Name the ONE factor that has changed the everyday life and habits of the Indians in last decade?
Let’s have a hint- the change is so profound that it has touched almost every aspect of our economy and put us next to the global leaders on the world map.
Gotcha! Yup, you are right, it’s eCommerce!
India is the world’s fastest growing e-commerce market and with the explosive growth of internet and smartphones, our shopping habits have been revolutionized.
Online shopping tapped on the basic needs of a modern Indian’s lifestyle. It offered products and services that were time saving, affordable and spoilt us for choice. Right from grocery and vegetables to medical opinion, e-commerce brought everything at our doorsteps in few clicks.
Life became easier and fun!
Indians got a new national hobby- Shopping Online!
What caused rapid evolution of ecommerce in India?
With the stable growth of Indian economy in last decade, living standard of Indians went up considerably. Along with wider internet access and adoption of latest technology, double income families, higher disposable income, fast paced lives, exposure to global markets, easy and safer online payment options and above all COD, contributed to the rapid growth of online commerce in India.
With 34% CAGR Indian e-commerce is expected to multiply 6 folds in the next five years and this growth is changing things for better in the Indian economy.
Impact of e commerce on Indian economy
E-commerce is the biggest thing that happened to India since the mobile revolution. This change has an all pervading impact on the economy and has the potential to reshape the Indian economy by the next decade.
Let’s see how growth of ecommerce would impact various spheres of Indian economy:
Related Read: 8 Trends for Indian E-commerce in 2016 and beyond
Faster Financial development
The e-commerce boom has given a boost to manufacturing, transport, sales and other related activities. This is fostering an overall environment for financial growth of various sectors.
Related Read: An Introduction of Indian E-commerce Logistics providers
Markets in unreachable pockets of India
Online retail is no longer limited to the big towns and cities. The unreachable pockets and 2nd and 3rd tier towns are now being targeted as the largest untapped potential audience by e-commerce companies. They are overcoming infrastructure barriers by creating warehouses in the most remote locations and enabling easier access of goods and services to the remotest corners.
Related Read: How 2 young entrepreneurs from Aligarh are turning every single day into a festival
Currently e-commerce is providing 1 million jobs to the Indian work force. Indian ecommerce industry statistics forecast a massive growth in employment opportunities in this sector which would create 12 million new jobs in coming decade.
Startup environment has seen a positive growth with the rise of e-commerce. SMEs operating from home or garage are able to sell on popular marketplaces and cater to global audience. This is contributed to increased exports even from the unorganized sectors.
Changing the face of retail
Retail market has been revolutionized by e-commerce. Online stores are offering better choices, deep discounts and convenience of shopping. The combined sales of three top e-commerce players in India is already more than the sales of ten biggest offline retailers. Brick and mortar shops account for only 10% of total retail sales.
Related Read: Trends for Indian E-commerce in 2016
Growth of B2B ecommerce companies
Effect of e commerce on Indian economy is not limited to the B2C model. Although the current profits of B2B are not as great as B2C e-commerce, but slowly and certainly it is catching up. B2B market potential stood at USD 300 Billion in 2014 and by 2020 it is expected to reach USD 700 Billion.
Related Read: Know here in detail Ratan Tata’s Slew of E-commerce Investments
Environment for enterprise and Innovation
Engineering, medicine, MBA and other similar jobs were the only professional choice of an average Indian a decade ago. This is fast changing and entrepreneurship is becoming the first career choice of young Indians.
Related Read: Why Entrepreneurship is fast becoming the first career choice for the youngsters
Evolution of ecommerce in India has made technology available for all. Thanks to the future ready, affordable e-commerce platforms even the very young entrepreneurs are able to give wings to their dreams and roll out an online store in no time.
Attracting global players
India has the biggest millennial population of internet savvy youngsters. With greater purchasing power and changed lifestyle and shopping habits, this generation is playing the role of a positive catalyst in the growth of ecommerce.
Given the population size of India it is no wonder that all the ecommerce bigwigs are trying their best to woo Indian customers and plan their strategies targeting the specific needs of Indian audience.
Related Read: 5 things to research thoroughly while preparing your ecommerce business plan
Evolution of ecommerce in India is reshaping the economy in more ways than one. With the government also giving a push to the startup and ecommerce environment Indian economy is poised to witness a momentous change driven by online selling.
StoreHippo is contributing to this change by offering mobile ready e-commerce platform with focus on mobile technology which will be the game changer in future.
Have queries about our plans? Leave a comment below and we would get in touch with you.