Indian E-commerce Industry exceptional Growth and Development

Today, E-commerce has opened up new ways of consumerism in India. People are very much convenient with online purchases and trading. The way it reduces the time, effort and money to find the right product and gets it selected is awesome. The power to choose from a large variety of the products and services through a mobile screen, share it for further evaluation and once selected, buy it in a few taps is really an amazing experience for Indian consumers. It cuts down keeping the inventory here and there for display significantly. With the power of accessible internet round the clock really meant for it. Being the second-largest internet user base country; around 480 million, India is just behind China. But, this is also true that India is lagging behind e-commerce compared to the USA and European countries. However, the numbers are growing by 6 million newcomers every month.

The major e-commerce companies in India are Amazon, Flipkart, Snapdeal, Paytm and many more are coming up.

A lot of work is going on in this space in terms of mergers, acquisitions, and policies. Recently, Walmart has engaged with Flipkart, while Flipkart with Myntra. Amazon is adding new values in the market day today and becomes the largest e-commerce company in India. In fact, the Indian online market is in a phase of consolidation where e-commerce is witnessing strategic partnerships, inbound and outbound fundraising. Companies are nowadays, seeking higher technologies, intellectuals, and talents to broaden the spectrum of their business.

Market Potential: A Review

Year on year since 2009, the e-commerce has grown up tremendously. In the early days it was considered to be a very high-fi Fonda, but in just a few years e-commerce proved to be a necessity of the changing times. In 2009 the e-commerce market size was just US$3. 9 billion.

In 2011, it was estimated to the tune of $6.3 billion by a research firm Avendus capital. At this rally, online travel has a significant place and constitutes a sizeable portion in the e-tailing industry.

In 2014, As per Google India, there were 35 million online shoppers in 2014 first quarter. Electronics and apparels were the most common items for e-commerce then.

In 2015, the e-commerce business rose up to US$24 billion, with a half portion of online travel. Mobile, DTH recharges were among the good-selling items.

In 16-17, the industry has grown up in terms of luxury products selling like ornaments and bangles. According to Google India research in 2016, e-commerce is supposed to grow to the extent of USD 100 billion out of which 35% of fashion e-tailing.

In 2018, the value of the e-commerce business has gone up to USD 38.5 billion.

As per an estimate of ibef.org, the India will surpass the US by 2034 and will become the second-largest nation for e-commerce.

Values in million years on year

Scope and future of E-commerce in India:

The space for expansion is huge. With the majority of young and brilliant minds, e-commerce in India is all set to fly high. 500 million internet users constitute 40% of the entire population and increasing day by day. The ultimate users for E-commerce business ‘MiddleClass’ is overwhelming the internet marketing space. As per Deutsche Bank report, there are 300 million people belong to the middle class which makes a big difference. These middle-class people are either in jobs or in small businesses. Basically, they are the backbone of e-commerce business in India. Due to lack of time and ease of shopping as well as selling an online Indian e-commerce business is blooming in full swing.

User experience innovations are yet another constituent for soaring e-commerce. In fact, today, when global competition is on with the increasing number of entrants, the internet marketing companies are adding value to their products and services in terms of the user interface, merchandising, return policy and deliveries.

Social Media: Talking about E-commerce and not discussing the value proposition added by social media is not fair. In fact, social media has emerged as the catalyst to e-commerce business. Facebook, WhatsApp, Twitter, and Instagram are the best online sources to advertise and sell products and services. They provide customized services to their clients targeting niche marketing. The importance of social media to Indians is rising abundantly and upgraded version of mobiles is the key means.

E-commerce transport and logistics: E-commerce transport and logistics are taking shape in India. This sector is estimated to fetch USD 2 billion marks by the end of 2019. In a way, this is also true that e-commerce future lies in the quality of logistics services nationwide. 

Hurdles to E-commerce business in India:

However, e-tailing is all set to rock the market place in India there are a few hurdles too that need to be taken care of. Illiteracy in rural and semi-urban areas, lack of transport network, poor internet facilities are the major obstacles.

E-commerce friendly government policies:

In this regard, government policies are also friendly for local and global players as it allows the 100% FDI through automatic route. In Feb 2019, the government of India published the draft National E-commerce

policy which was aimed at allure funds from overseas and to keep the privacy

of data flow. The Indian government is focusing on turning the online economy to USD 1 trillion by 2025. The government of India is also very much curious about expanding transport facilities in each and every corner. For this mega bridge and road projects have been launched and completed on time. The government is also keen to develop logistic parks throughout the country. 

Conclusion:

The E-commerce industry is achieving new horizons in Indian. With the grown-up internet facilities and young population, it is bound to achieve USD 100 billion mark by the end of 2021. The online consumerism in India is a new mantra today. The government is also trying to promote it by the way of digitalization. One big initiative has undergone in this regard is to minimize currency exchange and to promote digital payments. The government itself is emphasizing on machine mechanism and unveils several schemes online. The hurdles seem to have defeated in front of the true spirit of the E-commerce environment. Social media and apps are bearing a great responsibility for online marketing. In a nutshell, we can say that India by the third decade of this century will emerge as the second largest e-commerce market in this world.