Trends that will define India’s E-commerce by 2020

Statistics show that e-traffic through mobiles will be 6 billion by 2020 and this will define the future of E-commerce.

Indian Ecommerce in 2020

 

The E-commerce market in India has recently garnered a lot of attention when global giant Walmart picked up a majority stake in India’s largest online retailer Flipkart. This is by far the world’s biggest eCommerce deal by absolute value and has set the future trends for more investments to follow in the coming years with a focus on niche categories like Fintech, Online Grocery and Furniture. This would also suggest that logistics and supply chain would get a major boost with the end customer being the actual gainer. Online shopping is set to get more convenient now and consumers should expect faster deliveries and competitive pricing of products and services.

There has been a huge spike in internet consumption in the last 5 years, aided by the competitive data tariffs across the country, e-commerce is fast gained momentum and has become an essential element of our daily life. With every passing year, newer platforms are sprouting up in the dotcom trading arena, thereby enlarging the size of the pie to a whole new level.  Prompt customer-care service, after sale grievance handling, easy returns and attractive discounts have ensured that more and more customers are taking to online shopping now. Consumers today are not hesitant to order big-ticket items such as AC’s, Fridge, TV and even furniture online.

With the market perfectly poised, here are a few trends that are expected to flourish throughout 2018 and continue into 2020.

Same Day Delivery Will Become a Norm: The time between placing the order to receiving the delivery will reduce further and same day and in some cases delivery within a few hours will become a new norm. Customers hate the waiting time and one thing that tops their wish list when shopping online. Although this is a tough expectation to manage for the retailers, its implementation will guarantee more traffic at the shopping website than ever before. To ensure convenience and safety of shopper’s money, quick turnarounds and easy return, as well as refund policies, needs to be guaranteed.

 Increased Use of Voice & Video Recognition: With artificial intelligence (AI) and technologies such as Alexa, Siri, and Google Home in place, consumers want to upgrade their online shopping experience and use voice instead of text. In some of the developed countries, one can easily give orders and check status at Dominos stalls through their voice. The online shopping channels across the globe are also making efforts to enable the same at the earliest. According to a study, the upcoming year will witness around 33% of consumers giving voice commands while shopping online.

More Visuals, Less Text Clutter: Shoppers prefer simple interface with easy accessibility and navigation while shopping online. If they feel the need to think about it and ask others, they simply prefer to move onto to other options as they lack the time and there is a plethora of options open for them. Customers prefer more of visuals and video options over text clutter as they are both easy to understand and be remembered. Hence, the future willsee the shopping portals with more simple home pages, striking visuals and extremely simple navigation bars with least of text clutter in the websites.

More of Sales Categories: At present, the e-commerce portals stay dominated by computer and consumer electronics, apparel & accessories, clothing, books, personal care, child care and other hobby items. No doubt, categories like food, beverage and gifting range which were earlier not a preference have now become a ripe opportunity for businesses that enter this arena. In the coming years, e-commerce will witness a boom in the demands of auto-parts, furniture & home furnishings, office equipment and supplies, medicine and healthcare products and many more.

Personalization: Customers nowadays don’t wish to see what everyone else is watching. Instead, they wish for something that has been customized for them only. This issue can be well tackled by the Artificial Intelligence and Machine Learning skills. The managers of the e-portals simply need to keep track of customers’ shopping behaviors and arrange for products that best suit these behavioral trends. This tailor-made experiences will better assist the sellers in the classification of the target market under various divisions based on age, gender, pay scale and so on. The result will be a much accurate and targeted marketing campaign that will boost the sales enormously.

Cross-Channel Marketing: Compared to traditional print and broadcasting mediums, digital media is a vast universe full of possibilities for the marketers to market their products & services and reach out to the target audience with various message delivery options available out there. However, restricting just to one channelof digital media for sharing the message with the audience is of no use. The marketers need to curate a master strategy that works out for all e-channels be it smartphones, tablets, desktops and other devices. As per statistics, e-traffic through mobiles will be 6 billion by 2020; this is an important information for the marketers skipping the mobile channels from their e-marketing strategies. It’s time for them to wake up and transform their present business plans into OmniChannel strategies lest they should be invisible to most of the probable audience and will be left behind in the competition.  

Flipkart-Walmart Deal- Top 3 Reasons How It Can Benefit the End Users

Recently, there has been a lot of anticipation and buzz going around the news that broke out a few days ago –

The world’s largest retailer, Walmart, has acquired Indian e-commerce giant, Flipkart for $16 billion

making this the biggest M&A deal in India this year.

Below, are the few tweets that show how people are not very excited about this news and foresee this acquisition as a big threat.

 

Kavinkn

Ashwani Mahajan

Tini-Cherian

The problem here is that we’re just dealing with one side of the story and that people are mostly having biased opinions towards this acquisition. But, it’s always more advisable to view the two sides of the coin.

Now, of course, this isn’t a new technique, but applying this can, and still does, offer fruitful results/insights.

So, what’s on the other side of the coin?

Can this acquisition in any way give a boost to Flipkart’s current performance or the expectations that online consumers have?

Let’s have a look!

Improvement in Logistics:

Flipkart has always tried to find ways to strengthen its supply chain management with its in-house logistics arm EKart.

But, with the increasing number of Indians getting into the obsession with shopping online, the question has always been-

How will Flipkart gonna keep up the pace of delivering products with faster speed and higher accuracy, something that has always been the strength of Amazon?

Walmart, on the other hand, has arguably had the highest sales per square foot and inventory turnover for the past ten years.

Need Proof?

Walmart, at any given time, operates more than 11,000 stores in 27 countries around the world and manages an average of $32 billion in inventory.

So, with these two giants coming together, there is a high probability that the packaging, warehousing, and logistics will become far more organized, addressing the major pain point of the consumers living in Tier II and Tier III cities in India.

Increase in the number of discounts and deals for the online shoppers:

With Walmart coming into the picture and having a history of being extra-selective in picking up sellers, there will be a huge competition for prices.

This, in turn, will lead to less room for dubious businesses getting registered and selling sub-standard materials at huge discounts, impacting consumer purchase in a positive way.

Also, customers should prepare themselves to see a huge influx of online-exclusive deals from Flipkart.

The whole stunt of putting up massive discounts would now be more effectively executed because of the millions of dollars absorbed from the acquisition.

Globally, Walmart has been known to offer low prices to the customers through its efficient operations.

In fact, according to Aravind of Technopark,

One of the strategies of Walmart is ‘Every Day Low Pricing’ (EDLP), which is a result of a perfect sync in sourcing, supply chain, and frontend operations.

This will help the e-commerce giant push goods at a much faster rate and cater to the remote audience within a short span of time, thus fighting neck-to-neck with its rival Amazon.

Grocery at the doorstep:

Amazon is already an established player in the digital retail market. It has unlocked its first step towards establishing the future of grocery by taking up the ownership of Whole Foods.

Flipkart on the other hand, couldn’t do much in this section despite a lot of efforts and prior investment of 460$ million into E-kart.

It would be interesting to see how Walmart, who is already an established name and is among the largest procurer of perishable-produce and fresh items can add a different color to Flipkart’s effort in trying to reinvent the retail business.

But, one thing is certain. All this competitive tussle would certainly give end users a merry time.

They would be able to grocery shop online more often, up from one-two purchases a year to multiple purchases a month.

Conclusion:

Over the last decade, the Indian startup system has seen several ups and downs with the growth of Flipkart and has had a personal connection with the brand’s success story.

We don’t know yet what can be the later impacts of this acquisition but this is for sure that things will change as two biggest competitors in the online world come neck to neck.

Now, whether the change is good or bad, that is something that we will have to see.