New Delhi, India, 2018-Jul-23 — /EPR Retail News/ — E-commerce retail operations in India supported by unprecedented growth of smart phone and internet penetration has made Indian retail industry the most potent, sustainable and fastest growing industry in 2018 compared to many of the world’s leading economies.
Even in rural regions, where people used to make retail purchases from the nearby mom-and-pop or physical stores for their grocery, electronic, or any other domestic goods, are now flaunting with tablets or smart phones with dependable internet connectivity and make purchases from online stores using debit or credit cards or internet banking or through digital wallets offered by payment companies such as Paytm, Rupay, Freecharge, MobiKwik, Jiomoney, to name a few.
According to market research firm eMarketer, Indian e-commerce sector will show rapid growth of 31 per cent this year to reach $32.7 billion. With the growing internet penetration and rapid usage of smart phones, the report predicted that by 2022, Indian e-commerce businesses will worth a whopping $71.94 billion surpassing the growth of China and other leading economies in the world.
As per the 2017 Goldman Sachs report, the online retailing sector in China will grow from the current 17 per cent to 25 per cent by 2020.
Factors contributing growth
Industry analysts from Millennium India, a leading e-commerce advisory and supplier of advanced POS technology to Indian retailers, say that the E-commerce growth in India has been contributed by the arrival of leading names – Flipkart, Amazon, Paytm Mall, Zomato, Bigbasket, Naaptol, Urban Ladder, etc, which have forayed into newer fields to address the daily needs of customers.
For example, Flipkart, Amazon and Jio are in the process of integrating nearby grocery shops to provide customers the pleasure of shopping daily need items, fruits and veggie from home, says Kiran Bhargava, an industry analyst based in Mumbai.
According to Bhaskar Venkatraman, CEO and Director of JusTransact.com, which is India’s only e-commerce portal for Point of Sale (POS) electronic products, says: “E-commerce in India has seen vertical growth over a decade and is now in the consolidating mode spreading its base to several other fields to satisfy growing customer demands. Customers, who are empowered by mobile technology, want everything online. Today’s shoppers are highly demanding and tech-savvy which forces retailers to open all doors – physical, internet, mobile, land-line, desktop/smart mobile/tablets, O2O, cloud- to reach them and vice-versa. No one wants to lose-out customers because of lack of technology.”
“E-commerce is getting further boost due to cheaper smartphones and increased internet users, and this trend is catching up fast in tier II and III cities as well,” adds Bhaskar, who also heads Millennium India.
Not only, groceries, customers can now order their daily needs and essential items such as furniture, electrical and electronic items, hardware, home utility items, laundry services, food from their smart phones, whose penetration and internet connectivity and also overwhelming online presence by young population and expanding middle class are catapulting the number of digital buyers in India.
The online retail space has been witnessing fierce competition in the recent times for the larger pie with market leader Flipkart (which has been taken over by Walmart recently), Amazon and Paytm Mall (backed by Softbank and Alibaba) infusing huge capital for improved logistic and payment system and also planning to woo customers with attractive discounts on competitive products.
Though as of now, no one has emerged clear winner of the e-commerce space in India, one can surely say that coming months will be more crucial for these entities and customers are in for delightful surprises with deep discount offers, concludes Bhaskar.
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