E-commerce , the ultimate solution for small businesses ?
Everything is online , everyone is online , E-commerce has transformed the way business is done in India & the whole world. Indian E-commerce market is expecting to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much of the growth for the industry has been triggered by an increase in internet and smartphone penetration globally. This ongoing digital transformation in the country is expected to increase
But what do all these e -commerce websites like amazon , flipkart , zimbave , Nykaa etc ,have in common except the fast services with premium quality ? You guessed it right , the ” e “.
India has the second highest internet user in the world. The E-commerce industry has been directly impacting micro, small & medium enterprises (MSME) in India by providing means of financing, technology and training and has a favorable cascading effect on other industries as well. Technology enabled innovations like digital payments, hyper-local logistics, analytics driven customer engagement and digital advertisements will likely support the growth in the sector. Smartphone usage is expected to rise 84% to reach 859 million by 2022.
The Corona effect
The current Covid-19 situation has just fueled the growth of e-commerce , this pandemic was a game changer for e -businesses . From the necessary grocery for a home cooked meal to swiggy , dominoz , Zomato providing a tasty meal at your doorstep. This led to having the power to avoid crowded markets or a really tiring long line in a grocery shop , now just form few clicks and the comfort of home , safely delivered.
In my personal experience with not being able to go out and purchase even basic necessities , through a friend of mine I got to know a local Kirana shop was accepting orders , I used whatsapp to get into contact with them . Dropping them a text with all the items I needed with the quantity , address and for that they replied with the availability and special offers , they also updated status when re-stocked and discounts on a frequent base. After almost a week there were around 4-5 Kirana providing home deliveries !
In April 2020 during the early stages of pandemic , Reliance Industries (RIL) started home delivery of essentials in partnership with local kirana stores in Navi Mumbai, Thane and Kalyan. It’s the same process as visiting a Kirana shop but with no crowd & no cash in hand.
Food delivers such as Zomato , Swiggy are the new home food delivery competitors such as the big names coca cola & pepsi or apple & samsung of Indian market , made in India as well. Getting the food you like to your place isn’t a new thing but the ability to have so many options to choose from with not so much of a waiting time also while having the comfort of paying it online from your sweet home would be equivalent to a space car for the people back in the 60s.
Company such as Flipkart & Nykaa which were just small e-business at a time now own real life stores , in February 2020 Flipkat has set up a ‘Furniture Experience Center’ in Kolkata, its first offline presence in eastern India & the beauty brand Nykaa opened its 55th offline store marking success in tier II and tier III cities , a huge success for the companies to take a step in the offline market as well.
~ The Future ~
India ‘s e-commerce is booming , soon enough Reliance will be investing Rs 20,0000 crore (US$ 2.86 billion) in its telecom business to expand its broadband and E-commerce presence and to offer 5G services in India. Not leaving the rural India behind in the Union Budget 2020–21, Government has allocated Rs 8,000 crore (US$ 1.24 billion) to BharatNet Project to provide broadband services to 150,000-gram panchayats.
Heavy investment made by the Government in rolling out fiber network for 5G will help boost E-commerce in India. Since 2014, the Government of India has announced various initiatives, namely Digital India, Make in India, Start-up India, Skill India and Innovation Fund. The timely and effective implementation of such programs will likely support growth of E-commerce in the country.
As of now and expected future , E-commerce and logistics is the best investment , it has made a tremendous change the way we participate in the market just a good presentation of your company or work online can attract millions of people , which as we all have seen is not impossible anymore. Now with billions of dollars spent by governments and businesses all around the world it’s easy to see not only for big brands , E-commerce is the future for all.