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, with significant difference in offerings around Music/Dance & Dialogue/Acting content.
Furthermore, 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.
According to the report, Indian short-form video (SFV) market monetisation is at the cusp of a breakout and could potentially be an opportunity of $8-12 billion by 2030.
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. 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”, says Mohit Rana, partner, Redseer Strategy Consultants.
Globally, we see short-form video platforms and eCommerce platforms are increasingly focusing on video commerce to enhance customer engagement and boost sales. In India, video commerce has just started, with short form video platforms expected to capture ~40 percent of the $8-11 billion video commerce market in 2030 – top three categories being sold to be Fashion and beauty & personal care and packaged food & beverages.
The report also highlighted that virtual gifting on short-form video platforms in India is expected to become $1.7 billion by 2030.