Mumbai: The e-commerce market in India has been witnessing an evolution in recent years with the emergence of newer formats like video and social commerce. The video commerce segment is already on its way to being the next big thing in digital commerce with video content consumption gaining traction on social media platforms. According to the latest report released by WATInsights in its digital commerce series, the number of video commerce users is expected to touch 216 million by the end of 2022 from 146 million users in 2020, indicating an exponential growth of 47 per cent.
WATConsult, the Isobar India group digital agency from dentsu India has unveiled its third report of WATInsights ‘Digital Commerce in India - Video Commerce.’ The report by Recogn, the agency’s research division, shares insights on the scope of the futuristic channel of advertising and captures consumer sentiments towards using this platform for shopping.
According to the report, currently, there are around 146 million video commerce shoppers in India who have purchased and transacted on video commerce platforms. Today, the total is nearly 49 per cent of all e-commerce users in India. With the number of video commerce shoppers expected to reach 216 million this year, the format promises the immense potential for brands to connect directly with their consumers.
As per the report, when it comes to the video content format, most customers prefer explainer content videos followed by customer testimonials and product demonstrations. While product videos add a different dimension to the online shopping experience, video content with a duration of 15 seconds to a minute can make users stay longer on the platform. Also, if they like the videos, they share them with their circle of friends and family, further increasing the reach of the content.
Live streaming commerce in India is gaining traction and it can help brands, retailers, and marketplaces to accelerate conversion, improve the brand appeal and create differentiation, says the report. More than half of the customers state their affinity towards shopping online during live streaming on social media and shopping apps. Amongst the platforms used for video commerce, YouTube led the pack with 53 per cent of users, followed by Instagram and Facebook at 39 per cent and 38 per cent respectively.
“Video commerce has become popular with more Indians moving online and discovering new ways of shopping through video platforms," remarked Isobar India group CEO Heeru Dingra. "When it comes to buying products, customers are interested and want to see what they are getting. It offers businesses and marketers a higher rate of conversion and is the most powerful instrument in today’s age.
"There is a huge opportunity to capture the video-based social commerce market, especially live-stream-based e-commerce while the market matures. Consumers today are frequently looking out to streamline and enhance their experience, they prefer instantaneous results. Brands can use this format to streamline their sales. I believe this latest issue of WATInsights will be an invaluable resource for anyone who intends to demystify video commerce in India,” Dingra further said.
“The world has moved towards dynamic content and is driving commerce through video," stated WATConsult managing partner Sahil Shah. "The true power of video-led marketing on digital will come into play when it can have a direct impact on the bottom-funnel metrics as well. On top of that, if one can get creative with the many formats available then it is the ultimate icing on the cake."
