Trends and Opportunities in Indian E-Commerce
- January 23, 2020
- Posted by: iNurture
- Category: Blogs
What is E-commerce?
Do you find online shopping more feasible than going to a retail shop? If yes, you are more than just acquainted with E-commerce.
“E-commerce or ‘electronic commerce’ refers to commercial transactions conducted online. This means that whenever you buy or sell something using the Internet, you are involved in e-commerce.”
The Indian e-commerce industry is burgeoning at a skyrocketing pace—revenue from the sector is forecasted to swing to US$ 120 billion towards the end of 2020, exhibiting an annual growth rate of 51%—the highest in the world. And yet, it started only in the year 1994, when Phil Brandenberger used his credit card to buy Sting’s “Ten Summoners’ Tales”, which was the first known e-commerce purchase.
WHY IS E-COMMERCE SO SUCCESSFUL?
E-commerce has grabbed instant attention because of the following reasons:
- More choices than retail shops
- Hassle-free product delivery to the users
- 24×7 hours of customer support
- Wider customer reach
- Wider expansion of markets with minimum investments.
LATEST TRENDS IN E-COMMERCE
–INCREASING USE OF SMARTPHONES
M-commerce in India is estimated to reach 38 billion U.S. dollars by 2020. However, seeing the enormous penetration rate of smartphones in the country, this number is not shocking at all. By 2022, smartphone usage is expected to hit 442 million. Thus, if one person makes at least one purchase using his/her smartphone, it will account for 442 million purchases.
–SOCIAL MEDIA PENETRATION
Increased use of smartphones has massively impacted social media penetration. As per Statista, the number of social media users in India was 351.4 million in 2019. Social media, as we all know, is one of the best platforms for business promotion, and e-commerce has benefitted the most from it. You must have seen Myntra ads running on the screen alongside Facebook or Instagram posts. How many of you resist the temptation of viewing the latest collections? Very few.
–ADOPTION OF AI AND VR
If you are a frequent buyer from Lenskart, you must be knowing about the virtual fitting try-out option available in the Lenskart website/App, which recommends frames based on facial shape and features. This facial analysis is from Ditto, and Lenskart has invested about 1 million USD in the technology. Like Lenskart, several online stores have leveraged technology such as Ai and VR to increase their popularity and sales. A recent media has projected that about 85% of customer communications will be managed through AI in 2020.
–EVOLUTION OF NEW PAYMENT SOLUTIONS
Cash on delivery (COD), although has been the most popular e-commerce transaction option, the scenario is gradually changing. Several digital payment options like Internet banking, Google Pay, Paytm, PhonePay, etc. are now taking over the COD mode. Electronic payment has revolutionized the e-commerce market by reducing transaction and labor costs, making way for faster and easier transactions.
–INFORMATION SECURITY IN E-COMMERCE
Collecting and collating reserves of consumer data, including card, transaction, and personal details, risk security breaches. To protect customer data and privacy, e-commerce firms a layer of robust security measures. They are indeed spending a lot on advanced Information Security technologies. For instance, the e-commerce portal, Jabong, allocates 15–20% of its revenues to cybersecurity.
–Brand Management and Public Relations
A blend of impactful communication strategies, brand marketing, and correct PR approaches can work wonders in e-commerce businesses. The sector is always in the need of creative individuals, with an understanding of the e-commerce market and consumer requirements. According to OnBoard, “Building an audience is more valuable than direct sales for over 70% of brand managers”.
–CLOUD COMPUTING IN E-COMMERCE
Cloud computing brings scalability to e-commerce, enhancing the speed and reducing the cost. It keeps data secure and accessible. Retail e-commerce businesses with functions spread all over the world have reaped the maximum benefits of cloud computing by creating virtual databases and engaging clients from various verticals.
–Opportunities in E-commerce
Followings are some of the job options available for E-commerce graduates:
- Online/Display Advertising Executive
- Social Media Executive
- SEO Executive
- PPC Executive
- Affiliates Executive
- Executive – E-Commerce
- Content Writer – E-Commerce
The Indian e-commerce industry is supposed to outrun the US e-commerce industry to be the second-largest market in the world by 2034. Besides increasing revenue and easing our lives, e-commerce is expected to boost the employment scenario of the country by creating nearly 1.45 million jobs by 2021.
E-commerce is one big thing in the industry now. Everybody wants to be involved in buying or selling things online. To have an alluring career in the sector, you must be ahead of the herd because the competition in this sector is exceptionally high.
You will find this MBA Digital Marketing and E-Commerce program from A P Goyal University, Shimla, helpful in advancing your career in the e-commerce sector. It is a 2-year, full-time program that aims to develop strong knowledge in management concepts with advanced training in the e-commerce domain.