The world is evolving fast, so is India. With more than 75% of the population being millennials and gen z in the years to come in India, the pattern of doing business has evolved leaps and bounds. From the age-old barter system to traditional business practices to the newly evolving e-commerce and online shopping platforms in India.
With time as the technology has evolved and so is the Indian mindsets and the ways of doing business. Now everyone is working towards a balance between their offline and online business by amalgamating it with the internet and the evolving technological devices to ensure ease of doing business with increasing returns. With the occurrence of the global pandemic, Covid19 the need and significance of e-commerce have been realized in true sense world over and especially in India.
To better understand these new trends in the evolution of E-Retail, the following points are highlighted:
Reduction of trade barriers
The advancement of technology and globalization is a major contributor towards increasing the online presence of customers all over the country which has eased the process of doing business by removal of irrelevant and unnecessary trade barriers. The global access to information and the introduction of digital marketing has brought a revolution that has changed the game all over.
Now with the help of explainer videos, tutorials, and step by step registration process with detailed instructions, the process of taking the business online has become very easy. In fact, in the last 5 years, the Indian e-retail has grown up to $850 billion and stands as 4th largest in the world which indicates a bright and expansionary future of E-Retail.
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Wider geographical coverage
Smartphones have become a necessity for survival just like air and water and are one of the most significant contributors to the emerging E-Retail business in India. With increasing demand and order placement by every corner of India, e-retail platforms are now catering to 97% of the pin codes in India.
This figure is evident enough of the growing need for online business platforms and enhancement of trade by connecting small and marginalized businesses across boundaries with their customers by breaking the go-to-market barriers. It is also helping in promoting the cultural diversity of India by ensuring the supply of Kerala spices to consumers in Kashmir and supporting local businesses to become future brands.
Easy and cheap access to data
With the availability of cheap and low price data packs since 2014 to customers in India, the accessibility to the internet has become more convenient and has also increased the average time spent by people over the internet.
This engagement with the internet has led to an increase in the frequency of online shopping across E-Retail platforms like Amazon, Flipkart, Myntra, and many more. As per the shopping trends of the customers, it has been analyzed that almost 90% of customers prefer shopping clothing or footwear and hence people engaged in fashion businesses must create their online platform to increase their customer base and sales.
Concern for safety and convenience
The global pandemic situation across the world has increased the concern for safety and hygiene. And this dynamic phase of the environment has given a trajectory boost to the growth and expansion of E-Retail business.
With severe lockdown situation and social distancing norms, 30% of online shoppers have increased their purchases in existing categories while 16% are purchasing products from new categories and another 11% people have started using online platforms for the first time for making a purchase. These trends highlight that people have started realizing the significance of making purchases online is a safer and much more convenient way of carrying out business than the traditional practices and this realization has created E-Retail all the more relevant for the coming future.
Promotion of inclusivity and Vocal for Local
With an increasing emphasis on promoting local businesses and inclusivity in the business arena, E-Retail platforms have taken positive steps to empower both the local sellers and the customers.
By connecting millions of customers with the local sellers like Kirana stores, artisans, traders and homemakers across state and national boundaries, it has enabled a 24×7 demand of products and non-stop running of stores. It has boosted the sales for the sellers by 60% with an increase in daily orders by 90% and has played a major role in improvising the economy of India and the gross incomes earned by the sellers.
For the customers also, it has opened up more options from sellers across the country which has enhanced their freedom to choose from and buy goods from anywhere at the comfort of their homes at convenient timings.
These are some of the massive improvements undertaken in the evolution of E-Retail and is expected to grow by 30% by the financial year 2025 by adding new online shoppers by 300-350 million.