A Study of the Role of Social Media in Impulsive and Compulsive Shopping among Consumers

Abstract

Around the world, shopping has become a means of self-fulfillment in a quest for newlineproducts that satisfy their wants, not just needs. Spontaneous and unplanned shopping newlineaccounts for huge volumes of purchases globally. In India, with a steady GDP growth newlineof 6-7 % , the GDP per capita has been above $2,100 since FY 2020; consumption newlineculture is on the rise, resulting in the accelerated growth of the retail industry. This has newlineput India on the world map as the 4th largest retail market in the world (Source: Invest newlineIndia- Government of India Publication). India s retail sector is growing at 18 % CAGR newlineand is expected to reach $1.1Trillion by FY 2027. It accounts for 10% of India s GDP newlineand 8% of India s workforce. newlineThe Indian Consumer has transitioned from rational purchases to indulgences. The newlinestrongly rooted Indian values of living a simple and frugal life have been replaced by newlineConspicuous consumption. Materialism, in pursuit of happiness and success has newlineengulfed the mindscape of the Indian consumer. In a hurry to pronounce one s social newlinestatus and achievements, products are extensions of one s self. The market has also newlineevolved due to the radical transformation in affluence, ease of financial credit, exposure newlineto the Western lifestyle, adoption of new technology and unprecedented access to global newlineproducts. Internet penetration swelled to 45 % in FY 2021 from a meagre 4% in FY newline2007. The burgeoning E-commerce sector of retail is growing at 18 % CAGR is at $ newline60 billion in FY 2023 and is projected to touch $ 350 billion in gross merchandise value newlineby FY 2030(Source : IBEF- Ministry of Commerce and Industry,India). 70 % of active newlineinternet users, use social media actively(Source :Statista). This has made way for social newlinecommerce; a budding from of commerce rooted in social media. In FY 2022, 24 % of newlineonline shopping was through social media platforms (Source: Statitsa) newline