The eCommerce We All Know Is Slowly Transforming
The next wave of transformations is underway
According to a study by Google and A.T. Kearney, the Indian etail industry is set grow at a vigorous pace by 2020 where the number of online buyers will reach to 175 million. The majority of the millions of Indians, who are set to access Internet in next three years —according to ASSOCHAM and Grant Thornton, will first access it through their smartphones. So, if you feel you have had enough of ecommerce, this is just the beginning of the revolution. The growth of the mobile industry and the rise of mobile shoppers are paving way for new opportunities for both e-tailers and customers.
In fact the industry has made deeper inroads in terms of superfluity of platforms and bespoke customer services such as Amazon Prime. This validates the latest findings of a study by InMobi, that Indian shoppers explore hundred options before buying an item online. Technology has been an enabler for all the transitions we have seen recently in ecommerce. Many e-tailing players have hired top-notch engineers and analytics wizards to be able to leverage innovative technologies and deliver finer customer experience. Flipkart being a very aggressive player makes it to bet on data and analytics to derive all their decisions.
For Amazon, India is the fastest growing geography already and they have come up with additional investment plan of $5 billion to take on Flipkart, Snapdeal who are also in the process raising more funds. Driven by factors such as consolidation activities and escalating funding, the ecommerce ecosystem in India is fast taking off to the next level.
Ironically despite the rapid pace of technological innovation across the ecommerce domain, and the increasing number of online shoppers coming onboard, ecommerce companies are constantly failing to make money from their existing models. For the industry to see a holistic growth, it’s also pivotal for these companies to come up with innovative business models and continue to fulfil customers clickstream.
The next wave of India ecommerce
The next wave of transformations is underway. One of them we have already gotten into is hyperlocal ecommerce —the brick and mortar extension of online store. The local brick and mortar retailers, which had to bear the brunt of increasing cashbacks, shopping convenience, and greater choice that ecommerce players offered to woo its customers, are now being looped into the larger picture.
Leading etailing providers are now betting on the local providers to fulfil demands of customers emanating from that region. A new generation of startups such as Grofers and Peppertap are tapping into this opportunity with their hyperlocal offerings. We have also seen initiatives such as Flipkart Nearby and Amazon Kirana Now launched in the recent past. So, the bottomline is that future of ecommerce is omni-channel retailing where bricks and mortar stores will play a pivotal role in fulfilling local demands.