- Posted October 16, 2013 by
Future of eCommerce in India : 2013 Report
There is no doubt that the eCommerce sector is quite vast and it is making considerable developments. Yes, initially, this sector didn’t make a jubilant start but at this point of time we all know where this sector has reached. Seeing the buyer’s response for the e-commerce portals, the trend of e-shopping is only going to prosper. Both present and future marketers are having a close watch on the Indian marketing trends and studying the user’s behavior to offer them the best deals.
Prosperous growth –
As per the online experts, the e-commerce industry is envisaged to grow at 40% and the best part is various new players are entering this competitive industry. The investors have also shown a keen interest to invest their money to reap the benefits. Though the e-commerce sector is in the growing stage, but the performances of some of the leading e-commerce portals like Flipkart, Amazon, and DietKart have a different story to share.
As and when one concept gets popular, it successfully draws the attention of potential investors. We can discuss the example of Educomp, it’s huge success has made the investors to think about the education industry.
E-commerce industry and rural India –
The success of the e - commerce industry has even influenced the rural India. It has been observed that the rural population has started a keen interest in online shopping. The infiltration of World Wide Web and the rising numbers of users is on a rise. As per a survey, the best rural hubs in India are Dindori, Choryasi, Villupuram, Kartikapall and Guntur.
Rise of health and lifestyle portals –
Of late, India has witnessed boom in two major sectors – Lifestyle and Health. Let us first discuss the health sector. There are varied healthcare portals which are offering the patients and the users with medical advice, and also provide them with health and sports nutrition supplements and other healthy nutrition products online hence catering to the needs of fitness enthusiasts, athletes and bodybuilders. Such e-health portals have really helped the users in becoming aware of various health issues and how to cure them.
These health portals offering free diet plans help in healthy living and the best part is that the users get the solution for various health related ailments while enjoying the comfort of your home.
Various garment and lifestyle portals have also gained popularity in India in a short span of time. Contemplating lucrative business opportunities in India, various new startup portals have introduced themselves to lifestyle products. Two of the well-known lifestyle portals are FashionandYou & 99labels.
FDI in e-Commerce sector –
Soon Commerce and Industry Ministry will be holding talks with all stakeholders for allowing FDI in the e - commerce sector. Currently, 100% FDI (Foreing Direct Investment) is permitted for B2B (Business to Business) e-Commerce sector but this is not in the retail trade. As per financial experts, every year retail sector is making considerable growth.
According to a senior official of Department of Industrial Policy and Promotion (DIPP), they are getting things ready for the e-commerce sector. On the basis of that, they will formulate a policy to allow foreign investment in the e - commerce sector.
Last year, the government gave a green signal to the multi-brand retail but at the same time, they even clarified that this is not applicable for e-Commerce. DIPP already had a meeting with Nasscom in which FDI was recommended in this sector, in order to support all those Indian ventures who are on a lookout for funds.
Without a doubt, online retail is surging but at this point of time it is not growing by leaps and bounds, as the majority of the companies are still concerned about investing. There are various companies which have succumbed to the tough competition and some are acquired. In 2009, the e-Commerce sector in India has surged from $2.5 billion to $ 6.3 billion in 2011.
As per the experts, by 2020, the e- Commerce industry will touch $200 billion mark. We all are aware that the real estate sector has a strong hold in India. The e-commerce sector has successfully attained a position that they are competing with the real estate sector.
Of late, the domestic market has really illustrated significant growth in Indian economy. The domestic traffic has reported an overall growth of18. 5%.On a positive note, it can be concluded here that, as per the figures, the future of the e-commerce sector in India is quite bright.