Every nation strives to maximally intertwine its economy among its citizens as seamlessly and consistently as possible. India is a vast nation dedicated to harnessing the power of digital technology to connect consumers in the remotest of areas. Its efforts have helped it overcome substantial Internet infrastructure limitations, incorporate an array of new revolutionary payment methods, and companies to step up to the plate to fulfill people’s needs in fantastic ways. Odds96.in today gives you the full story.
Indians having their shopping whims fulfilled from the comfort of their homes
A lot of people right now are looking at that vast Indian subcontinent as a great candidate to become the next China. Its population is in fact on track to overtake China’s and since the 90s reforms its economic growth has been on sharp ascension. It’s acquired an educated white-collar middle class as well as rural areas catching up that are accessing any consumer delights and necessities they need delivered right to their doors. One of the most important developments facilitating this meteoric trend is the continuing spread of smartphones. Though this trend began long before COVID-19 swept the planet, the pandemic certainly accelerated it.
Mordor Intelligence projects Indians’s current online retail market to hit 137 billion dollars by the end of this year. Not only is the consumer base rapidly expanding, but the younger generations in particular are growing perpetually more accustomed to a digital lifestyle. People socialize with their friends online, make microtransactions to customize their online gaming, so now even the broad variety of ethnicities that compose India are being offered precisely the shopping items that correspond to their precise sensibilities and desires.
Many a brick-and-mortar store went under during COVID and the preference for more convenient shopping offering more options and saving people the trip of going to the store has proven a trend that is here to stay.
Technological advancements and logistics innovations transforming e-commerce
The most common device that people like to shop online on is their smartphones, especially in rural and semi-urban areas where internet connectivity is steadily improving. Artificial intelligence and machine learning have played a pivotal role in personalizing shoppers’ experiences.
These enable:
- targeted product recommendations;
- predicting consumer preferences;
- improved customer service through AI-powered chatbots;
- algorithms to be increasingly used to optimize inventory management and market demand;
- dynamic pricing strategies.
When it comes to the online marketplaces that have blown conventional stores out of the water, they tend to share many of the same strategies:
- A vast, unparalleled selection of products
- A single-click, quick shopping experience
- Local warehouses located around India enabling delivery in a couple of days, sometimes in a single day
- Customer reviews allow for people to be able to objectively evaluate quality rather than risking spending on an unknown product, although this comes with the downside of third-party sellers being able to abandon customers that do end up developing complaints
- Artificial intelligence and machine learning have allowed vast quantities of information to be developed to optimize the sales process and generate recommendations most suitable for specific shoppers
- Email campaigns and retargeting allow for easy ways of presenting customers personalized offers on a repeated basis
Some of India’s biggest pioneers in revolutionizing such business models have been Delhivery and Blue Dart. This has opened the doors for expansion into underserved regions. There are also third-party logistics providers helping e-commerce companies scale operations and reach larger customer bases.
Popular Indian Payment Methods Facilitating E-Commerce Growth
While more traditional payment methods like cash on delivery still have a strong presence in India, particularly in rural regions, the government has launched a push to thrust the nation toward a cashless economy. This is in stark contrast to how sluggish payments were in the past. People used to have run to ATMs to get cash, and bank transfers used to be pricey and take days to complete.
UPI
The most ubiquitous and widespread way of exchanging money for any quick services, cost sharing, and quick electronic transfers in India has been the Unified Payments Interface. All people need is to ask the person’s phone number or scan their bar code and they can pay for entering a theme park, a metro ticket, piano lessons, or their internet bill. The UPI system has added substantial liquidity to the Indian economy.
Digital wallets
A handy method of exchanging money which has been around longer than UPI, is e-wallets. These are more secure and add flexibility to paying for services, as they can add a variety of cards and add funds in a range of other ways which can be accessed via these electronic wallets. People can pay for products and services on e-commerce platforms using:
- Paytm;
- PhonePe;
- Google Pay;
- Amazon Pay;
- MSwipe;
- Axis Bank Lime;
- Ola Money;
- Oxigen;
- Payzapp;
- Airtel Money;
- Yono SBI;
- JIO Money;
- Freecharge;
- PayUmoney;
The user registers their debit card data in the app, aggregating them all in one place. It’s safer to make payments that way and doesn’t require users to carry their cards around with them.
Buy now, pay later
This method has rapidly gained traction in India, especially among younger consumers. Platforms like Simpl, LazyPay, and Postpe allow consumers to make purchases on e-commerce sites and pay in easy installments over a specified period. This has been highly effective in enabling consumers to shop for high-value items without immediate financial strain. BNPL has also been integrated into online marketplaces like Flipkart.
Mobile payments and QR codes
These allow people to easily send money to merchants at physical stores or for online orders. It’s simple, fast, and easy to use, offering an efficient alternative to cash and card payments.
Cryptocurrency payments
While still not particularly widespread, these are gaining traction among tech-savvy Indians. They are faster and can be completed across borders with low fees and anonymity. Though there are regulatory concerns with these revolving around money laundering and terrorism facilitation.
India’s E-Commerce leaders
The nation’s e-commerce market is home to a few dominant players that have successfully tapped into the country’s vast, diverse consumer base. Most of these are home-grown.
Here are the key players:
- Flipkart: has carved itself a clear role as the big kahuna of Indian e-commerce. It has done so by redefining a variety of ways online shopping is done in India, now holding a 48% of the market. Flipkart has gained a reputation for its aggressive discounting strategies during certain events like Big Billion Days. A 77% share of it was purchased by Walmart in 2018.
- Amazon India: the giant entered the market in 2013 and has become one of the number two player on the market. This company has itself captured 32% of market share, offering the same signature products it does worldwide but adapted for Indian audiences.
- BigBasket: this is India’s largest online grocery retailer, selling packaged goods, fresh food, hygiene items, and household essentials. It holds 35-40% of the online grocery market.
- Reliance Digital (JioMart): one of India’s largest conglomerates, Reliance Industries, entered the e-commerce race, launching JioMart in 2020. The company has used its extensive in-person retail network to revolutionize the grocery and essentials market. People can use WhatsApp for easy shopping and payment as well as have their goods delivered to their homes.
- Zomato and Swiggy delivery companies: these outfits have blurred the line between food and restaurant deliveries and ordinary e-commerce goods. They operate in over 500 cities all over the country, racking up annual revenues of 2.13 and 1.64 billion each.
- Paytm Mall: Paytm entered the e-commerce market on the back of its success as a digital wallet, launching sales from electronics to clothing featuring tempting cashback offers. The venture is now worth 13 million dollars.
These companies have forever changed the trajectory of shopping in India, setting consumers up for a more customer-centric experience adhering to the most popular regional tastes and the most that can be desired in convenience.