A country having 450 million internet users as of July 2017, second largest in the world. Yes, we are talking about our own country INDIA. Despite the numbers, the E-commerce couldn’t achieve much in the beginning. But as they say “Better late than never”, the growth is almost incalculable adding millions of new entrants every month.
The E-commerce sector in India has grown by 34% (CAGR) since 2009 to touch 16.4 billion USD in 2014. The sector is expected to be in the range of $850 billion by 2020. The retail sector (which is one of the largest item in E-commerce) is also showing a promising trend of 11% CAGR and is expected to reach $1 trillion by 2020, but it was not always the same.
What is E-commerce ?
To put in a noob’s language, E-commerce is a web or a mobile application that is used to transact products, which are delivered to your door step and offer flexible payments and return options.
Some Sub Section of E-commerce
- Entertainment: Movies on demand, video cataloguing, interactive ads, multiplayer games, on-line discussions(Hotstar, Voot, Quora, Mini Militia)
- Financial services and information: Home banking, financial services, financial news(Mobile Banking Apps, IDBI Abhay, SBI Mobile Banking)
- Essential services: Home shopping, e-catalogues, online medicare, remote diagnostics(Flipkart, Snapdeal, Amazon, Contalog)
- Educational and training: Interactive education, video conferencing.(Byju, Topper, Coursera, edX, Alison).
Whats Trending ?
Kya Aapne Kabhi Online Hotel Search Kiya Hai? (Have you ever searched for a hotel online?)
Yes, we’re talking about online travel, India’s 70% of the E-commerce market is Travel related. During the early 2000s, when the Indian audience was less tech savvy, a wave of E-commerce was launched by IRCTC by launching its first transactional website. From air to bus, startups like Makemytrip, Cleartrip, GOibibo, OYO and now the most trending one Trivago, have completely changed the scenario of travel and tourism. E-commerce not only brought ease it also gave the audience variety. Overall E-commerce market had reached US$15 billion by the year 2017 with online travel, enabling the audience to have a look on innumerable choices.
Another big segment in E-commerce is mobile/DTH recharge with nearly 1 million transactions daily by operator websites. Mobile traffic has soared in recent years and now constitute 30-50% of overall traffic on major E-commerce sites. This completely washed the era of coupon scratching or calling the “FLEXI WAALE BHAIYA”.
Companies like PayTM, FreeCharge, Mobikwik, Jio Money gave bonus to their customers by facilitating them with e-wallets and also enabled them with various features such as Cashback, Reward points etc. which allowed the customer to shop or recharge with these valuable points on their website. This became a point of attraction for the audience, an audience that’s ready to take ANYTHING which includes the tags FREE, FLAT **% OFF, CASHBACK & REWARD. This earned them TRAFFIC on their websites and increased the application usage by providing the so-called EXCLUSIVE EXCITING OFFERS … ONLY ON APP. I don’t think there’s a need to talk about B2C retail companies such as FLIPKART, AMAZON, SNAPDEAL etc.
“You can’t just open a website and expect people to flood in. If you really want to succeed you have to create traffic.”
Joel Anderson, Walmart CEO
Considering this let’s take the example of India’s biggest E-commerce company i.e. FLIPKART. Before its BIG BILLION DAY sale, selling , pen drive for Rs.10 and slippers for Rs.6 , public barely knew who flipkart was. This sale built the strongest grounds for flipkart, though the website faced many crashes but was compensated with the profit earned. What we missed here was a very major detail i.e the traffic that crashed website and app. This sale made flipkart earn thousands, must say lakhs of customers. The majority of the customer didn’t even care about the original price all they saw was 90% discount, 85% flat discount being offered on brands. Hence, I guess this is what e-commerce is all about – INVEIGLING. Increase the marked price of the product by 50-60%, give some 10-20% discount and sell it on a one day sale.
As the time’s fleeting by, Older ones waste time in pointless mergers, selling and buying smaller startups for petty cash, newer competitors are entering into the market and are receiving an appreciable feedback. From the current growth in E-commerce it can be clearly seen that this is the best time to get into the business.