and existing social e-commerce startups. The report concludes with highlighted opportunities and cautions for new and existing startups in the industry with success and failure case studies.