Neha Agrahari on Flipkart’s big video commerce push for festive season this year

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Shopping in India is evolving rapidly, with video commerce emerging as one of the most engaging ways for consumers to discover and buy products. This innovative format allows customers to interact with products in real time through videos, ask questions, and make informed decisions. While still in its early stages, video commerce is quickly gaining popularity, especially among Gen Z and shoppers from Tier 2+ cities, thanks to its relatability, trust, ease of access, and the ability to offer a more interactive shopping experience.

In this exclusive Ag Talk interaction with Adgully, Neha Agrahari, Senior Director - Video Commerce, Flipkart, discusses how the e-commerce platform is leading the way by integrating video content across its platform. Agrahari shares insights into the rising interest in live commerce, shoppable videos, and inspiration-led content – formats that are transforming the digital shopping experience. She also highlights Flipkart’s focus on making video shopping accessible to diverse audiences, including regional language content, and how farmers, small retailers, and content creatorsare benefiting from this growing trend.

For quite some time, video commerce and live commerce in India hadn’t taken off. How do you view the growth of video commerce in the recent times?

While the concept of video-driven shopping is relatively new in India, it’s important to note that many consumers already use videos to inform their purchase decisions, even if they aren’t completing the entire transaction through a video platform yet. Video commerce in India has rapidly gained traction by offering a more dynamic and engaging shopping experience. The format enables customers to interact with products in real-time, ask questions, and make well-informed purchase decisions, marking a significant evolution in consumer behaviour too. The journey towards a fully integrated video commerce experience – where customers begin their shopping journey with a video, make choices based on it, and complete the purchase seamlessly – is in progress.

According to McKinsey & Co, companies report conversion rates through video commerce are up to 30% higher than in conventional e-commerce. Gen Z, in particular, is driving this trend, actively engaging with and discussing products through video.

Three main reasons why customers from primarily <30 years age group and T2+ regions flock to this format are relatability, trust, ease of access, and interactivity (specifically live chat and comments). Top categories today include fashion, beauty, personal care, home decor and furnishing – especially among T2+ customers.

We’ve also observed a notable increase in user interactions during live streams on the Flipkart app, with customers actively chatting, asking questions about products, and even requesting specific deals. This shift towards interactive shopping highlights a growing acceptance and familiarity with the format

This surge in engagement suggests that more users are exploring video commerce as a viable shopping option. Interestingly, the time of day and the demographic watching these videos provide insights into the changing behaviour. Women shoppers choose afternoons, while Gen Z engages with content primarily in the evenings. This pattern shows a diversification in how different groups interact with video content, further indicating the broadening appeal of video commerce.

In June this year, Flipkart released data on how Indians spent over 20 lakh hours video shopping in the last year. What were some key observations from this rise in video shopping?

The increase in video shopping hours highlights an ongoing effort to teach and help create new shopping opportunities for Indian consumers. As more users spend time on the Flipkart app and explore different types of video content, they are gradually becoming accustomed to this new way of shopping. This habit formation is crucial for the long-term success of video commerce as it becomes a more embedded part of the digital shopping experience.

In the run up to our much awaited ‘The Big Billion Days’ shopping festival, we are planning to unveil several video commerce engagements that will make the festive season even more engaging and special. Considering how customers are now looking at video commerce for trusted access to relevant product curations for them, we believe that the festive season is the best time to accelerate our offerings and explore new formats.

Flipkart’s strategy for video commerce involves a multi-format approach to cater to different consumer preferences and behaviors. The three main formats are:

• Live Commerce: This format allows real-time interaction between sellers and buyers, making it a dynamic and engaging experience.
• Shoppable Videos: These videos transform traditional e-commerce listings into interactive, video-based content, offering a richer product exploration experience
• Inspiration-led Content: Similar to social media, this content is designed to inspire and engage users, often showcasing lifestyle applications of products.

Our approach to video commerce is not just about placing videos at a single destination on the app. Instead, videos are integrated throughout the user journey on the platform. For example:

• Search Option: When users search for a particular product of clothing, they're presented with curated video results, such as influencer-recommended selections, which help them make quicker decisions
• Product Pages: When users are browsing or searching for specific products, they encounter videos that provide product demonstrations or user-generated reviews, enhancing the decision-making process
• Home Page: For users in an exploratory phase, the homepage offers a variety of video content such as influencer-led content and live streams to spark interest and guide them through a more immersive shopping experience.

We have observed that users are responding differently to each format, which indicates that video commerce in India is still evolving. Flipkart aims to make video shopping a seamless part of the user’s journey by ensuring it feels native and immersive. The goal is to integrate video content in a way that enhances the overall shopping experience rather than feeling like a separate addition.

What are the biggest opportunities for video commerce’s growth in India? What is the video commerce user base that you expect in the next 2-3 years?

Video commerce in India is set for significant growth and Flipkart is uniquely positioned to play a role in this journey. The key opportunity lies in leveraging our deep understanding of the diverse Indian shopper landscape. With over 500 million registered users, we have the insights to create a video commerce experience that is both easily discoverable and highly relevant to various consumer segments. One of the biggest opportunities for video commerce in India lies in expanding content in regional languages. This approach can tap into the vast consumer base in Tier 2 and Tier 3 cities, making the platform more inclusive and accessible to a diverse audience. Collaborating with local influencers and content creators can help brands reach a more targeted audience.

Video commerce holds the potential to enable a sustainable business model and new income opportunities for creators. Currently, many creators mimic the revenue paths of celebrities by monetizing their content through brand partnerships, sponsorships and product placements to name a few. By allowing them to showcase products within their content and potentially directly drive sales, creators can build a more sustainable and scalable revenue model via video commerce. This shift can enable a broader range of creators to thrive. It will help them drive engagement and build trust with their followers, thereby making them more likely to engage with video commerce offerings.

The growth of video commerce is inevitable as more consumers are showing a preference for interactive and engaging shopping experiences. This trend is particularly pronounced among younger audiences and tech-savvy consumers who are more familiar with video content. Additionally, video commerce offers an inclusive platform where anyone and everyone can become a video shopper due to its simplicity and accessibility. By continuing to innovate and enhance our platform, we at Flipkart aim to make video commerce a mainstream shopping format in India, tapping into the evolving preferences of our large and diverse user base.

What are the possible barriers that exist when it comes to video commerce? How is Flipkart tackling these challenges?

The video commerce landscape is a relatively new industry, where rather than barriers, we see a tremendous pool of opportunities. The shift towards video commerce represents a significant change in the ecosystem, similar to the early days of e-commerce in India when sellers were slowly beginning to embrace online platforms. Similar to how Flipkart helped sellers navigate that initial shift, we are now focused on guiding them through the evolution towards video commerce. The primary opportunity lies in educating sellers and brands about the potential of video as a powerful medium for commerce. Video commerce is not just about selling products; it’s about creating engaging, educational, and entertaining content that resonates with consumers. We have already seen substantial progress in this area, with many sellers and brands warming up to the idea of leveraging video to enhance their marketing strategies.

The journey towards fully embracing video commerce requires a supportive creative ecosystem. We at Flipkart are committed to helping this ecosystem see the unique advantages of video commerce, encouraging innovation rather than merely replicating existing models. By fostering a creative economy that understands the merits of video commerce, we are enabling sellers, brands, and content creators to develop their own distinctive paths to success. Flipkart’s role is to provide the tools, insights, and support necessary for this transition. We are actively working to ensure that our platform is a space where creativity thrives and where sellers and brands can explore the vast opportunities video commerce presents.

Could you tell us in depth how Indians are choosing a variety of products through Flipkart’s Video Commerce offerings?

Indians are increasingly choosing a variety of products through Flipkart’s video commerce offerings, driven by a desire for trust, authenticity, and a more interactive shopping experience. Video commerce is transforming the way people shop online, much like bringing the in-store experience directly to their screens. For example, consider categories like fresh produce, where trust in quality and authenticity is paramount. Buying mangoes through video commerce might not be the first thing that comes to mind for most consumers, but it illustrates the power of this medium. We enabled mango farmers to connect directly with consumers via live streaming earlier this year. During these sessions, farmers could showcase their cultivation processes and explain how they ensure the quality of their Alphonso mangoes. This not only educated consumers about the product, but also built trust by offering a direct connection to the source, resulting in a sell-out within minutes.

Video commerce allows customers to have a shopping experience akin to being in a store. They can see demonstrations of products, ask questions in real time, and receive responses directly from sellers or influencers. For instance, if a customer is interested in kitchen tools, a live stream can show the product in action, providing a clearer sense of its functionality and quality. This visual and interactive experience helps customers make more informed decisions.

Moreover, video commerce caters to the need for a personalized shopping experience. It can replicate an offline interaction by enabling users to ask creators’ or influencers’ specific questions, such as requesting to see a product in a particular colour or getting personalized beauty advice from an influencer they trust. This level of interaction fosters a deeper connection and enhances the user experience, making online shopping more engaging and satisfying. Flipkart’s video commerce offerings brings the touch-and-feel experience online, creating a unique blend of convenience and personalization that appeals to a broad spectrum of Indian consumers.

Please explain more about the Alphonso mango video stream, which went live on May 15 in Bangalore, Hyderabad, and Chennai.

The Alphonso Mango video stream was designed to create a direct connection between farmers and customers, allowing consumers to experience the freshness and quality of the produce in real-time. Bangalore, Hyderabad, and Chennai were selected as launch cities for this initiative due to their high engagement with Flipkart’s video commerce platform – to maximize impact and reach within a region where video commerce is rapidly growing. This initiative directly benefited 15 farmers from Ratnagiri, Maharashtra, providing them with a unique opportunity to connect with a wider audience through video commerce.

The campaign demonstrated significant growth over the business-as-usual (BAU) performance, and the format was strategically designed to maximize reach and engagement. The stream was featured prominently via a home page widget, available in two time slots (9 am to 11 am and 6 pm to 8 pm). Buying mangoes through video commerce might not be the first thing that comes to mind for most consumers, but it illustrates the power of this medium. We enabled mango farmers to connect directly with consumers via live streaming. During these sessions, farmers could showcase their cultivation processes and explain how they ensure the quality of their Alphonso mangoes. This not only educated consumers about the product but also built trust by offering a direct connection to the source, resulting in a sell-out within minutes.

How are various stakeholders – including farmers, D2C brands, and sellers – benefitting from enhanced visibility, increased sales, and direct customer engagement and broader audience reach?

For many small retailers and sellers, gaining discovery distribution is one of the biggest challenges. They often lack the financial resources to invest heavily in social media advertising or brand-building activities, which can be capital-intensive. Video commerce simplifies this by offering them a platform where they can showcase their products directly to consumers without the hefty cost of traditional marketing. For example, Flipkart has enabled an ecosystem where sellers have access to creators and influencers who can effectively promote their products. Live streaming and video commerce have proven to be effective sales drivers. Sellers who participate in Flipkart’s live stream events often see a notable increase in sales. For instance, in recent live streams conducted in August, sellers who previously struggled to gain attention in the traditional e-commerce setting saw a significant uptick in their sales. This was particularly true for sellers with unique selections that hadn’t received much exposure before. The live streams not only help in showcasing these products, but also in creating a direct line of communication with customers, leading to a baseline shift in product sales and improved sell-through rates.

Video commerce fosters a more interactive and engaging shopping experience. Farmers, for example, can use live streaming to showcase their produce, explain their farming processes, and directly answer customer queries. This builds trust and authenticity, which are crucial in categories like fresh produce. D2C brands can leverage video to demonstrate the use of their products, provide tutorials, and engage with their audience in real-time, thereby building stronger relationships and encouraging repeat purchases.

By participating in video commerce, stakeholders can tap into a much broader audience. Video content is inherently more engaging and shareable, allowing products and brands to reach potential customers who might not have discovered them otherwise. This broader reach is especially beneficial for niche products or brands that might not have the means to engage in extensive marketing campaigns. For example, by continuously participating in live streams and video promotions, sellers can maintain and even expand their audience base, ensuring that their products are regularly in front of potential buyers.

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