Social Commerce as the name suggests is the ability to transact-buy and sell over social media platforms, and leverage their reach combined with users own circle of influence to curate, promote and sell products or services to consumers.
A recent PayPal survey revealed that India is already the leading Asian market for social commerce. It is estimated to become a $100 billion industry by 2025. Women are leading the charge by being dominant sellers and buyers on this medium.
Some of the key factors for its growth as per the report are as under:
- Increasing smartphone penetration and declining mobile internet costs have opened up a market of 400 million users in India’s Tier II and III towns and beyond.
- Proliferation and advancement in payment gateways and e-wallets led by UPI
- Unhindered growth in social media usage and the rise of short-form video platforms such as TikTok, Instagram, and Snapchat.
- Availability of vernacular networks like ShareChat, Roposo, and others
Success factors depend upon the following factors:
- Ability to build trusts within your community
- Use of local language in promotion of the product
- An ever-expanding network of people
- Value for money products
- Increasing aspiration in Tier II and Tier III town.