After a hiatus of much required revamp, Ecommerce is here again perched as a prelude on young entrepreneurs’ lips. The fever caught the GenX business minds in 1999 when Fabmart & firstandsecond.com became quite a rage in the nation. Rediff too started sailing with the winds while Sify joined the bandwagon too. Gradually, Ecommerce in Indian started taking gear – Apnaloan, Shaadi.com started moving in with fast track. But alas! The fall of April 2000 suppressed down the growth with a breaking news – NASDAQ CRASHED!
CEO of Indiaplaza, K. Vaitheeswaram remembers the day very vividly, “More than 1000 ecommerce set ups in India ruled the warm winds but the Nadsaq crashing turned waters to all endeavours. Many of them put shutters to their website and many packed the bags off.” He says, “Dotcom eventually took a leap from ‘hip’, ‘cool’ to ‘fake’, ‘naïve’ and more.”
Sooner by the end of 2007 when India finally collected broken pieces to become a cusp of IT revolution, global eyes popped inside out! There was no looking back since with a bang!!
It showed a phenomenal growth in the last 5 years with about 50% growth fiscally. This time the growth story is driven by the following trends.
- Sudden rise in the growth of internet users.
- Diversification of Internet enabled devices.
- Growing acceptability of online payments.
- Favorable demographics
The current market scenario suggests a staggering growth of ecommerce section by 38% in 2015 that indicates crossing of a $ 15 billion mark! Private equity funds and Venture Capitalists have shown an interest towards of growth of ecommerce in the nation meanwhile.
Based on active participation in ecommerce transaction, it can be broadly categorized into following:
- Consumer to Consumer (c2c) Example: Online travels and classifieds
- Business to Consumer (b2c) Example: online retail, etailing, classifieds, financial services, digital downloads
- Business to Business (b2b) Example: Online classifieds
According to IAMAI and IMRB, the ecommerce market in India had already crossed $13.4 billion by end of 2014. Travel industry, however, played it big in the ecommerce industry growth in India.
However, there are certain pros and cons of this radical phenomenon.
- Proliferation in the sales of computer applications and devices.
- Internet gaining the majority of time being spent by an average Indian.
- More secured payment options being introduced.
- Volume and average value spiking up for credit cards and debit cards.
- Lower Broadband speed
- Loopholes in Payment options
And finally, there are some challenges too that needs an honorable mentioning here.
- Lack of ecommerce law enforcement
- Fast changing business models
- Manpower shortage
- Customer Loyalty
- Reduced entry barrier leading to prolonged incompetency.
However, despite all the facts and figures, the ecommerce in India continues to bloom which enjoys a strong support from the Indian Government as well.