Why Video Commerce is the Next Big Thing in India?

With a young, tech-savvy population, high mobile usage, and a growing appetite for digital experiences, India is uniquely positioned for video commerce to thrive. Read more about this below!

Gone are the days of staring at static product images and reading long descriptions. Today, shopping is about seeing a product in action, connecting with the story behind it, and feeling confident enough to hit "buy now."

This is video commerce. It’s no surprise that video is taking over—93% of marketers already see it as an essential part of their strategy (State of Video 2024 Report by Wistia). And with new technologies making it easier to add video commerce to eCommerce sites, it’s quickly becoming a go-to tool for driving online sales and connecting with shoppers in a more engaging way.

In today’s article, we’ll look at how video commerce is transforming online shopping and why it’s becoming so popular in India. This article is inspired by a knowledge session with Neha Agrahari, who brings over 15 years of experience and is currently a Senior Director of video commerce at Flipkart.

Flipkart shared that a single Live Commerce video on its platform managed to garner an impressive 1.4 million views. Clearly, video commerce is creating waves in the eCommerce space. So, what’s fueling this buzz? Let’s explore below.

What Exactly is Video Commerce?

Before we chime in the definition of video commerce, let’s look at an example from a customer’s pov-

You’re scrolling through Instagram, mindlessly tapping through stories, when suddenly, something catches your eye. It’s a live video from your favourite skincare brand. You tap it, curious.

On-screen, a beauty expert is talking about a brand-new serum that’s been getting rave reviews. She’s demonstrating how to apply it, explaining the benefits, and even answering real-time questions from viewers. There’s a live Q&A happening, and someone asks if the product works for oily skin—instantly, the expert responds with a detailed explanation. And just as you’re getting hooked, they offer an exclusive promo code for viewers who shop during the stream.

Before you even realise it, you’re adding that serum to your cart. Why? Because you’ve seen it work, heard it from someone you trust, and got a special deal you can’t pass up.

So, video commerce is the use of video content—live or pre-recorded—to showcase, demonstrate, or sell products and services online. It builds on the principle of engaging storytelling, leveraging visual appeal to replicate the in-store shopping experience digitally.

Why Video Commerce Is Booming?

Livestream shopping, a format of video commerce, first emerged in China around 2016, but it wasn’t until 2020—when the pandemic kept consumers at home confined—that the format truly gained momentum.

These shopping events are typically led by influencers or key opinion leaders (KOLs) and are known for their fast-paced, interactive nature. They often include time-sensitive special offers, giveaways, prizes, and polls to boost engagement.

Fast forward to 2023, live commerce has grown into a powerhouse, accounting for an impressive 19.2% of all eCommerce sales in China, with nearly 43% of shoppers actively participating in this format.

This widespread adoption is driven by the involvement of major platforms like Alibaba’s Tmall and Taobao, JD.com, Pinduoduo, WeChat, Douyin (China’s version of TikTok), and Kuaishou.

But it’s not just China anymore—this trend is rapidly gaining momentum in India as well. With the rise of platforms like Instagram, Flipkart Live, and YouTube, Indian consumers are embracing the interactive, real-time shopping experience that video commerce offers.

Flipkart revealed that over 75 million users engaged with video content while shopping on its app between January and June 2024 in India, exploring curated sections like ‘Liveshop+’ and ‘Vibes.’

Let’s face it: shopping has always been visual. But with video commerce, it’s also about feeling. Here’s why this trend is taking off:

1. Changing Consumer Behavior

With social media dominating screen time, consumers increasingly prefer visual and interactive content over static text or images. Platforms like TikTok, Instagram Reels, and YouTube have created an appetite for snackable, engaging video content. Video commerce bridges this entertainment with shopping, making it seamless for users to discover and buy products.

As per Flipkart, video content is rapidly growing in popularity across India, especially among millennials, Gen Z, and women from Tier-II and Tier-III cities.

2. Trust Through Authenticity

Videos, especially live ones, provide a sense of authenticity. Watching a real-time product demo, hearing customer reviews, or engaging with a brand representative builds trust.

See it. Love it. Buy it. In one click. Video commerce eliminates the hesitation by answering your questions in real-time or showing you exactly how a product looks, feels, or works.

3. Higher Engagement and Conversion Rates

​​By bringing products to life through engaging visuals, live demos, and real-time interaction, video content keeps viewers hooked longer and helps them make more confident purchase decisions.

The result? Higher engagement, better trust, and conversion rates that speak for themselves.

Source- State of Marketing Report by Hubspot, 2023

4. Rise of Social Commerce

Social media platforms have integrated video commerce features, making it easy for users to shop without leaving the app. Features like Instagram Shop, YouTube's shoppable ads, and TikTok Shopping have created seamless pathways for discovery-to-purchase journeys.

5. Technological Advancements

From augmented reality (AR) to AI-powered personalisation, technology has made video commerce more interactive. Customers can try on makeup virtually or see how a couch fits in their living room—all via video.

Why Video Commerce Works For Brands?

In a world where attention spans are shrinking and competition is growing, video commerce offers a unique way for brands to stand out. It combines storytelling, interactivity, and convenience to create a shopping experience that feels personal and engaging.

1. Enhanced Customer Engagement

Video content is more memorable and engaging, holding viewers' attention longer than traditional ads or static product descriptions.

2. Increased Conversion Rates

Ever bought something after watching a product video? It’s not surprising. Videos offer an immersive experience that helps customers better understand a product, making them feel more confident about their purchase decisions.

73% of consumers say they’re more likely to purchase a product after watching a video explaining it. [Report by Animoto, 2024]

It’s like having a personal shopping assistant guiding you through the process.

3. Improved Brand Recall

We’ve all seen a funny or impactful video that stays with us long after we’ve watched it. High-quality, entertaining videos don’t just make customers smile—they leave a lasting impression, which means they’re more likely to come back for more.

4. Global Reach

Livestreams and videos on social media platforms allow businesses to connect with a global audience in real-time, whether it’s showcasing a new launch or answering questions from customers around the world. The reach is instant and boundless.

The Online Video Platform Market Industry is expected to grow from 69.53 (USD Billion) in 2023 to 272.95 (USD Billion) by 2032. The Online Video Platform Market CAGR (growth rate) is expected to be around 16.41% during the forecast period (2024 - 2032). [Market Research Future Analysis]

5. Data-Driven Insights

The best part about video commerce? Brands get detailed insights into how well their content is performing. From engagement rates to click-through data, this feedback helps them fine-tune future campaigns, making each video more effective than the last.

How do you implement Video commerce?

Source- Wistia State of Video Report, 2024

Based on the data above, it's clear how prevalent video commerce has become and the various formats driving its growth. Let's explore the most significant ones below.

1. Livestream Shopping

Livestream shopping is like QVC for the digital age. Brands or influencers host live sessions where they showcase products, answer questions, and offer exclusive deals. This format is hugely popular in countries like China, where livestream commerce is projected to exceed $700 billion in sales by 2025.

When looking specifically at frequent users of live commerce, the average age globally was found to be between 33 and 36 years old—with those aged 25 to 34 years old representing the largest share of frequent live-commerce users. [The State of Live Commerce Report by McKinsey & Co.]

2. Shoppable Videos

Shoppable videos allow viewers to click on products directly in the video and add them to their cart. These are typically embedded on websites or shared on platforms like Instagram and Pinterest.

3. Product Demos and Tutorials

Pre-recorded videos showcasing how a product works or solving customer pain points are invaluable. For instance, a skincare brand might create tutorials to show customers how to use its products as part of a routine.

4. Interactive Video Ads

Interactive ads combine storytelling with Calls-To-Action(CTA), letting viewers explore products, customise options, or shop directly through the ad itself.

Neha shared a handy cheat sheet on when to use specific video commerce formats. Check it out below to see which approach works best for your brand!

Why is Video Commerce Here to Stay?

As consumer behaviour continues to shift towards more immersive visual experiences, video commerce is poised to keep growing. Consumers want instant, authentic interactions that make them feel connected to the brands they shop with.

Source- State of Marketing Report by Hubspot, 2024

This isn’t just a flash-in-the-pan trend—it’s a fundamental shift in how people discover and purchase products. And it’s here to stay.

If you haven’t jumped on the video commerce bandwagon yet, now’s the time to do it. People are no longer satisfied with static product images or long descriptions—they want to see products in action, hear stories behind them, and interact with brands in real-time.

Video commerce lets you do just that, offering a fun and engaging way to connect with customers. So, if you’re still sitting on the sidelines, it’s time to get in the game.

Trust us, your customers are already waiting for that next exciting shopping experience—why not make it happen for them?

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