Session on E-Commerce Landscape & Opportunity in India taken by Vikram Sehgal, Vice President, Forrester Research at Internet Retail Expo 2013. In this session Vikram provided the overview and landscape of opportunity of ecommerce, he also discussed about the key fundamental drivers for ecommerce in India and why multichannel is important.
- Mobile internet will play a larger role in Market like India; fundamental behavior of what people will be transacting from Mobile will be different from what they are transacting on the ecommerce site. It will play important role not only as a transactional channel but also enabler of offline retail.
- Markets take a similar path when it comes to development of e-commerce not everyone moves in a same pace, few move much faster, largely on a behavioral perspective this is how it evolves.
- Travel has been the key driver of ecommerce regardless of which market it look at be it India, Brazil, etc. And travel is the largest category in India, then consumer electronics and apparel.
- Ecommerce in India is current about INR 75Bn; expected growth rate is definitely there. Consumer and electronic products makes the large chunk of where the market is.
- India’s percentage of total retail is extremely small, there is lot of opportunity, fragmented nature of retail in India is actually the opportunity for ecommerce because, if you think about why people shop online, price is important its lowest common denominator beyond it it’s the availability of product selection.
- Larger fundamental driver from the consumer perspective is income and tenure, Income essentially means the you have larger disposable income, you are more likely to spend, you are more technology savvy. Tenure is basically how long have you been online, more you would have been online you are more likely to do sophisticated activity, the more time and money you will be spending online.
- When you think about ROI on your site operations, don’t just think of pure transactional rupees that move through that site, how much transaction you were able to move through your website but what overall impact it had on your business. It’s a larger number but a truer metric to look at. “Ecommerce is not a Twenty Twenty it’s a Test Match.”