Home / Knowledge / News / Apparel/Garments / Indian e-commerce focussing on increasing rural reach
Indian e-commerce focussing on increasing rural reach
30
Mar '16
Indian entrepreneurs aspiring for business on the web should stress on penetrating small towns and villages at home before seeking greener pastures overseas, according to a Bloomberg report.

“There are multiple things Indian companies can do before they start looking abroad. We're very focused on getting into rural India,” Radhika Aggarwal, co-founder and chief business officer of online retail platform Shopclues.com said at a panel discussion at Bloomberg's India Economic Forum in New Delhi.

“We haven't even scratched the surface yet in India,” said Aggarwal, citing a very small proportion of Web purchases compared with traditional retail.

Over the last decade, India has emerged as the world's fastest-growing smart phone market. The government has boosted e-commerce by launching high-speed broadband connectivity that is expected to cover the country's rural nooks. 

The combination of more phones and faster access has spurred hundreds of e-commerce startups, peddling services from selling homes online to delivering gourmet Indian meals, making it one of the most fertile entrepreneurial ecosystems in the world.

Prime Minister Narendra Modi has said connectivity coupled with digital commerce has the potential to propel India from a $2 trillion economy to a $20 trillion economy.

Right now there is a lag between urban India and the countryside, but it's narrowing down quickly, Aggarwal said. The next 100 million people who will participate in e-commerce will be from India's smaller towns, she said.

Now that access to e-commerce is there, the next step is to boost spending to be able to compare India with online juggernaut China, said Prashanth Prakash, a partner at Accel Partners. India needs to add another $1 trillion to $2 trillion to the economy to really see the China comparison play out, he said.

“The average spending from an e-commerce buyer in India is $250 to $300,” Prakash said. “Eight years ago in China it was $400. So there is a really huge chasm there,” he pointed.

Legacy companies in India shouldn't be written off yet either, said Raghav Bahl, founder of digital media startup Quintillion Media Pvt Ltd. Unlike in the West, online changes in India are not occurring sequentially to traditional businesses but in parallel, helping e-commerce models evolve in a unique way, he said. 

“The end point of e-commerce will be very different from elsewhere,” Bahl said.

E-commerce entrepreneurs will have to be “cognizant of the customers' journey” to online shopping and “seamlessly hold the customers' hand,” Accel's Prakash said. “There will be some very interesting businesses we're starting to see and fund,  where offline and online will nicely coexist in this country -- maybe a little bit like what we see in China.”

Must ReadView All

Courtesy: Creora

Textiles | On 28th Mar 2017

Hyosung holds Creora workshops in China, HK & Taiwan

South Korean specialty fibre producer Hyosung held a series of...

Apparel/Garments | On 28th Mar 2017

US withdrawal from TPP to not impact Vietnam garment exports

A high ranking official of the Vietnam Textile and Apparel...

Apparel/Garments | On 27th Mar 2017

NYCEDC announces $51mn package for NYC garment industry

New York City Economic Development Corporation (NYCEDC), in...

Interviews View All

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search