Evolving Trends in Ecommerce 2014

Ecommerce in India is approaching its high point in 2014. The market is growing at rapid pace and already Flipkart, India’s leading ecommerce website has hit $1 billion in GMV run rate. SnapDeal and Amazon are said to follow suit soon. The industry is also seeing great amount of investor interest as well as potential of foreign players. Here are some of the evolving trends in ecommerce in 2014.

#1. Paid Premium Delivery Service

The biggest problem with ecommerce sites is the inability to differentiate. While most do it as we will see further in the report through “exclusive deals” and special add-ons,few have taken the route of “wowing” the urban repeat purchaser. Websites such as Flipkart, Myntra, SnapDeal, Infibeam, Jabong and Amazon have started offering Faster Delivery or 1 Day Delivery services for select cities upon payment of a nominal shipping charge.

#2. Rise of Fashion category

Growth in ecommerce seems to be driven by Fashion categories in recent times. In fact Fashion is growing at a whopping 100% from 2012 to 2013 while the entire Indian ecommerce grew at 88% in 2013.

As per publicly available info.

#3. Exclusive Launches

While most ecommerce stores fight tooth and nail in terms of margins and service to entice the users, few have cracked a truly novel way to deal with the Market clutter. Exclusivity is the new mantra in Indian ecommerce. Be it with electronics or with Fashion brands, ecommerce players are finding more and more extra ordinary deals to grab more users and increase transactions.

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So while Flipkart launches the Motorola Moto G and Moto X to India exclusively, SnapDeal is an exclusive partner with Micromax for most of their flagship models. While this exclusivity is more or less for a short duration, the effects are more than flattering. Within hours of its launch 20000 units of Moto G was sold in India.  Micromax similarly launched the Canvas 4 exclusively to SnapDeal.

In addition to these, International Fashion brands are too heading to exclusive tie up with leading fashion brands such as GAP, Harvard, and Desigual. Myntra is also typing up with fashion designers Rohit Bal, Manish Malhotra and Anita Dongre to present exclusive spring and summer collections.  Jabong meanwhile has tied up with Crocs, Jack & ones, Puma, W Shop, Vero Moda and Casio.

#4. In House Brands- Private Label Brands

One of the leading revenue generators for offline retail is the private label brands. From groceries to condiments, offline retailers have managed to gain massive margins on private label alternatives on all the popular offerings. Online retail brands are also following suit in a big way. Leading the charge on this front is Flipkart with the DigiFlip brand,Flipkart’s own brand that started off with bags but has grown to Tshirts, sportswear, shoes and much more.

Myntra on the other hand has launched 10 new in house brands and even pulled in popular Bollywood actor Ranveer Singh to promote its casualwear brand, Roadster. Other brands of Myntra include, Mast and Harbor, Dressberry, Anouk, Kook n Keech, Kook N Keech Marvel,  HRX( a brand endorsed by HritikRoshan), SherSingh, ETC and Myntra. Jabong meanwhile will launch 4 in house brands in April.

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#5. Niche Stores

In ecommerce not everyone can win all their battles which promote several players to make a mark by being specialists in one aspect or other.  While some specialize in making popular culture T-shirts, other specializes at capitalizing current events and Politics. Indian ecommerce has seen the emergence of the Niche stores.

 

Store Specialization
BlueGape Popular Culture Tshirts
RedWolf Television Show theme Wear
Happily Unmarried Bachelor Pad Collectibles
Bewakoof One Liner Tshirts
LensKart EyeWear
FunSexyYou Erotic Wear and Lingerie
MakeMyDrink Liquor
BabyOye Baby and Kids Wear

 #6. MOBILE ACCESS IS ON FIRE

Mobile Internet Penetration is growing at a whopping pace in India and with it the number of online shoppers via mobile is also increasing. At the moment MySmartPrice receives 45% of all its 12 Million monthly visitors through mobiles. The future is firmly mobile centric with more ecommerce stores also offering the facility to shop through mobiles.

As per publicly available info.

#7. NO MORE FREE SOCIAL MEDIA TRAFFIC

Facebook’s new algorithm has led to the decline of one of the biggest contributor to traffic for early ecommerce sites. While Kunal Bahl, Founder of SnapDeal once said 30% of all sales generated on SnapDeal comes through Facebook. Today most posts need to be promoted to reach even the current crop of Fans of a page and Ads too have relatively low click through.

Other social media such as Google+ and Twitter are far from being sales oriented and most ecommerce stores use them for Service or just to maintain their presence. Clearly the hey-days of generating free traffic through social interaction are all but gone.

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#8. ECOMMERCE IS YOUNG

The biggest asset India has is also the greatest asset for Indian ecommerce. India’s upwardly mobile youth is also one of the largest contributors to the growth of Indian ecommerce. 45% of all Traffic that comes to MySmartPrice is between the ages of 18 to 24.

#9. WOMEN ARE INCREASINGLY SHOPPING ONLINE

The Indian ecommerce is growing at a whopping pace especially in sectors that are women centric. Home Furnishing, Fashion, Health and beauty and Kids stores are increasingly gaining momentum. 2013 had 4 Times the number of women shop online than in 2012 and women contributed to around 26% of the overall ecommerce market.

As per publicly available info.

#10. BIG MOVERS IN FASHION CATEGORY

As per MySmartPrice Data.

#11. MOST POPULAR BRANDS ONLINE

As per MySmartPrice Data.

About the author: Sulakshan Kumar is the Co-founder & Director at mysmartprice.com. He started with this online venture in 2010. His earlier associations were with Infosys Technologies Ltd. and Oracle. 

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