In India, eCommerce has turned out to be one of the fastest-growing industries. By 2021, the Indian eCommerce industry size is estimated to touch 5.9 Lakh crore rupees. Interestingly, new trends are emerging within the eCommerce domain. In the urban areas in India, eCommerce purchase is proving to be a mainstream phenomenon. The number of customers shopping through the internet is on the rise.
In India, the concept of eCommerce is not new. Some of you may be knowing about the initial domestic players, like Sify Shopping, Yahoo! Shopping and Rediff Shopping. Some of these are in the market since the early 2000s. However, these portals failed to emerge as the leading eCommerce sites in India.
How Is The Ecommerce Industry Changing In India?
The eCommerce market has drastically evolved in the last decade. With the development of telecom infrastructure in India, customers have a greater access to data packages. Besides, a number of start-up firms are carrying out online business successfully in India. Presently, the leading market players in the eCommerce domain include Amazon, Flipkart and Snapdeal. In 2012-13, the growth rate of Flipkart was 476%. This shows the aggressive nature of the growth of eCommerce companies in India.
In the urban areas, the benefit of carrying out eCommerce business is the access to customers. Since the roadways are well-developed, the logistics and shipment partners are able to deliver the products seamlessly. The urban customers, primarily consisting of millennials, are more open to new products, particularly online goods. As a result, eCommerce purchases are becoming mainstream in urban areas.
Ecommerce companies, too, roll out lucrative deals and discounts to lure the customers. Besides, they recommend products, based on their browsing habits. Technology has greatly fostered the change in the eCommerce segment in India.
Growth Of Ecommerce In Indian Cities
Apart from the tier I cities, the tier II and III cities have also witnessed the influx of 4G internet. It is expected by 2030, the eCommerce segment will contribute to 2.5% of the Indian GDP. Apart from the domestic companies, global players like Alibaba and Amazon are competing in the market. The urban customers, with the exposure to international brands through these portals, are keen to explore these products. India is a favourite destination for eCommerce companies to flourish due to several reasons.
Telecom Infrastructure
The number of internet users who use broadband is increasing in India. By the end of 2019, India is likely to have more than over 50 crore internet users. In December 2013, the number of internet users in India crossed 30 crores. Besides, a lot of money was pumped into the telecom sector, so that the customers could enjoy 3G and 4G internet. This has made the urban consumers more connected to the globe. They can purchase goods from the desired brands online and get the products shipped.
Growth Of The Mobile Market
The smartphone industry in India has grown exponentially, further leveraging eCommerce. It is evident that internet users download eCommerce applications on their handsets. This brings them to a closer proximity to the eCommerce industry. Besides, India is the fastest-growing mobile market in the world. This too, is an important factor, leading to the success of eCommerce companies in India.
Presently, established companies are expanding to the digital platforms. The eCommerce companies have tremendous growth potential in India in the coming years. The marketing landscape of companies is rapidly evolving with the inception of eCommerce company in India.
