E- Commerce

    The e-commerce has transformed the way business is done in India. The Indian e-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. The value of e-commerce market is expected to cross US$ 50 billion by 2018. Much growth of the industry has been triggered by increasing internet and smartphone penetration.
    Online travel agents account for the largest market share (70 per cent) in the internet consumer market, while the remaining 30 per cent is occupied by horizontal e-tailing, fashion, furniture, grocery, hotel, food tech, cab aggregators, education technology, and alternative lending among others.
    The e-commerce industry been directly impacting the micro, small & medium enterprises (MSME) in India by providing means of financing, technology and training and has a favorable cascading effect on other industries as well.

    M-Commerce

    In 2015, mobile retail e-commerce sales in India amounted to 6.02 billion U.S. dollars and are projected to reach 37.96 billion U.S. dollars in 2020. This significant growth in mobile retail e-commerce can be attributed to several factors.

    Firstly, the Indian government has set a goal of achieving 25 billion digital transactions for the fiscal year ending March 31, 2018. With the number of people registered in the Aadhaar database, this translates to an average of 24 to 25 transactions per person. This ambitious target seems within reach, especially when considering the government’s plan to mandate electronic payments for all gas stations, hospitals, and universities.

    Additionally, the government’s decision to ban cash transactions over $4,500 further encourages the use of electronic payments. This move promotes transparency and accountability in the economy, as electronic transactions leave a clear digital trail.

    To support the shift towards digital payments, the Indian government has already taken steps to ease the adoption of electronic transaction devices. Taxes on all devices used for electronic transactions, such as point-of-sale machines and biometric scanners, have been eliminated. This measure aims to make these devices more affordable and accessible, further driving the growth of India’s digital economy.

    It is anticipated that these combined efforts will propel India to become the world’s fastest-growing economy. With a conducive environment for digital transactions and a rapidly expanding e-commerce market, India is poised to experience remarkable economic development in the coming years.

    The adoption of electronic payments not only benefits the Indian economy but also brings numerous advantages to individuals and businesses. It offers convenience, speed, and enhanced security when compared to traditional cash transactions. Moreover, it reduces the risks associated with carrying large sums of cash, making transactions safer for both consumers and merchants.

    In conclusion, the Indian government’s proactive measures to promote digital transactions and the widespread adoption of electronic payments contribute to the optimistic outlook for the country’s e-commerce sector. India’s transition towards a digital economy is poised to revolutionize the way people transact, streamlining processes and fostering economic growth.

    Retail

    The Indian retail industry has witnessed a remarkable transformation in recent years, marked by the entry of numerous new players. This vibrant and fast-paced industry plays a significant role in the country’s economic landscape, contributing over 10 per cent to India’s Gross Domestic Product (GDP) and generating employment for approximately 8 per cent of the population. It comes as no surprise that India has emerged as the world’s fifth-largest retail destination.

    One of the key factors driving the growth of the Indian retail industry is its vast consumer base. With the second-largest population in the world and a sizeable middle class, there is immense potential waiting to be tapped. Additionally, rapid urbanization and the solid growth of the internet have further fueled the expansion of the sector.

    When it comes to e-commerce, India is making remarkable strides in the Business to Business (B2B) space. It is projected that the B2B e-commerce market in India will reach a staggering US$ 700 billion by the year 2020. This highlights the tremendous opportunities for businesses to thrive in the online realm. The online retail segment itself has experienced remarkable growth, witnessing a 23 per cent increase to reach $17.8 billion in 2017. It is predicted that online retail will soon be at par with physical stores in the next five years, illustrating the evolving buying habits of Indian consumers.

    Furthermore, the potential for consumer-centric businesses in India, also known as Business to Consumer (B2C) ventures, is estimated to be around US$ 26 billion. It is interesting to note that a study conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Indian Institute of Foreign Trade (IIFT) reveals that the Indian market can achieve $3 billion out of this potential within the next three years across 16 different product categories. This demonstrates the vast untapped consumer demand that businesses can tap into.

    Notably, India has taken over China as the most promising market for retail expansion. This feat can be attributed to the country’s expanding economy, the increasing rate of consumption, the urbanization of its population, and the growth of the middle class. These factors collectively create a favorable environment for businesses to thrive and establish a strong presence in the Indian retail industry.

    In conclusion, the Indian retail industry is poised for a bright and prosperous future. With a large consumer base, significant e-commerce growth, and a promising consumer market, businesses have ample opportunities to harness the potential within the Indian retail sector and leverage the favorable conditions to achieve remarkable success.

    Areas of Expertise

    • Building and implementing a brand strategy for your ecommerce.
    • Strategic partnership when you are starting something online.
    • Consultancy for web & app development to creates user-centric websites and apps.
    • Expert consultancy on products and platform building.
    • Business solutions to take your ecommerce business to the very next level with least turnaround time.