Skip to main content

Social Media: The Big Opportunity for Small Retailers

The buying and selling of products and services through social media, popularly known as social commerce, has the potential to empower over 40 million small businesses across India

In smaller towns and urban areas, Bottom of the Pyramid (BOP) turns into small-time retailers operating small retail outlets offering a range of merchandise. Typically using push carts, these small-time BOP sellers pay minimal to no real estate expenses. In India, unorganized retailing refers to conventional low-cost retail forms that frequently run tax-free. These small retailers are constantly innovating to gain exposure, although some remain resistant to change.

The social scenario

According to a report by Bain and Co. Sequoia India published in Fortune India, a staggering 85% of commercial transactions with small retailers are influenced by social media. This finding not only underscores the significant opportunity for small retailers to connect with their customers and attract new customers through social media but also paints a promising picture for the future of business, filled with potential and growth.

Social media has gone beyond merely being a platform for personal interactions to become a crucial tool for business growth in the digital age. For example, A tea vendor from Nagpur, Maharashtra named Dolly Chaiwala became famous on social media. SCORE research shows that 77% of smaller organizations use social media to increase sales, enhance customer service, and raise brand exposure. However, as per Statista, by 2027 there will be around six billion active social media users, up from the current over 4.59 billion. The buying and selling of products and services through social media, popularly known as social commerce, has the potential to empower over 40 million small businesses across India, showcasing the significant growth and success that can be achieved through social media. India has the second highest number of connected users globally, approximately 572 million; there is a vast untapped market for online retail, with only 8% currently shopping online. With India’s large, unorganized offline retail market, there is an excellent opportunity to digitize and vertically integrate the area.

Why should small retailers consider social media?

The capacity to communicate with a larger number of people is one of the most significant benefits of marketing through social media. For example, Bhuban Badyakar, a peanut salesman from West Bengal, used to sing ‘Kacha Badam’ to sell his peanuts, and the song became a viral sensation on social media. Since platforms such as Instagram, Facebook, and WhatsApp have millions of active users, it is much simpler for small-time BOP retailers to share their goods and services with a bigger pool of potential consumers. Additionally, social media allows these small-time BOP retailers to target particular neighbourhoods, and adjust their promotional content accordingly, increasing the likelihood of an individual making a purchase.

Social media campaigns are often less expensive than conventional advertising techniques like print or television. It allows small shops to interact with customers and advertise their goods without going over budget. In addition, it guarantees candid assessments and comments that can contribute to improving retail service. Social networking allows organizations to find these small-time bop retail stores and help them reach the country’s deeper pockets by expanding their distribution channels—for example, Hindustan Unilever’s Shakti Amma Project and E-Chaupal of ITC.

Social media can offer inexpensive or free educational materials and insights from experts. Small BOP retailers can reach a broader demographic, overcome geographical restrictions, and have access to locally developed products, which can serve as geographic markers and appeal to a diverse variety of target customers interested in these local, customized products, which results in supporting local small retailers. For example, The Dhanak, Rathwa, and Nayak tribes of Chhota Udepur, creating the items for personal use, had already begun selling them at local ‘haats.’ However, traditional clay utensils are finding a new market through social media.

The post Social Media: The Big Opportunity for Small Retailers appeared first on India Retailing.



from India Retailing https://ift.tt/LcHUuNP
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

Eagle Labs launches impirica CBD brand

ST. PETERSBURG, Fla. — Eagle Labs has launched impirica, a new brand of CBD intended to eliminate consumer fear, and increase confidence, in trying the exciting new cannabidiol category. Michael Law Although most Americans have now heard about CBD, many are very confused and concerned about product quality. This is inhibiting trial in the category and holding back conversion into sales. In fact, a 2017 study by Johns Hopkins University found that two out of three CBD products on the shelf did not contain the amount of CBD reflected on the label. Furthermore, in 2018 and 2019, the FDA sent notices to a substantial number of CBD manufacturers advising them of serious concerns about product quality or egregious medical claims. The impirica brand looks different than most CBD brands — the brand name itself connotes testing and trust, says Eagle Labs chief commercial officer Michael Law. “It doesn’t use the traditional category colors of browns and greens, and you won’t find a hemp lea
67 comments
Read more

Coronavirus Recovery: Canadian Small Businesses Must Focus on Easing Employee, Customer Fears

By M. Tina Dacin and Laura Rees A small business has been  given the green light to reopen amid the COVID-19 pandemic . What does it need to consider for employees and customers? Small business owners are reorganizing physical space to account for continued distancing requirements and rethinking supply chains to deliver products and services in new ways to meet changing demand patterns. But they must not forget the hearts and minds of employees and customers. That doesn’t mean replacing a focus on the bottom line, but it helps address the need for a new set of expectations and ways of communicating in terms of product or service offerings, delivery methods and real-time feedback. Based on our expertise in organizational behaviour and past research we’ve conducted, we provide a set of recommendations to help small businesses thrive in our new COVID-19 economy by looking after the hearts and minds of the people most important to businesses — employees and customers. Fear, Anxiety
Post a Comment
Read more

World's 1st Pizza Subscription Service Launches in Toronto

general assembly subscription user opening delivery box of pizza. photo: general assembly pizza By Mario Toneguzzi Toronto-based General Assembly Pizza has launched what it describes as the world’s first pizza subscription service as it also plans to aggressively expand its product offering in the near future by opening a new concept in the market. "Since opening our doors in 2017, we have pushed for the best guest-experience possible — that's why our dough is 100 percent naturally leavened, that's why we have a purpose-built 400-square-foot pick-up and delivery area, and that's why we’ve launched a direct-to-consumer subscription-based ecommerce platform,” said Founder & CEO Ali Khan Lalani. “In 2020, providing the best guest experience means General Assembly Pizza has to be more than a restaurant. I'm proud to say that after almost six months of planning, many roadblocks, and countless pivots — all while maintaining our day-to-day restaurant operatio
Post a Comment
Read more