Internet connectivity and smartphones are keys to India’s growing e-commerce industry. Latest statistics show that the India’s e-commerce market is expected to reach US$64 billion by 2020 and US$200 billion by 2026. Backed by e-commerce, India’s internet economy is expected to double from US$125 billion as of April 2017 to US$250 billion by 2020.
On-going digital revolution has consumers driven by mobile internet and cloud computing. India’s faster internet connections and the spread of smartphones have converted into more growth for online sellers. Businesses are riding high on social and content based commerce. The Indian government has also stepped into online business through initiatives such as ‘Make in India’; ‘Start-up India’; and ‘Digital India’.
Besides, the government has been role encouraging the masses to go digital by distributing rewards worth about Rs153.3 crore to one million customers for embracing digital payments under the Lucky Grahak Yojana and Digi-Dhan Vyapar Yojana.
Entrepreneurs experience a great deal of issues in e-commerce. And consumers don’t give much of a chance to other online sellers. They prefer to stay with the big names such as Amazon, Flipkart, Ebay or Snapdeal. Startups have to invest a lot in terms of establishing their brands and creating a niche in the market. They have to compete with businesses who put millions of dollars just into online advertisements. And digital marketing companies are coming up with newer techniques and strategies which are not easy on the wallet.
- Exponential Increase in E-Commerce till 2020
- Is Free and Open Internet the answer to Free information
- The Digital Flow: New Land of Opportunity!
- Software Market in India to Grow Rapidly
Hard work and gruelling content is needed to lure millions on social media to the e-commerce business sites. Furthermore, entrepreneurs have to keep up-to-date with technological changes. They have to have responsive websites because majority of their consumers and target audience use mobile devices like smartphones and tablets. They have do regular research to stay in the business.
Factors Driving E-commerce Growth
Private parties are also pushing the e-commerce market forward. As per KPMG’s report ‘#IndiaTrend2018: Trends Shaping Digital India’, technology has been playing a huge role in the business-to-consumer (B2C) and the business-to-business (B2B) transformation. “Some organizations have managed to leverage and combine the power of technology and the product/service, thus giving a new uplift to the traditional consumers’ need.” The report further states that new sub-segments such as health-tech, agri-tech and ed-tech are emerging from the business landscape.
Small medium enterprises are also setting into e-commerce for the consumers’ convenience. This has brought about multiple e-services ventures with the likes of ticket booking and listing businesses etc. E-payment or cashless transactions has proved to be convenient and this has also been applauded by the government. Majority of the e-commerce consumers are youths since they are tech-savvy. The CEO and Co-Founder of Urban Ladder Ashish Goel says online retailers have to reach out to the consumers. There is more hard work involved. And then there is the waiting game and the right content that clicks.
India is a fast growing, emerging Asian market, and is expected to become the second largest ecommerce market in the world, behind only China by 2034.