Video Commerce in India – The Next Leap in eCommerce
A couple of years ago in 2019 when Flipkart started off with integrating videos on their platform many thought of it as a ‘me too’ effort. Especially when Amazon already had Prime Video offering for their Prime customers. Two years down the line, it seems like Flipkart Video has been serving a different purpose altogether. In-app video streaming with influencer-led snackable content coupled with e-commerce looks like a trend. A trend which is catching up across all the players leading to the rise of Video Commerce in India.
According to an EY report, India’s e-commerce industry is expected to reach $99 billion by 2024, growing at a CAGR of 27% during 2019-24. Further, the FICCI-EY Media and Entertainment Report 2021 indicates that the number of video viewers increased by 15% in 2020 to reach 468 million. This number is expected to grow to 650 million by 2023.
Pay For Video OR Pay For Products?
Looking at the numbers if the country has 650 mn people consuming video content by 2023 and only 99 mn people shopping online by 2024, the gap is huge. It would be interesting to learn how many of these video watchers are or rather, in the future, would pay for watching video content. That will be a closer correlation as they may be the ones who would be transacting online on eCommerce portals as well. As media companies gradually aim to make people pay with their Premium offerings, it is feasible that a rise on that front may lead to a rise in online shoppers. So basically the expectation could be millions of video watchers may end up buying content first i.e. paying for a premium subscription, followed by buying products from a related eCommerce.
However, this is larger and probably a slightly more stretched picture. In reality, it is the other way around. The expected user flow is from free content to online commerce and there comes the rise of Video Commerce in India.
From Flipkart to Amazon Mini TV and everyone in between
The amalgamation of video streaming and e-commerce can get more users to shop online. The latest entrant in the space is Amazon with their Mini TV offering. Unlike Prime Video, the Mini TV offering is free. Mini TV features product reviews and recommendations posted by leading influencers and associations with various experts. It also lets some of its Prime Video content be watched for free on the platform. The trend picked in 2019 by Flipkart has had many takers – HYPD backed by ScoopWhoop, Myntra, Roposo, Chingaari, and many more.
If all of this falls as per plan, it will be like, Amazon’s acquisition of MGM Studios may lead to more apparel sales on the platform. Sounds outrageous but very much possible especially in an era where COVID has left limited room for in-store product experiences.
