Today e-commerce has become an integral part of our daily lives. The Indian e-commerce sector has experienced remarkable growth and transformation and has evolved from being a niche market to a significant player in the retail eco-system. Many niche start-ups and brands have grown in the e-commerce sector in India catering to specific needs and target groups. The increasing penetration of smartphones, internet connectivity, and digital payment systems has been instrumental in driving the adoption of e-commerce in India.
To add to this growth, the pandemic acted as a strong catalyst accelerating the shift towards online shopping as people sought convenience and safety. It pushed the brick and motor brands to have an online presence, driving them to explore many options of digital selling via website or social commerce presence. It lead the brands to recognize the importance and potential of e-commerce with projection indicating that the Indian e-commerce industry will surpass the US online market sector by 2034 according to the India Brand Equity Foundation (IBEF) report.
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As new shopping patterns emerge, and consumers are making conscious shifts in their choices, its vital to talk about the trends that are influencing the e-commerce sector and shaping its future.
New e-tailing models
Social commerce and live commerce have gained significant traction in the past few years. Brands that are unable to invest in their own website, which they may consider investment heavy, are now spending time and money to build social commerce platforms that are affordable, effective, and able to connect easily with consumers. Social commerce has been particularly effective in Tier II and Tier III cities.
Live commerce is when consumers are shopping during live streams, while its still in its nascent stage but experts point that this area in commerce will become a prominent trend for the market.
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E-commerce roll-up firms
Direct to consumer (D2C) commerce has given birth to roll-up firms in India. Roll-up firms in e-commerce context are firms that acquire multiple promising D2C startups and third-party seller, consolidating their operations under a single entity to achieve economies of scales. With substantial capital infusion, these roll-up firms are establishing processes, teams, and technologies to scale multiple brands. This model enables these small brands to grow faster and optimize operational costs.
Global expansion of Indian D2C brands
The rise in Indian D2C brand has seen remarkable growth and several unicorns are emerging every year from India that are directly in the e-commerce sector. With disruptive market strategies and product development along with technological innovations, many Indian brands are now entering international markets initiating international operations. They are paving path for new brands to enter the global markets.
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Omnichannel commerce adoption
E-commerce brands are now focusing to build multi-channel presence as there are depleting store footfalls. The surge in e-commerce has fuelled the growth of omnichannel strategies. D2C brands are leading the omnichannel strategies that lead to enhancing brand visibility and revenue generation. There is conscious shift from discount-driven commerce to more value on the convenience-driven commerce. When brands take on board the omnichannel approach they offer the consumers a seamless shopping experience. From their own web presence to social commerce and live commerce, plus working with other brands to penetrate different market segments.
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Focused approach on tier II cities
Based on research, reports and expert analysis, Tier II cities are now the driving growth of India’s e-commerce industry. Young consumers and the rising middle class of Tier II cities are one of significant contributors of the e-commerce sector. Comprehending and recognizing the potential of this segment of India, e-commerce brands are investing heavily in infrastructure to offer a seamless shopping experience in these cities. Online grocery shopping is gaining immense presence and is catering to the consumers in these regions.
The post-purchase experience
Enhancing the post-purchase experience is a key trend in the e-commerce sector. Brands now understand that the customer-brand relationship extends beyond the purchase. To help foster a long-term relationship, brands are now investing in technology solutions that elevate post-purchase experience. This is where automation, AI, AR/VR, blockchain and other emerging technologies are playing a crucial role in streamlining supply chains, ensuring faster delivery and understanding consumer needs. The focus is on delivering a seamless shopping experience with quicker deliveries.
With the continuous growth in e-commerce sector and the dynamic evolution of technologies impacting our daily lives, brands must stay attuned to these trends and adapt their strategies to capitalize on the opportunities. Indian e-commerce industry is poised for consistent growth with Tier II and Tier III cities becoming a core focus as the young shoppers there are rising.
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