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The Dark Horses of the Start-up Era (A Series): 1 - Social Commerce
The Dark Horses of the Start-up Era (A Series): 1 - Social Commerce

May 12, 2021

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Social Commerce: A Giant Sector in the Making

Innovation is more powerful than a business model and time has proved it again and again. Earlier we used to look for innovative solutions under a particular business vertical but now innovation is able to create a new vertical by itself. Let’s simplify it, have you ever thought that anything can be bigger than e-commerce? Because an e-commerce website is complete enough for shopping. It has a dedicated website, different types of filters, etc. But that’s not enough because you cannot sell to every customer who is online but you can anytime go to the platform where the person is online.

Exactly, that is what “Social Commerce” is all about. People spend hours of their time every day on social media and to make the best use of this various start-up have entered your social media platforms to sell stuff which is of your interest. Basically, social commerce allows the customer to make their purchase within their social media experience. Sound interesting? Just to give you an example you might see a sweet printed shirt on your Instagram feed or a decently priced cap on Facebook with a click button “buy”. Social commerce has evolved over time and we see new kinds of start-ups in this which also offer features like reselling etc.

Pandemic has pushed millions of people towards social media, spending extra time on these platforms making “social commerce” a more attractive option.

But why “Social Commerce”?

  • Make shopping experience more interactive
  • Allow consultation with friend and family before a purchase
  • Make purchase easy and frictionless
  • More than 80% of shopper research their product on Instagram and Facebook
  • Instant feedback about the product
  • Target advertisement
  • Global Market Size:  Expected to reach $604.5 billion by 2027

Social Commerce

Can we say that “social commerce” is a new smarter way to reach the target audience? Well, that's right and this is what the statistics also say. The soaring valuation of social commerce start-ups in India confirms the same and that too in a short span of time.

Meesho: Backed by Facebook, Meesho recently turned unicorn after raising $300 mn in a funding round led by Japanese conglomerate SoftBank.

DealShare: DealShare sources products of daily use directly from local manufacturers and suppliers. The company is likely to be valued at around $400 million after the completion of the round.

Many more such start-ups are coming up and we can expect a whole new ecosystem of social commerce in the near future. As per a recent research report, social commerce in India could touch $16-20 billion in gross merchandise value over the next 5 years. Pandemic is leading fueling this growth and we see high growth in this sector. A powerful and giant sector in the making.

 

Source: Mint, Inc42, Indian Retailer, Company Websites

 

  


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