Social commerce set for rapid growth, but authenticity concerns remain: Experts

Social commerce is on brink of expansion, with projections suggesting a tenfold increase by 2030, hitting a market value of $55 billion in India. 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 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 increasing popularity of social commerce among direct-to-consumer (D2C) brands, with significant quarterly spending growth observed over past two financial years.

Divija Bhasin, founder of a mental health organization and a silver-jewelry business, emphasizes scalability and long-term viability of social commerce, citing convenience and entertainment value that social media platforms offer to shoppers.

Charu Khanijau, founder of izya, a D2C ethnic wear brand, shares her firsthand experience, ting 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 aunticity 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.

rise of syntic content generated by AI furr complicates aunticity challenges on social media platforms, prompting platforms like YouTube to implement labelling requirements for such content.

In India, regulatory bodies like Central Consumer Protection Authority (CCPA) and vertising Standards Council of India (ASCI) oversee matters related to unfair tre practices and false vertisements, 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 evolving landscape of online commerce effectively.

(With PTI inputs)