Despite numerous regulations being imposed on the e-commerce sector in the past of a couple of years, e-commerce is set to become a trillion-dollar industry in India by 2021. E-commerce has grown up as the future of retail business in the past few years.
Deloitte India, a consultancy firm along with Retailers Association of India (RAI) reported that India’s e-commerce industry is expected to grow up to $1.2 trillion by 2021. The currently it is valued at $200 billion.
Above information was reported in a report titled as – Unravelling the Indian Customer. According to it, Indian e-commerce is growing at CAGR 32 per cent. There have been some major developments in India related to the e-commerce industry. To highlight some:
Walmart acquired Flipkart for $16 billion. Walmart is expected to launch a number of offline stores in India to promote segments such as fashion and electronics.
Paytm has launched its Paytm Payment bank. The bank provides the facility of online transactions at zero charges. Also, there is no condition of maintaining a minimum balance. The user also gets a virtual debit card for free.
Reliance is already testing its food and grocery app. It is set to launch its fully functional e-commerce store this year.
Google is also planning to enter the e-commerce industry in India in collaboration with Tata.
With the growth of e-commerce, an expert has predicted the following trends in the e-commerce section in India:
Growth of Phygital Stores
Retailers are now following a new trend of Phygital Stores. The terms refer to a store which is made out of a combination of digital technology and physical products. Retailers are now selling their physical products on the digital platforms giving rise to what ultimately constitutes the basic notion of e-commerce. Firstcry which started in 2012 as an offline children merchandise store has now more than 300 franchise stores all over India. Nykaa, a fashion store has done an excellent job in promoting their brand and store over online channels. Myntra has also started its own private brand under the label of ‘Roadster’ in India.
Experiential Nature of Marketing
Some of us are still living in a bubble and we often forget that the majority lives outside of it. Experiential marketing has proven to a great method of bridging that gap. The fact that over 60% of customers prefer to visit offline stores and shops before they make purchases online proves a lot about the potential of experiential marketing. Creating seamless omnichannel experiences isn’t an all-new thing but, many retailers are tweaking their sales strategies to incorporate this into their marketing mix. For instance, tea brand “Teabox”, has now opened its new store in Bengaluru. We will see a lot more of this for niche categories where customers feel the need to experience products before committing to purchases.
The Rise of Social Media and E-commerce
The penetration and ever-increasing usage of internet, largely caused by the role of telecom players like Jio has caused an increase in time being spent on social media. A staggering 91% of internet users spend their leisure time on social networks. Online businesses, of course, are aware of this and exploiting this – we’ve all seen marketing posts on Instagram, Pinterest and Facebook. Now, things are going beyond that. Social commerce platforms like Meesho are helping people start their own online stores. CashKaro too is building a social deal sharing platform called ‘EarnKaro’ by consolidating the use of referral and word of mouth marketing through social media. We surely can expect a lot of e-commerce promoters and enablers to rise this year.
Consistent Market Growth for E-Commerce Giants
The Indian e-commerce industry is set to cross the milestone of $100 billion in the coming five years. Online stores like Flipkart are now garnering $100 million in a single day via means of their exclusive sale days. Everyone in India is aware of Big Billion Day which is the trademark event of Flipkart to offer huge discounts and benefits to its customers. Ecommerce ancillaries such as logistics, vendor management and inventory management among others will now become indispensable. This has opened a plethora of employment opportunities in & around the e-commerce realm. Moreover, Private Equity firms such as Equirus Capital have been advocating e-commerce ancillary firms raise funds – a trend we expect is only destined to grow.
Influencer Marketing is Here to Stay
This year brands have set aside bigger budgets for Influencer Marketing and it will be a legitimate part of their marketing expenditure and budgets. We will also see brands focusing on filtration of influencers to ensure they have genuine followers. This is one of the key strengths of influencer marketing divisions of successful e-commerce players in India. In reality, platforms like Instagram, Youtube and Facebook have already cracked down on fake influencers to a huge extent. Influencer Marketing will therefore really grow into its own in the coming years.