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

Textiles | On 24th Jul 2017

Govt extends deadline for GST composition scheme to Aug 16

The Government on India has extended the deadline for small...

L-R: Dhanapal, JMD, Best Corporation; Prabhu Damodaran, Convenor, ITF; Narayanasamy, MD, Micro Cotspin; Senthilnathan, MD Rasitex India; and Sabapathy, MD, Prasanna Spinning Mills

Textiles | On 24th Jul 2017

TN mills seek partnership with cotton growing states

Spinning mills in Tamil Nadu are seeking stronger partnership with...

Textiles | On 24th Jul 2017

Irani terms GST as a ‘great step towards transparency’

Union textiles minister Smriti Irani has termed the Goods and...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Mohammad Hassan
Biax Fiberfilm

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X