The likes of Bansals , founder of Flipkart has already found their place in Forbe’s list of billionaires , So is the digital commerce going to be next big thing in India?, Has our consumer’s buying pattern a reason to feel confident that , digital commerce is going to flourish in the coming years? , For all this questions the answer is a confident “Yes”.
Digital commerce or mobile commerce or it is commonly called e-commerce business models found favor among the population who uses internet or Mobile, I believe their sense of exuberance which is their in the air, If you look the total size of India’s present e commerce industry, it is full of hopes, dreams & aspiration which is built around the prospect of capturing the market potential of retailing the products through online. Every time when you see advertisement in the television roughly more 30 to 40 % represents the e-commerce company’s ads, be it in finance, apparels, furniture, groceries, travel, and hotels etc.
Today every one who has a dream ,idea to start a venture generally prefers to build a value proposition by leveraging the online platforms to promote their products & services . The reasons to prefer the online model of business is very simple.
- The requirements of setting up go downs, over head costs are less compared to traditional business models.
- The cost of setting up an online business is very less compared to brick and mortar business models.
- The idea of providing a digital platform for all retailers to come together under one roof , so they gets the edge and reach to market their products & services by with out any geographic constraints.
- E-commerce or Digital platforms could rein the opportunity to drive in volume by offering deals, or mega sales in a short notice as when required with minimum time frame& cost.
Digital Buyers in India from 2011 to 2016
The number of digital buyers in India shows a positive trend as per the data in 2011 it was just 15 million and over period of four years it has reached 35 million users or it has grown 2.5 times , in 2016 the figure is expected to reach above 40 million , but assume with a population of 1.2 billion , with growing penetration of mobile & internet , the potential turns out to be huge . I feel surprised to hear that even present generation cricketers has shown interest to get their hands soaked via investment in e-commerce ventures.
It is no surprise that founders of established e-retailers has grown fast , became billionaires with in a very short span of time , If they were in to traditional form of business I think they would have taken more time to be in billionaires club , of course established one’s in no time is able to attract the eyes of venture capitalists & investors than any other business in the near future. As per the data, sales in 2015 is going to be 7.69 billion and it would touch 17.52 billion in 2018. So it means every person out of the 1.2 billion would be prefer using the digital route or more prone to use this growing medium.
The penetration of digital buyer in Asia Pacific region shows a very encouraging trend ie, is by 2018 buying through digital platforms would be roughly 50.9% of the total population.
Retail E-commerce sales in India from 2012 to 2018
As per the data top 10 e-commerce companies holds their share of pie in this sector . E-retailer, Jabong e- retailer tops the chart with 26.26 % , followed by multinational company Amazon holds the second with 24.16% , third position is held by Flipkart with 22.39% and snap deal holds the fourth position with 20.99% and rest of them holds the remaining % in terms of the total sales by e retailers in India.
So e-commerce sector India is still in its early stage of growth, in terms of scale ability and reach it has long way to go, but growth in this sector would catch much faster than any other sectors .More new millionaires and billionaires are going to be from e-commerce sector. India as a market is considered widely potential, I believe our market is the best fertile ground for new e-commerce startups to sprout and find their feet on the ground in the coming future.