Online shopping has taken over the retail market by storm. With a massive population of 500 million internet users in 2017, India has one of the fastest growing internet population on a global level. This is the primary reason why we have seen campaigns like India ki dukaan and Paytm karo become a hit.
Today everything is available online. From grocery, apparels, gadgets to home cleaning services our Indian e-commerce fraternity has left no service addressed to. This is the result of steady growth in the Indian e-commerce from 2014. Currently, the market size is $53 billion which is expected to cross over $100 billion by the year 2020 and $200 billion by 2026.
In this blog, let’s look at Factors That Have Contributed to Growth in E-commerce
Internet localisation: E-commerce sites allow you to search for your product in Hindi, Tamil and various other languages. Now you need not wonder what do you need to type while searching a mop or a camisole. Google spokesperson confirmed that after the localisation of the internet, web content search in Hindi grew at a rate of 155%in 2014 and Hindi content searched through smartphones grew up to 300% in the same year. Looking at the growth in the mobile subscriber base from people comfortable in languages other than English, online platforms held personalisation as the key to success and launched platforms in local languages or enabled local language searches.
The Growth of Mobile E-commerce: The number of mobile internet users in the country was 173 million in December 2014 and has grown twofold since then. Smartphone adoption due to easy accessibility and availability of the internet has contributed to extensive growth. This is something that the e-commerce retailers have been banking on. There are mobile-specific marketing campaigns created to entice these users to attract, close, delight and convert.
Digital India: Government of India’s Digital India initiative has been a significant factor in triggering internet penetration across the country, which has triggered a host of services being digitally delivered. The invariable result of this trigger in internet penetration has shifted the consumer to online shopping and online payments.
Payment Options: Digital wallets like Paytm and UPI have increased the payment options. Earlier, e-commerce players recorded immense growth because of the success of the Cash on Delivery (COD) model, which was a massive hit in India, due in no small amount of cash usage. Demonetization drive has prompted the Indian population to opt for electronic payments. EMI is another factor that fueled the sales of those products that consumers could not afford at one go.
Employed Population in India: About 60-65% of the Indian population is under 35 years of age and out this the employed, educated and the tech-savvy are driving e-commerce growth through their purchasing power.
Attractive deals and marketing campaign: E-commerce retailers have launched engaging marketing campaigns on Radio and TV as well. They are wooing consumers with attractive deals, discounts and challenging to say no’ offers.
Shop Conveniently: Technology has enabled us to sit on the couch and order food, groceries, books, gadgets, clothes, and much more. The convenience of shopping on the go or use voice to search the product you need has triggered the and contributed to the growth of e-commerce.
Logistics: Courier and packaging companies are assisting the e-commerce boom. From attractive packaging to use of eco-friendly, reusable products to support the plastic ban along with on-time delivery there is everything that the logistics and courier partners are doing to help the e-commerce industry.
Fierce Competition: Apart from the boom in mobile and internet usage, Flipkart, Amazon and Paytm Mall have been competing for neck-to-neck to claim the cream of the Indian market. All three companies are making significant investments, which include improved logistics and payment, as well as attractive offers, which has triggered their growth in the market.