The rise of synthetic content generated by AI further complicates authenticity challenges on social media platforms | Image:Pixabay
Social commerce is on the brink of expansion, with projections suggesting a tenfold increase by 2030, hitting a market value of $55 billion in India. The emerging trend, which combines e-commerce with social media platforms like Facebook, Instagram, and YouTube, is gaining momentum in retail.
Anand Ramanathan, Partner at Deloitte India, highlights the robust growth of social commerce, particularly in Tier 2 and Tier 3 cities, driven by a focus on affordable products, especially in fashion and home improvement sectors.
Sonia Sarashetti, Director of Influencer Content at BarCode, underscores the increasing popularity of social commerce among direct-to-consumer (D2C) brands, with significant quarterly spending growth observed over the past two financial years.
Divija Bhasin, founder of a mental health organization and a silver-jewelry business, emphasizes the scalability and long-term viability of social commerce, citing the convenience and entertainment value that social media platforms offer to shoppers.
Charu Khanijau, founder of Adizya, a D2C ethnic wear brand, shares her firsthand experience, noting that social commerce significantly contributes to her business, with a substantial portion of revenues generated from Instagram.
While social commerce presents lucrative opportunities, concerns regarding authenticity and trust remain paramount. Consumers are increasingly discerning about truthful marketing and influencer credibility on social media platforms.
Sarashetti raises concerns about influencers prioritizing popularity over conveying accurate information, which can undermine consumer trust and harm brand reputation.
The rise of synthetic content generated by AI further complicates authenticity challenges on social media platforms, prompting platforms like YouTube to implement labelling requirements for such content.
In India, regulatory bodies like the Central Consumer Protection Authority (CCPA) and the Advertising Standards Council of India (ASCI) oversee matters related to unfair trade practices and false advertisements, imposing penalties for violations.
To ensure sustainable growth, businesses in social commerce must prioritize product quality certification and credible reviews to build consumer trust and navigate the evolving landscape of online commerce effectively.
(With PTI inputs)
