ONDC: Indian E-commerce Giant Leap & Apparel industry
25 April 2023, Mumbai
In recent years after UPI global scale initiative the Indian government has undertaken the ONDC initiative aiming to replicate the eureka moment in the Indian E-commerce universe creating a unified e-commerce platform democratizing for all Indian retailers, reducing the country's reliance on global foreign e-commerce biggies both boosting the economy and facilitate developing self-help model.
Big tech investors such as Japan’s SoftBank and Sequoia Capital India have advised their portfolio firms to join the government’s Open Network for Digital Commerce (ONDC) as was quoted in a media report when this much-talked-about platform was launched earlier.
Prelude
ONDC (Open Network for Digital Commerce) intends to enable Kirana and the value chain to run digital storefronts transparently with broader logistics and inventory options, analysts posit as the pilot continues in the early days. The open network for digital commerce (ONDC ).
The government-backed initiative aimed at curbing digital monopolies is working on a framework for an in-house settlement system. ONDC is being pitched as a solution to make the E-Commerce platform agnostic and therefore break the dominance of large e-tailers.
India's One Nation, One Digital Platform
The platform has rapidly expanded its footprint across various categories within a very short span which includes the apparel sector and is aspiring to revolutionize the Indian e-commerce industry seen never before.
ONDC has demonstrated leveraging technology to enhance the shopping experience, using AI and machine learning algorithms to personalize product recommendations based on customer preferences. Its focus on sustainability and ethical practices has resonated well with consumers, with initiatives aimed at reducing waste, promoting eco-friendly products, and supporting local artisans and weavers.
The Indian e-commerce giant Flipkart has recently acquired Cleartrip, a travel booking platform, to expand beyond traditional retail and tap into the growing travel industry.
This move is expected to strengthen Flipkart's position in the Indian e-commerce market, currently dominated by Amazon, by offering customers travel bookings alongside its existing range of products.
Revolutionizing the Indian Apparel Industry
The role Indian apparel market is pivotal as it contributes to the country's economy is remarkable and its size and scope can be gauged as it is projected to reach $82 billion by the year 2025, going up all the way from $66 billion in the year 2020, as per a report by the India Brand Equity Foundation. All this robust growth is backed up predominantly driven by factors like rising consumer incomes, changing lifestyles, and increased internet and enormous smartphone penetration in India.
A case in point is MNC E-commerce companies like Flipkart are tapping into this vast opportunity by investing and putting money where their mouth is in categories like fashion/apparel category, unleashing strategies like harnessing private labels and partnering with prominent fashion/apparel brands.
ONDC's Ethical and Sustainable Practices
The best part of the story is the platform continues to leverage technology to improve the online shopping experience, using AI to provide bespoke/personalized recommendations.
ALBEIT! The apparel industry grapples with odds/challenges some of them are a highly fragmented market, a fiercely competitive trade landscape, and the perennial malaise called the rampant practices of counterfeit/fake products.
Using AI in the Apparel Industry; With The growing application and acceptance of emerging technologies to overcome shortcomings of different processes, increasingly players are adopting relevant technology, such as blockchain, to enhance transparency and traceability in the supply chain.
No prize for guessing the Indian e-commerce market is leapfrogging by the day on the back of favorable government policies and fundamental demand tailwinds.
Cashing in on global giants as the largest e-commerce player in the country, Flipkart is in a unique place to tap into vast opportunities of these trends and widen & deepen its mega-presence both in the apparel industry and much beyond.
ONDC's Seamless Shopping Experience
The article attempts to outline the contribution & role already played by ONDC in metamorphosing/transforming the Indian apparel industry visibly by making it more accessible, affordable, and much-convenient improving the experiential shopping/buying consumer journey.
The platform is very versatile & diverse covering a whole gamut of the collection spanning ethnic wear, western wear, and fusion wear, catering to a vignette of customers.
We have to mention here that, its success in the apparel industry is all due to its sharp concentration on providing a seamless shopping experience, with underlined features viz. easy navigation, multiple payment options, and hassle-free returns amongst others.
ONDC is sustainably been investing in building its logistics infrastructure, facilitating speedy and more credible deliveries/delivery mechanisms Pan-India. Industry to Compete with Amazons of the world; Happy to report that, ONDC's foray into the apparel industry has been nothing short of a life-changer, fuelling growth, creativity, and innovation-led approaches, and its focus on delivering smooth/seamless, personalized, and sustainable customer shopping journey experience is very central in the apparel industry interface.
Digital Platform Initiative to Boost Economy
In conclusion, the Indian e-commerce industry is exploding with growth ever since the pandemic struck, with players like Flipkart and ONDC getting started with an innovation-led basic approach and in the higher growth trajectory widening/deepening their presence/digital footprints across a range of categories which of course includes apparel & is poised to leapfrog in the years ahead presenting the opportunities for businesses and consumers alike.
