Indian SFV market monetisation, a $8-12 bn opportunity by 2030: Redseer

In India, the Redseer report also said that video commerce has just started, with shortform video platforms expected to capture about 40 per cent of the $8-11 billion video commerce market in 2030

Indian short-form video (SFV) market monetisation is on the cusp of a breakout and could potentially be an opportunity of $8–12 billion by 2030, according to the latest report by Redseer Strategy Consultants.

Indian SFV apps have seen constant growth in adoption and engagement. Leading players have come close to global players in terms of scale while having similar engagement levels. The report highlighted that with a large and growing population of smartphone users, SFV apps have already gained significant popularity in India. The content library for Indian SFVs is in line with India’s needs – linguistically and culturally diverse.

Indian apps compare well with global short-form apps and have a lead on content depth in 3 of the 5 top content genres. There is a  significant difference in offerings around music, dance and dialogue and acting content.

The report showed that the preferred language for content consumption in metro and tier 1 cities is Hindi, followed by English and other regional languages. While regional languages find an audience across India, it’s of key preference in tier 2+ cities only.

For brands, influencer marketing is becoming an increasingly popular marketing strategy in India. The report projected the marketing spend on influencers to be worth $2.8-3.5 billion in 2028, from current level of $0.35-0.4 billion. The findings emphasized that there is a need for a tech-enabled, transparent, and scalable solution for influencers and brands to engage.

The report also observed that user-generated content (UGC) platforms are developing creator marketplaces that can become a centralized network for creators to connect with brands. This can benefit both creators and brands, as it provides a platform for creators to showcase their work and for brands to find suitable creators to work with.

"Currently, brands and influencers mostly engage via intermediary agencies – a model that is broken and lacks efficiency," said Mohit Rana, Partner, Redseer Strategy Consultants. "Agencies may take a significant cut of the compensation for their services, which can reduce the amount of money that influencers receive. And so, there is need for a tech-enabled, transparent and scalable solution. Creator marketplaces can bridge this gap."

Globally, Redseer said it sees short-form video platforms and e-commerce platforms are increasingly focusing on video commerce to enhance customer engagement and boost sales. 

In India, the report also said that video commerce has just started, with shortform video platforms expected to capture about 40 per cent of the $8-11 billion video commerce market in 2030. The top three categories being sold here include fashion and beauty and personal care and packaged food and beverages.