10 June 2023, Mumbai
It is hardly surprising that e-commerce companies are currently more successful in India than ever. E-commerce firms are more popular with consumers than ever thanks to the widespread adoption of internet connectivity, the Covid-19 effect, and simple delivery methods.
India's Economic Growth and Youthful Population Drive Expenditure and Shopping Evolution
India, the world's sixth-largest economy, is set to witness a remarkable surge in consumer expenditure, projected to reach $3.6 trillion by next year, fueled by the country's youngest population. As per the India Brand Equity Foundation, this surge is attributed to the transformative impact of emerging technologies on shopping experiences.
Ever evolving sector
Studies predict that by 2030, the Indian e-commerce business would be worth more than $350 billion. Key companies in the e-commerce business must improve the shopping experience and alter consumer behavior in order to support this hyper-growth and demand for online shopping.
For the same reason, a large number of e-commerce facilitators and players have been making numerous efforts to democratize the entire online purchasing experience. So what do these steps entail? Let's examine those in more detail.
Enhancing Checkout Experience
Improving the checkout experience is one of the key actions that e-commerce players have made to democratize the purchasing experience. Even though the e-commerce sector is booming, we cannot deny that India is extremely close to experiencing a cart abandonment problem.
According to studies, it may go as high as 70% in some circumstances. A large portion of cart abandonments is attributed to issues with the checkout process, such as having to fill out information repeatedly, lengthy load times, needing to open numerous tabs on a phone to complete purchases, and so on.
Shorter Lead Times and Adapting to Changing Trends
Shorter lead times are gaining significance as customers increasingly prioritize same-day product delivery. Companies like Kalpataru Retail are proactively studying and adapting to these shifting trends, advising marketers to align their strategies with the latest available technologies to remain competitive in the market.
Focussing on proper delivery services
Ensure prompt and quicker deliveries Due to the blatant delays in delivery, clients frequently choose to cancel their orders. In Tier III and Tier IV cities, where delivery frequently takes longer than usual, this is fairly prevalent.
However, e-commerce companies have recognized how a customer's whole purchasing experience is impacted by delayed deliveries and are working to address this issue as well. The 10-minute delivery approach is merely one aspect of this; there is much more to it.
The Transformation of Indian Retail
To increase consumer happiness and lessen the issue of return to the origin, brands are finding solutions for prompt deliveries and precise position tracking. In order to accomplish this, technical and logistical capabilities are being integrated, which helps to democratize the purchasing process.
Shaping the Future of Retail: Personalization, Convenience, Social Commerce, and AI Technology
In line with industry experts like Prasad Shejale, Founder and CEO of Logicserve Digital, four dominant trends are poised to revolutionize the retail landscape in 2020. These include personalization, ultra-convenience, social commerce through platforms like inspirational blogs and celebrity engagement posts, as well as the integration of AI and VR through smart mirrors.
Unified Commerce, API Integration, and Visual Search: The Changing Face of Traditional Retail
The traditional retail industry is on the cusp of a monumental transformation, with stores evolving to function more like websites, while e-commerce platforms strive to provide experiences akin to physical stores.
Additional trends set to reshape the industry include unified API-driven commerce architecture, the direct-to-consumer approach, and the integration of visual search technology.
Offering Comprehensive Support
E-commerce brands can improve customer experience by providing support at every stage of the purchasing process.
These processes, which include chat support, phone calls, and WhatsApp updates at every stage of the purchasing process, are reducing customer anxiety and improving the shopping experience.
Not only this but it has also been ensured that this aid is offered in all languages to meet the various India's vernacular demands.
Growing Worries about Privacy and Security in the Digital Era
As online shopping becomes more and more popular, worries about privacy and security in the digital era have also been growing. Customers worry about who will have access to their personal information and how far it will be transmitted when they shop online in this era of recurrent data breaches.
Another step towards improving their experience is to comprehend these problems and provide a safe, secure, and open atmosphere for them to buy in. More than ever, many e-commerce companies are making this commitment.
Disruptive Strategies for Market Relevance
Makani Creative emphasizes the importance of retailers adopting disruptive strategies to maintain relevance in the age of e-commerce. The listing of Big Bazaar on Amazon India, for instance, opens new avenues for retail marketers, enhancing shoppers' agility and efficiency while providing retail stores with broader horizons across the country.
Unleashing the Power of E-commerce and Digital Innovation; Innovating retail experiences and embracing change are essential for retailers to thrive in a highly competitive market.
The Fashion Sector Drives India's E-commerce Boom, Led by Young Millennials
The fashion sector has experienced a significant surge in online shopping during the pandemic-induced lockdown.
The accessibility offered by e-commerce platforms has extended beyond metropolitan and Tier I cities, captivating consumer groups with purchasing power in Tier II and III cities. Reputable brands, such as Puma, H&M, Woodlands, Marks & Spencer, and Arvind Fashions, have witnessed substantial online sales percentages, indicating the dominant role of young millennials and Gen Z in shaping the industry's success.
The Rise of Online Fashion Marketplaces and Brand Strategies
Online fashion marketplaces, led by pioneers like Myntra, have gained immense popularity in India, aided by the widespread penetration of smartphones and the introduction of indigenous 5G networks. Platforms like Ajio and Cliq, backed by Reliance and Tata, respectively, have emerged as competitors, leveraging their vast brand portfolios and customizable shopping experiences.
However, traditional department store chains are yet to experience comparable success, with online sales contributing only 6 to 10 percent of their revenue.
Projected Growth and India's Ascent as a Global E-commerce Powerhouse
A recent Bain & Co. report forecasts an annual growth rate of 25 to 30 percent in online shopping for India over the next five years.
If these projections materialize, India is poised to surpass the United States as the world's second-largest online shopping market by 2024.
With a current online shopper base of 180 to 190 million, expected to reach 400 to 450 million by 2027, valued at $150 billion, online shopping in India continues to witness unprecedented growth.
