E-commerce in India is now ubiquitous. Established pre-pandemic and exaggerated post-it, e-commerce has been a true disruptor to how people shop in India today. But from all that is visible, the current e-commerce situation in India is but the tip of the behemoth iceberg still under the surface.

The Potential of E-Commerce

The surface line, in this case, a simple line between urban, technologically adept, and increasingly worldly populations and those who are now beginning to enjoy the benefits of technology and the internet dwelling in semi-urban, even rural areas, is blurring quicker than once thought possible. The introduction of smartphones and tablets, data at a fraction of its original cost, and national connectivity is propelling a larger section of society that previously would have shunned the ways of the city folk for what was traditionally the norm, towards being part of the connected digital tomorrow.

And while these leaps for technology as the great equalizer are positive signals of where the country is eventually heading, the Bharat that is coming up is still resilient in protecting some of its own ways and norms even in this sweeping digital revolution. As per a report by the Boston Consulting Group, the e-retail and e-commerce has the potential worth anywhere from $800 bn to $1000 bn. Today, organized retail has perhaps less than 10% of that market and for companies playing purely in the online space, that percentage decreases to less than 1%. So this untapped market, which is strong enough to make or break even the biggest global e-commerce companies in their steadfastness to traditional shopping, is what social commerce was exactly designed for.

As of 2022, India boasts 692 million internet users and 600 million smartphone users. The interaction of digital and commerce is bound to grow. For example, if the BCG group estimate is to be taken as a standard that means more than 500 million people are yet to partake in the market. Understanding the ‘rest of’ market is what will be key to realizing e-commerce potential in India.

Dynamic Consumers

As a Forbes article once stated, one needs to be conscious that this is a very unique consumer. Not as technologically savvy or as comfortable relying on digital means of transactions, this consumer group is unabashedly not worried about the latest brands or trends, nor in 10-minute delivery times, but in low cost, high-quality products that are delivered in good condition and can satisfy their short-term and medium-term demand. This is a consumer group that is exploring what the digital world has to offer and can quickly reject those that do not understand its core values and methods in which shopping and buying are usually conducted.

The more unique aspect of this genre of consumers is what pushes them to buy, whether online or offline. Marketing, in its more traditional sense, is lost on them. As stated above, they care little for national and global brands, as long as they can get a good deal on high-quality products. Word of mouth, seeing others in the community or in the locality using certain products, and relying on known entities with whom they have built years of trust are what drive these consumers. Integrating and incorporating this into the business model becomes key in sustaining their interest and retaining their demand. Technology that can help expand the reach of these principles, platforms like WhatsApp and YouTube, can transform how business is conducted. Social commerce relies on these principles and is what will eventually drive the next generation of market share.

Scope of Social Commerce

Technology has to keep in mind the next user. If it were to be siloed in only improving the lives of those who are familiar with it, the potential of technology and that of the market would be relatively stunted. Platforms that can help populations in their upward mobility and in doing so bridge the gap between the haves and have-nots are what truly change the world but more importantly, are those who find successes in areas once thought lost or unattainable. As technology develops in India, keeping an eye on how it can uplift and ease the lives of the rest of India, not just the urban middle and upper class, but also the fast-rising rural and economically weaker classes, is going to be key to all digital services and commerce in the future. Without technology advancing towards this goal, concepts like social commerce have very little scope in front of them.

The good part though, from all that is discernible, technology is moving in the right direction, and social e-commerce not only is here but has the potential to transform the mass market. India has realized, and it's never too late for it, that to grow in the global economic ladder, every rung of its society needs to be moving forward. Social commerce enforces and encourages exactly that and if it can be harnessed to its true potential, India’s economic growth story can disrupt the world.

About the Author

Sourjyendu Medda, Founder and Co-CEO, DealShare

Sourjyendu Medda is a seasoned business professional with over two decades of experience in building consumer brands. He has a proven track record in all aspects of business management including Marketing, CRM, Pricing and Operations. As one of the founding members of DealShare, a social e-commerce start-up, he has played a pivotal role in bringing alive the incredibly disruptive e-commerce opportunity to the heartland of India aimed at the mass market by leveraging the WhatsApp-first social virality concept.