Is Indian E-commerce Ahead of The Game?
India not only has the second-largest population in the world, but it also has the world's second-largest digital market spread across both urban & rural markets. Internet users in the country today are more than 500 million, with over 450 million smartphone users. With easy accessibility to the internet & technology, India has become the hub for e-commerce players.
So what is making it a triumph?
Well, it's like the universe has collaborated for it. Multiple forces are working in favour of making it a smashing hit. So has the climax been reached already? Of Course not! Today it's just poised to grow further and faster! Call it infrastructure, ecosystem, changing lifestyle, or demography, and on top of everything, the pandemic is bound to happen.
Let's have a quick overview.
Social distancing brought us closer to digital.
Social distancing encouraged us to adapt to 'the new normal'. Wait what! New Normal? People couldn't find anything new about the new normal. Stay at home, social distancing, the pandemic gave everyone a loss that can't ever be compensated. But the silver lining was it also hastened the growth of e-commerce in India. There was a complete shift in consumer behaviour. It led to new trends. People now prefer to shop with the ease and comfort of sitting at home rather than going out in the market.
It is true that the pandemic took away a lot of things from us, but it clearly resulted in a boom in the digital economy. As per this article, 67% of consumers are reported to shop differently now after Covid 19 crisis. Can we find a better case of a blessing in disguise? Arguably not!
Becoming a force that no investor can afford to ignore.
(Source: Cushla Sherlock, corporate communication, rejoiner.com)
India's e-commerce market is predicted to increase by 21.5%, reaching US $74.8 billion by this year. On a positive note, the Indian e-commerce market should reach US $ 200 billion by 2026 & predicted to grow further and achieve US $ 350 billion by 2030. Whoa! It's incredible beyond belief.
Broadly e-commerce comprises the online buying & selling of goods or services. Businesses such as Retail, wholesale, digital, physical products, services etc., can be accessed with just a click of a finger today. Not only the consumers but also the companies, entrepreneurs and even start-ups are making the most of it. For companies, it is beneficial as they can reach out to a wider audience at a significantly low cost & at the same time, consumers are benefited as shopping from home is more convenient & satisfying with a variety of product choices available.
The favourable infrastructure is the icing on the cake.
A huge network of mobile apps, digital payment systems, payment gateways, logistics and strong government policies have come together to make a smooth coordination between the consumer and the e-commerce industry, contributing to an easy & joyful buying & selling experience. As per Republicworld.com, India is 3rd in smartphone users globally.
With the ease of browsing through catalogues & completing the whole transaction just by tapping the finger, shoppers are now more comfortable using their mobile devices than their desktops.
Cross-border shopping is trending big time!
We couldn't have asked for more. Sitting wherever they want, shoppers can now buy online from outside their home country. As per beeketing.com, in the last six months, 57% of online shoppers made an online purchase from an overseas retailer. Today eCommerce is not just about online shopping; it's about going global.
So is it only between business & consumer?
E-Commerce is not restricted to only business and customer interface. The actual spectrum goes beyond. To our surprise, B2B e-commerce is a bigger success than B2C, as per beeketing.com. B2B e-commerce is nothing but the online business of products from one business to another. B2B e-commerce is projected to grow two times higher than B2C.
Bottomline is the future of e-commerce in India and globally is enormous. It is going to cross all the boundaries. We are yet to see some exciting changing trends, and some sensational statistics are yet to be experienced.
Although we have witnessed exponential upward growth in the e-commerce industry, there are some challenges as well. Digital literacy, risk in online transactions, cybercrime, and numerous unidentified & unsolved online frauds are some of the biggest issues that need to be addressed for organic growth in future.
The exceptional shift in the Indian e-commerce market and the global digital economy together have opened up unimaginable growth opportunities for the e-commerce industry in India.
If India can work on the inherent challenges and manages to tap into the marvellous ecosystem of fintech, user experience and countless product lines and portfolios, it is set to achieve its fair share of the dream of becoming a 5 billion USD economy.