This caselet tries to summarize the evolution of eCommerce in India in the last two decades and lists the phases as observed.
Summary from Wikipedia article here:
- Internet user base of 600+ Million in India
- Rapid growth in eCommerce but eCommerce penetration as a percentage of internet users is low compared to US, China, France and so on
- Cash on delivery is the preferred mode for more than 70% of users
- Demand for international products is high
- Flipkart, Amazon, Snapdeal, JioOnline, Multiple grocery vendors and specialized sellers in electronics, gifts, travel and more are the leading eCommerce entities
- Open Network for Digital Commerce is under pilot phase in India
- Online travel booking, apparel, retail, grocery, electronics, mobile, DTH, warehousing, logistics, food delivery, ride hailing, furniture, luxury, home maintenance & services, gifts, fashion are a large component of eCommerce in India
- COVID-19 created lot of upheaval in the models and sales in eCommerce
- Evolution into 10-30 minutes delivery, next day delivery and innovative models have seen an uptick in last 3-5 years
- Large number of investors have put in money into various entities over the last 10-15 years
- Niche players in automobile, apparel, grocery and similar areas have been coming up
- String of acquisitions / mergers have happened over the last 10 years especially from large players
- B2B eCommerce is growing quickly. Players like Bizongo, Udaan, Medikabazaar, Moglix, Ofbusiness and Inframarket are present.
- Major regulation rules include foreign players not allowed to hold inventory
Phases as observed in the last two decades:
- Standalone focussed players – early entrants – with less regulation
- High growth in number of eCommerce players
- Entry of investors
- Regulations evolving over time
- Shift of smaller sellers (many of them) to marketplaces
- Friction between online & offline sellers
- Hyper competitive growth with losses to capture market
- Enablement of financial ecosystem like UPI, RuPAY, QR, JanDhan, Cash on delivery models and so on
- Evolution of 4G and broadband
- Specialized and niche sellers
- IPOs for many specialized players
- Newer models of sales around delivery, bundling of additional facilities and so on
- Evolution of local logistics players
- Consolidation, closures & M&A across the industry
- Brand building, focus shift to a mature mindset and ecosystem
- Newer initiatives to standardize eCommerce like ONDC and preparation for 5G
References:
- https://en.wikipedia.org/wiki/E-commerce_in_India
- https://en.wikipedia.org/wiki/Open_Network_for_Digital_Commerce
- https://economictimes.indiatimes.com/tech/tech-bytes/rapid-digitalisation-drives-b2b-ecommerce-during-pandemic/articleshow/88500483.cms
- Google News
Email me: Neil@HarwaniSystems.in
