Rapid growth of quick commerce in India’s smaller towns driven by AI and influencers: Meta Research
Rapid growth of quick commerce in India's smaller towns driven by AI and influencers: Meta Research
Meta has released results from two studies examining the trends in India’s e-commerce sector, particularly highlighting the rise of Quick Commerce (Q-Commerce) services and the growing trend of online shopping in tier-2 and tier-3 cities. The studies indicate that factors such as AI-driven personalization, social media influencers, and the utilization of messaging apps are significant contributors to these developments.
The research on Quick Commerce, carried out by GWI and commissioned by Meta, involved a survey of more than 2,500 internet users aged 16 to 64 throughout India. The findings showed a strong awareness and utilization of Q-Commerce services, with 90% of participants recognizing these platforms and 50% having used them in the previous week. While grocery and personal care items are the most frequently purchased, niche categories such as skincare, wellness, and hair care are also becoming more popular. Meta reports that 86% of participants discovered new Q-Commerce brands or products through their services, which are said to drive higher click-through and purchase rates compared to other platforms.
Social media influencers and creators play a vital role in helping consumers discover products and engage with brands. According to the findings, over a third of respondents found products or brands through influencers, and 30% made purchases based on their suggestions. Among Gen Z, a remarkable 87% discovered new brands or products via Meta platforms, with an increasing interest in niche categories such as sportswear and pet supplies.
In another study commissioned by Meta, the online shopping habits of 2,182 internet users from tier-2 and tier-3 cities were analyzed. The most commonly purchased items online include fashion, food, beauty products, and mobile devices. For larger items like jewelry, electronics, and home furnishings, there is a nearly equal preference for online and offline shopping. Social media serves as a major discovery platform, with 68% of respondents in these regions finding products or brands through it. Reels (59%) and influencers (57%) are particularly effective in this regard. Additionally, messaging platforms have gained popularity, with more than half of the respondents using them to make purchases over the past year, and WhatsApp leading with a 95% usage rate.
Influencers have a considerable impact on consumer decisions, especially in smaller towns. Among those who follow influencers, 46% reported that influencer content, including product promotions and comparisons, affected their buying choices. The studies indicate that smaller towns are on the verge of substantial e-commerce growth, fueled by the convenience of Quick Commerce and the influence of social media. Platforms like Meta are well-positioned to be a key player in this change, particularly with the growing impact of AI-driven personalization and engagement through influencers in shaping consumer choices. These insights reveal the opportunities for e-commerce growth in smaller towns, while also stressing the need to modify strategies to align with changing consumer preferences.
