India is the fastest growing e-commerce market in the Asia-Pacific region and one of the most sought after investment options.
E-Commerce Redefining the Indian Market
E-commerce is the buying and selling of goods, services, transferring funds or data, or any other kind of transaction executed through an electronic network -primarily the Internet. This has resulted in a change to the concept of time. There has been a rise in the less-time-in-hand section of the society. Free home delivery, lucrative offers and deals and ease of operation has made e-commerce a favourite among the Indian populace. E-commerce is available in most fields of business like online goods and services, retail services, ebooks, software, streaming media, Banking, home delivery, distribution services and logistics.
According to a Google and AT Kearney study, online commerce will drive 25% of organised retail and will be of GMV $60 billion by 2020. The social ecommerce landscape is changing, with so many of social networks opening up their systems for selling.
Payment Modes are flexible for services, purchasers and sellers like:
- Cash on Delivery
- Debit Cards
- Credit Cards
- Internet Banking
- Cash Cards/Mobile Wallets
Trends of E-Commerce
The evolving trends can be classified into 3 e-commerce trades:
- Travel and Tourism Industry – A large segment of the e-commerce market is dominated by the travel industry. A consumer can choose a destination or a holiday package, book tickets and accommodation anywhere in the world. According to IAMAI and IMRB estimates, online travel, which includes domestic air ticket and railways booking, is expected to grow around 40% to reach Rs 1,22,815 crore by end of 2016.
- eTailing (selling retail goods via the internet) – Allows consumer to browse, order and pay online. It is a dominant category amongst non-travel online spends. Mobile phone and mobile accessories were the drivers of 57% growth in e-tailing with computer, consumer electronics, apparel and accessories contributing to 49% of overall spend.
- eShopping – Applies to apparel, baby care, footwear and beauty and personal care products, laptops, tablets, other electronics, home furnishings and books, mobiles and accessories where a consumer goes to a particular site to order. However, even though a report by Kleiner Perkins Caufield Byers says that the number of internet users in India grew by 40% in 2015 to 277 million; start-up executives and investors say that the number of internet savvy users transacting (online shopping) hasn’t increased at a similar rate. “It seems like investors and analysts have overestimated the growth of e-commerce,” said Rutvik Doshi, director, Inventus (India) Advisors, a venture capital firm.
E-Shipping – Fastest Growing Trend
E-shopping or online shopping is the fastest growing trend. Today consumers want their entire needs online – at their finger tips – literally!! Everything at a click or a press. Electronic media advertising has a very wide reach which is the cause of the surge in e-commerce. Pop-up ads are making a comeback to grab the attention of the viewers by focusing on large images or descriptive video clips enticing people to use the internet. More and more people are venturing into net banking. Paying utility bills, Government documentation, etc has never been easier as with eCommerce or mobile commerce. In fact, Gati E-connect, Gati’s e-commerce logistics solutions vertical, has an extensive reach of over 99% of districts in India with direct ‘Cash on Delivery’ and ‘Prepaid’ facility to over 5120 pin codes and a reach to 15,400 remote pin codes so that consumers in even remote parts of the country can be reached. With such smart logistics solutions, B2B, B2C and even C2C requirements of e-shipping are fulfilled easily thus fuelling the growth of this booming sector.
From fund transfers to documentation to home deliveries of every kind to logistics e-commerce has successfully scaled new heights. And there is always scope for more!