E-commerce has changed for good – never before has the environment been so conducive for an industry, which was regarded with skepticism since its inception. In the last few years, the adoption of e-commerce in India has grown exponentially. From being worth about $3.9 billion in 2009, online retail is worth $38 billion in 2016 according to Assocham. It is expected to generate about $100 billion in revenue in 2020. Despite a major hiccup towards the end of 2016 (read: demonetisation), e-commerce, on the whole, has seen a large uptick in India this year.
The year was full of new trends catching-up and old ones dying an untimely death. Here are 5 key trends the Indian eCommerce industry witnessed in 2016:
Flipkart, Snapdeal, Amazon India, eBay.in, Paytm and Shopclues are the top six eCommerce players of India who jointly drive almost 85% business of the country’s eCommerce industry. In the current year, these companies would go after profitable growth instead of attracting customers with huge discounts. Because providing high discounts ultimately drags majority of the companies towards losses!
E-commerce companies would emphasize more on attracting the customers from rural areas. Along with this, traditional business houses such as Tata Group and Reliance Industries will enter more aggressively into the eCommerce business.
As stated by Rajan Anandan, Managing Director, Google – South East Asia and India, “There were 50 million transacting users in 2015. This year it will be at least 75 million.” According to him, the majority of the traffic comprises customers using smartphone devices. However, users browse products on desktops or laptops, they prefer transacting via smartphones because of their faster linkages to payment gateways. Smartphone eCommerce apps are also preferred as they offer a more personalized shopping experience for customers and a better understanding of consumers for the eCommerce company. Further apps are also an opportunity to curate targeted promotions based on browsing or shopping cart history.,
Due to addition in the number of customers, the companies would be busy in serving them every possible thing in every possible way. This would encourage the companies to add some new product categories. Mr. Vijay Shekhar Sharma, the Founder of Paytm, believes that even milk and water will be delivered by the companies to their customers and this would replace the neighborhood store.
Cash on Delivery has been one of the most preferred payment options for the customers. But as more and more people are getting familiar with payment wallets for shopping and paying bills, the craze of COD is also going to reduce.
Though competition is high and market is same but there is always some more needed. E-Commerce market doesn’t need new products but need new services everyday. Starting from a magazine to an app-based platform is all that makes eCommerce industry. If you have an idea let’s discuss as we ourselves are advisors to many startups.