Indian e-commerce market is one of the world’s fastest growing markets and is all set to overtake several global peers. Despite a slowdown in the last few years, India is still doing better than other Asian countries on the commercial front.
Companies like Amazon, Flipkart are dominating the online market. Customers are sold good quality products at discounted rates. Further, various sales and Amazon offers are leaving the consumers happy and coming for more.
In the past few years, Indian e-commerce market witnessed a slowdown, due to some regulatory actions such as demonetization, new guidelines for foreign direct investment (FDI) and introduction of GS. According to stats, in the year 2014 and 2015, the growth rate was 100%, which fell to 37% in 2016 (due to demonetization) and in the year 2017 it further fell to 25%.
But the speed at which it is recovering indicates that India is going big in e-commerce sector. Several calculated reports also suggest that Indian e-commerce market is set to leave China & Australia behind by the year 2022.
The boost in Indian e-commerce market can be credited to the launch of affordable 4G services and reduction in data prices, which adds to the buyer base in India. Further, increase in adoption of mobile payments and use of credit cards/debit cards & net-banking, boost sales via mobile devices.
E-commerce offers benefits to both retailers and consumers, which is why more and more market is shifting towards e-marketing. It offers convenience and easiness to customers, as they can buy anything from a great variety of products anytime during the day or during the night. It saves a lot of time and money as well, by searching products easily, comparing the prices and purchasing them online.
Retailers also get benefitted by e-commerce as they can keep an eye on consumer’s buying habits very easily and satisfy their needs accordingly and constantly, which help in building long-lasting relationships with consumers. So Indian e-commerce has lots to offer and hence is going big.
Amazon closing on Flipkart
Amazon and Flipkart are two of the leading e-commerce markets in India. Out of all other online websites, they remain to be at top. Initially, competition was very less as the Indian e-commerce market was dominated by Amazon. But with the introduction of Flipkart, the e-commerce war was aggravated, making Flipkart, homegrown rival for Amazon.
But in the year 2016, Amazon surpassed Flipkart for the first time and strengthened its position yet again as preferred online retail destination buy consumers. Amazon is all set to become the single-largest online retailer in India in terms of sales.
The number of customers preferring Flipkart is constant from the past four years, whereas, Amazon has shown a tremendous growth in terms of customers by growing from 20% to 80% customers in 2017. The other e-commerce markets in India, like Jabong, Snapdeal, Myntra, etc. are also contributing to the growth of Indian e-commerce market. More and more retailers are aiming for an online marketplace to target a large number of audiences for better business.
According to a report, Flipkart may find it even more difficult to compete with Amazon, as Flipkart has a significant edge only in the category of Fashion. In reciprocate, Amazon is now focusing on its grocery and fashion collection, starting 2018. This may make it difficult for Flipkart to retain its edge in Fashion this year.
However, in conclusion, one can see, with the competition between Amazon and Flipkart growing over the years and the introduction of new online marketplaces every year, Indian e-commerce market is also growing faster and by the year of 2026, the estimated value of Indian e-commerce market is likely to be worth $200 billion.
The number of internet users is increasing every passing year, with current 432 million internet users. A couple of years ago, the number of customers paying via UPI and digital wallets were just about a percent or two and cash on delivery was over 60% of e-commerce sales. But presently, cash on delivery has come down to 55% and there is a significant raise in the number of customers paying via net-banking.
It can be predicted that in the coming 10-15 years Indian e-commerce market will overtake all major e-commerce markets in the world.