Why social commerce thrives in China but struggles to scale in India

Subscribe to enjoy similar stories. For the past few years, social commerce has been pitched in Indian boardrooms as the next China-sized gold rush. Yet, despite the hype, India remains more a spectator than a participant, and social commerce has yet to realise its full potential in the country.

The big question is: will it deliver over the next few years? Social commerce broadly takes three forms: livestream selling, influencer-led discovery and group buying. Livestreaming implies an influencer broadcasting a live video with their followers, allowing viewers to watch, interact and shop while the stream is happening. According to the Economist, nearly half of the internet users in China watch livestreaming, amounting to over 500 million people.

Selling via influencers on social media (e.g., Douyin, TikTok’s sister app in China) is quite popular these days, especially on platforms like Instagram and YouTube. Group buying implies consumers making a purchase as a group, getting better deals in the bargain. For instance, Pinduoduo, a group buying-oriented social commerce firm from China, has a market capitalization in excess of $170 billion.

Globally, the social commerce market size was estimated to be over $1.6 trillion in 2025, and is projected to grow at over 30% CAGR every year till 2030, according to a report by Grand View Research. One of the biggest markets globally is China, and according to the Economist, China accounts for nearly $900 billion of social commerce revenue representing 30% of all e-commerce revenue in China. For the past few years, social commerce has been pitched in Indian boardrooms as the next China-sized gold rush.