A perceptive, well-thought out quote “An e-commerce firm can become India’s largest retailer by 2015..” by Mr. Vishal Mehta, CEO, Infibeam definitely heralds the arrival of the undeniable sway, influence and presence of the ecommerce industry in India.
Ecommerce market penetration
Because of the growing population, better internet connectivity, awareness, reachability and better earnings, the Asia-Pacific region is proving to be the world.s ecommerce market hub in 2015 with 33.4% of the total sales, compared with 31.7% in North America and 24.6% Western Europe which constitutes to be about 90% of the total global ecommerce market. China.s ecommerce presence shows a 183% increase from .77 billion to .218.3 billion by 2017. Gartner says that in 2014-15, India would be the ecommerce market leader with an expected sales growth of at least 70% from $3.5 billion in 2014 to $6 billion in 2015 reaching a projected average annual e-commerce sales growth of at least 25% until 2017.
It is believed that Indians spend 25.2% of their time on social networking websites. As per a 2011 Nielsen global online survey about 875 million consumers across the world choose to shop online. This shows a 40% rise from the 627 million online shoppers in 2009. The report reaffirms that during this period, 85% internet users shopped online. As per Google, India has over a 200 million internet users, half of them engage in online buying, and the number is only increasing.
Catching the Drift of Ecommerce in India
- Great prospects with estimated revenues of $125 to 160 billion by year 2025. The current revenues ranges around $10 billion
- India.s retail market is expected to cross $1.3 trillion by 2020 from the current market size of $500 billion. The retail sales with a 5% penetration is expected to grow about 6 times from the current $27 billion USD to $220 billion USD, across all categories and sections.
- Etailing or online retailing to forge ahead of online travel and the projected CAGR of etailing is about four times that of online travel. Etailing will attribute to about 50% of ecommerce by 2015
- More mergers apparent as VCs are not pumping in more capital and therefore the only logical step is for strategic mergers to happen
- The ecommerce wave has a direct bearing on the logistics industry and it is growing steadily with newer niche services, strategic partnerships and alliances like GATI-KWE budding
- To promote ecommerce an array of marketing channels are being employed. And the focus is of course, mobile marketing and tapping into the influence of social media to drive traffic
- Newer business models are emerging like combined categories and newer brands, with a key focus on better profits
- The figures of the burgeoning retail industry are mind boggling. The retail sector is worth around $900 billion 2014 of which online retailing is about 0.47%
- The rising smartphone presence has an impact on etailing, there are an estimated 450 million smartphone users in 2015 of which 100 million are 3G users
- An etailing favouring age group wherein the number of people below the age of 35 will reach 828 million by 2015 proves to be decisive and a game changer in the explosive growth of the ecommerce industry
- The steadily rising internet presence is also another pertinent factor. Year 2014 saw 120 million users that is expected to grow to 376 million by 2015
So What Propels The Etailing Growth And Its Undeniable Attraction?
- Etailers are not only focusing on brand value and presence but the all-important trust factor is consciously focused on as all etailers are aware that trust, reliance and dependence can also make or break their etailing business. Therefore, the marketing techniques adopted, focuses around the .Trust. factor majorly. This is done by offering CoD payment schemes, offering absolute deceit-proof delivery methods.
- Most logistics companies like GATI, Patel Integrate, Container Corp, ABC India and Transport Corp are pumping in more capital into bettering their logistics and the supply chain infrastructure. Etailers are tying up with smaller, third party logistics companies in smaller towns and cities to better their reach.
- Discounts, impromptu sales, well-marketed and advertised marathon one-day sale events are one of the other driving forces that increase online sales and presence.
- There is a significant growth in ecommerce venture capital funding. It has risen over 800% from 2009 to 2011 which is proof to the many successful ecommerce retailers having set up shop here.
- Certain product categories like electronics and books propel growth and are always a major draw as they do not require any specific advertising to push sales.
What Are The Ecommerce Opportunities To Tap?
In 2015, some of the opportunities worth exploring are processing and understanding the available information and putting it to better use in a practical way so as to achieve the desired impact. This can result in penetrating newer markets, scaling up operations so as to generate better returns. Employing strategically thought out campaigns like epitomized, distribution and devising customer-specific marketing models so as to increase the customer base.
The Power of Digital
The digital presence and relevance in the country is like never before. The established digital commerce has facilitated the growth spurt of the ecommerce industry and thus helped foster the relationship between the etailer and customer via mobile, laptops, computer and other digital sales medium.
At present the B2C model is established as compared to B2B that is still catching up. Because of the growing influence of mobile-oriented search, more online marketplaces, consumer goods and F&B organizations are focusing on bettering their digital visibility. Studies reveal that 30% of ecommerce search traffic for relevant ecommerce websites is from smartphones and tablets.
The digital market is gradually maturing with the aid of tools like web analytics and digital marketing.
The ecommerce market is fast-growing with newer, adaptable trends, increased market penetration aided by digital medium and dependable, responsible logistics providers like Container Corp, Transport Corp and GATI, good online presence and reach, user-friendly product categorizations, better buying power and improved economy.
Yes! Ecommerce has arrived of age in India!