From FY 20-25, social commerce expected to grow at 55-60% CAGR in India: Report | The Financial Express

From FY 20-25, social commerce expected to grow at 55-60% CAGR in India: Report

The data collected comes from the social media trends 2023 report released by Talkwalker and Khoros

From FY 20-25, social commerce expected to grow at 55-60% CAGR in India: Report
Influencers, employee advocates, and consumers will be engaged within brand communities to generate authentic connections and consumer-led content

In 2023, brands are likely to leverage social media as dedicated support channels, as 75% of consumers have reported that the pandemic has driven long-term changes in their behaviors and preferences to include a bigger focus on urgency, as per the social media trends 2023 report released by Talkwalker and Khoros. The report claims to feature contributions from Smita Murarka, chief marketing officer (CMO), Duroflex; Samit Malkani, group marketing creative manager, brand, India and southeast Asia, Google; and Aurnob Godinho, deputy general manager, Bombay Shaving Company.

In this new environment, marketers must focus on forging symbiotic relationships through a better understanding of online conversations and taking quicker action, David Low, CMO, Talkwalker said. “It’s this new understanding that will help brands create meaningful experiences and become closer to their consumers,” he added. 

According to the report, from FY 2020 to FY 2025, social commerce is expected to grow compound annual growth rate (CAGR) at 55-60%, which will take the current market size from $1.5-2 billion to $16-20 billion. The report observes that there is an increased demand for affordability owing the post-pandemic digital growth and the hike in cost of living for people. Therefore, consumers are likely to explore social commerce as a new shopping channel, the report claimed. 

As per the report, brands are likely to place emphasis on communities over personas, as 66% of branded communities have said that their community has led to increase in loyalty. Influencers, employee advocates, and consumers will be engaged within brand communities to generate authentic connections and consumer-led content, the report concluded. 

Consumers care more about their communities, global, local, in real life (IRL), and online, Dillon Nugent, CMO, Khoros, stated. “Marketers need to tap into these trends and behaviors more deeply to personalise customers’ experiences and create more impactful strategies that empower your brand to stay connected to customers and grow your presence in the market,” he highlighted. 

Also Read: Work That Speaks | Ad Reviews | 19 to 25 Oct 2022

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First published on: 27-10-2022 at 12:37 IST