In today’s world, social media has emerged beyond just a networking platforms but it has also become a channel for the Direct to Consumer (D2C) segment and the key drivers enabling Social Commerce in India.
Content commerce has been one the most promising and emerging business models that has seen a mass acceptance. Though it was gaining traction even before the pandemic, but now it has become an important part of mainstream commerce. Testimony to this is the report titled, ‘The Future of Commerce in India – the rise of social commerce’, released by Bain & Company in partnership with Sequoia India, that says India’s social commerce sector will be two times the size of the current e-commerce market within ten years. This exponential growth will be driven by various factors ranging from conversational commerce on chat platforms to short video-led commerce.
With live commerce companies like Meesho, Bulbul, SimSim already building unique social commerce capabilities in India to drive the growth of the social commerce market in India, new players like Bolo Indya, Trell are betting on content-based social commerce capability.
A recent survey by PayPal revealed that India is already the leading Asian market for social commerce and is projected to become a $100 billion vertical of e-commerce by 2025. Social commerce entails an amalgamation of the use of social media and e-commerce and its growth can be estimated with India’s vast social media user base and our growing appetite for e-commerce.
While many are in early stages of online content commerce, Bolo Indya has already taken the lead to drive a purpose led engagement model to financially empower creators in India by monetizing their content.
Bolo Indya has recently launched Bolo Meets – Industry’s first engagement led Peer2Peer platform Commerce service capability on its platform, which reflects the depth and strength of a content creator and a follower relationship with more than 90000 transactions already for just over 7500 content creators, contributing close to 30% of the net revenue already.
The regional connect poised by language-first content platforms is one of the critical reasons for this massive success of social commerce in India.
In the past few months, India has witnessed the birth of a lot of homegrown social commerce startups. Even the big e-commerce players are entering the social commerce space to target consumer Tier II and Tier III regions of India.
There is certainly a belief today with clearly supporting indicators that the next biggest driver for India will be social commerce, i.e. platforms enabling video interactions for shoppers with popular social media influencers, reseller platforms, chat-led commerce, and group buying, which is cheaper. What amplifies this is that the usage of social and video platforms for purposes such as gaming, music and video streaming and networking is more universal, with even non-transactors of e-commerce spending more than two hours every day online. This highlights the inherent potential in merging social media with e-commerce. It would help address the concerns of those who’ve never transacted online. This is elaborated in the Future of Commerce in India report released by Sequoia India and Bain & Company.
Post Tiktok ban, while the Indian players are running after large expensive user acquisitions, bigger download numbers game; driven from their investors’ deep pockets and cash-rich parents companies, these large users numbers are no more cheering the investors as the investors are now looking at the differentiated capabilities, exciting new monetization models and exponential value that can be created in middle to long term to create a large scale impact driven large consumer internet business.
By- Varun Saxena, Founder and CEO, Bolo Indya