PremiumBANGALORE: Live commerce in India is beginning to set foot, as the industry is expected to drive gross merchandise value (GMV) of $4-5 billion by 2025, management consultancy Redseer said on Monday.
Of all the categories, beauty and personal care (BPC) is expected to grow the most, likely clocking more than $1 billion in GMV, with live commerce. Fashion is expected to contribute 60-70% of GMV while BPC will contribute the rest, showed Redseer findings.
Indian short-form content is expected to majorly drive live commerce up to $2.5-3 billion by 2025.
At present, there are two key channels that are expected to offer live commerce on their platform. First are pure-play short-form video apps including Chingari, and Roposo which are looking to foray into the live commerce category. Then there are social commerce players including BulBul and Meesho which started live commerce at a low scale, said Redseer.
“The separate segments have different pros and cons. The pure-play video is entirely dedicated for live commerce, but these platforms still have a small scale, and it may become challenging if these platforms do not increase their daily active users (DAUs). Specialised platforms have more than 100 million DAUs which means it can scale faster and China’s learnings show that short-form (video) can largely drive live commerce," added Redseer.
At present, short-form content is consumed by 215 million users monthly, comprising 36% of India’s smartphone market. This is expected to rise to 600 million users over the next 4-5 years.
“China has shown multiple tipping points in short form evolution starting from the content creation, consumption and maturing live commerce, it has come a long way. While India has largely followed the same journey as China, it is now at the juncture wherein creators are making millions through content creation, endorsements but are yet to start with live commerce content. This is expected to be the next big move in the ecosystem, which will inevitably strengthen the live commerce segment," said Redseer.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!