Social Commerce's Global Rise Meets India's Reality Check
For years, Indian business leaders have eyed social commerce as the next massive opportunity, often comparing it to China's explosive growth. Yet, the reality tells a different story. India remains largely on the sidelines, watching as other nations capitalize on this trend. The burning question now is whether India can catch up in the coming years.
What Exactly is Social Commerce?
Social commerce transforms how people shop online by blending social media with e-commerce. It typically comes in three main forms:
- Livestream selling: Influencers broadcast live videos where viewers can watch, interact, and purchase products in real-time.
- Influencer-led discovery: Popular social media personalities recommend products to their followers on platforms like Instagram and YouTube.
- Group buying: Consumers band together to make purchases, securing better deals through collective bargaining power.
China demonstrates the staggering potential of this model. Nearly half of all internet users there watch livestreams, totaling over 500 million people. Platforms like Douyin (TikTok's Chinese counterpart) have turned social selling into a cultural phenomenon.
The Global Picture and China's Dominance
Global research paints an impressive picture of social commerce's growth. The market reached over $1.6 trillion in 2025 and continues expanding at more than 30% annually. China leads this charge, generating nearly $900 billion in social commerce revenue alone. This represents about 30% of all e-commerce activity in the country.
Several factors drive China's success. Widespread smartphone adoption, cohesive social structures, and high population density create ideal conditions. The super-app WeChat plays a crucial role too, with its 1.3 billion monthly users providing a frictionless platform for social transactions.
India's Social Commerce Struggle
Despite the global boom, India's social commerce journey has been disappointing. Current estimates show it contributes just 1-2% of total e-commerce revenue. This pales in comparison to Indonesia's 20-25% and China's 30-40%.
Some Indian companies have found limited success. Myntra reports generating 10% of its revenue through social commerce channels involving 3.5 million creators. Hindustan Unilever now collaborates with 12,000 influencers, up dramatically from just 700 last year. Startups like Simsim, Bulbul, and GlowRoad continue experimenting in this space.
Yet livestreaming, a cornerstone of China's success, hasn't gained similar traction in India. Multiple challenges explain this gap.
Key Challenges Holding India Back
Trust Deficit: China operates as a high-trust society where about 65% of people believe others can be trusted. In India, that figure drops to just 20%. This fundamental difference affects how consumers approach new shopping models. Chinese buyers readily pay in advance using digital wallets, while Indian shoppers often prefer cash-on-delivery after inspecting products.
Infrastructure Hurdles: India's internet quality ranks 131st globally, with high data costs particularly affecting Tier 2 cities. Logistics present another major obstacle. Parcel density in China averages eight times higher than in India, making delivery systems more economically viable there.
Payment Preferences: About 65% of e-commerce purchases in India still involve cash payments, especially outside major cities. This preference creates friction for social commerce platforms that thrive on seamless digital transactions.
Market Fragmentation: India's retail landscape remains highly fragmented, with regional brands and unbranded products accounting for over 70% of retail spending. This diversity requires customization across languages and cultures that social commerce models struggle to accommodate efficiently.
Regulatory Differences: China enforces strict verification for influencers, requiring proof of qualifications for certain topics. India maintains looser regulations, focusing disclosure requirements only on technical advice rather than general content. This approach sometimes leads to misinformation concerns that undermine consumer trust.
Case Studies: Meesho vs Pinduoduo
The contrasting paths of Meesho and Pinduoduo highlight India's challenges. Both companies launched in 2015, but their trajectories diverged significantly.
Pinduoduo, China's group-buying giant, achieved profitability within seven years and now reports multibillion-dollar net income. The company maintains a market capitalization exceeding $170 billion.
Meesho, often cited as India's social commerce success story, serves over 50 million monthly users and generates $6 billion in gross merchandise value. Yet it reported a substantial loss of ₹3,942 crore in FY25. More tellingly, Meesho has gradually shifted from pure social commerce toward a traditional marketplace model, suggesting the original approach proved difficult to sustain in India's market conditions.
The Road Ahead for India
Social commerce will likely grow faster than general e-commerce in India, but from a very small base. Reaching China's level of maturity appears unlikely in the near term. The model requires fundamental improvements across multiple areas:
- Building higher trust in digital platforms and transactions
- Developing frictionless payment systems that accommodate Indian preferences
- Creating formats that respect India's linguistic and cultural diversity
- Improving infrastructure connectivity and logistics efficiency
Industry experts estimate these changes could take at least a decade to materialize fully. Until then, social commerce in India will continue evolving gradually rather than exploding like it did in China. The opportunity remains real, but the timeline for realization stretches far longer than many initially anticipated.
