The Indian E-commerce segment seems poised to become a powerful segment. If the multiple players continue to grow even at the current pace, the industry could easily cross a gross valuation of US$ 34 Billion within the next 3 years.
Apparently encouraged by the reassuring statistics from ‘Great Online Shopping Festival’ companies have begun to build on their efforts. Websites are now aiming to offer a better experience of online shopping. Coincidentally, multiple e-commerce portals reported exhausting their stock/quota within half a day!
The industry is currently ascending at a very healthy compound annual growth rate of 57%. But that’s the least of the figures that matter. The real reasons are actually the skewed ratio of online population versus the people who shop while online. According to HomeShop18’s CEO Sundeep Malhotra, “It is estimated, that around 27 million (in India) are active mobile Internet users. Currently, 4 per cent are buying products, through mobiles and in next four years time, it can go up to 20 per cent,” This immediately translates in a 5 fold growth.
Over the past year, we have witnessed multiple endeavors by e-commerce portals to reach out to the mobile population. From launching iOS & Android Apps to perfecting location-awareness, online companies are putting muscle to entice shoppers to visualize, search, locate nearby stores, execute & pay for purchases without keeping the phone aside.
One of the points raised by Malhotra did ring a bell of caution though. He said, “With more than hundreds of websites currently operating in the sphere and many more to join the space, it is obvious that e-commerce is going to be a game changer in India”. Apparently, many websites that come-up, are rarely able to sustain, thanks to extensive peer-pressure keeping prices down & operating costs high.
Hence, it’s not the number of websites, but the way they run the business. From perfecting delivery processes to tweaking website for user-friendliness, aspects like these will help build & sustain customers. Many of the portals who haven’t realize this, will soon fade into oblivion while others surge ahead. What do you think?
Image Courtesy | boston