Home / Knowledge / News / Information Technology / Gartner identifies five factors to boost India's e-commerce
Gartner identifies five factors to boost India's e-commerce
06
Nov '15
Customer experience, product range, delivery, payment and customer service are the top five things Indian digital commerce players should focus on to grow their business, Gartner, Inc, an American information technology research and advisory firm providing technology said in a press release.

"Digital commerce is at a nascent stage in India, and it accounts for less than 1 per cent of total retail sales in 2015. However, India is one of the fastest-growing digital commerce markets in Asia/Pacific," said Gene Alvarez, managing vice president at Gartner. "India represents a $7 billion market, growing at more than 40 per cent every year. Currently B2C commerce leads the market in India, while B2B is limited to organizations that drive online sales while trying to cut costs in dealing with their partners and distributors."

Mobile commerce is a primary channel for digital commerce in India. Over 40 per cent of digital commerce transactions came from a mobile device in 2014, and it is likely to exceed 50 per cent in 2015. Due to the low Internet penetration in India, the country is leapfrogging the PC, and consumers are using mobile as the primary channel for online shopping.

"There is a lot of hype due to the high growth and high expectation of the market, and many companies are fast expanding to grab market share and increase visibility. However, the fierce competition is pushing up costs while the average order value remains low. Players need to execute on the basics to ensure the growth is sustainable," said Alvarez.

It said customer experience is the most important differentiator of a digital commerce service as price becomes transparent across sites. Providers that can design a compelling user interface, personalize landing pages, search results and product feeds based on the shopper's behaviour, and effectively engage shoppers to make them loyalty customers, will win over those that cannot.

As far as product range is concerned, the release said that due to the nascent nature of India's digital commerce market, product range and choices are still quite limited even on major marketplaces. Providers will need to expand the product ranges to make the service attractive to shoppers through organic growth and partnership. Focusing on a few categories, such as consumer electronics, fashion and grocery can also be the right strategy to deeply penetrate a product segment and become the go-to site for that category.

Delivery is a key challenge in India given the less developed logistic infrastructure and the lack of last-mile connectivity in remote areas. Providers will have to partner with multiple logistic providers to leverage their strengths in national, regional and local delivery, as well as with retail stores as pickup stations to offer reasonable delivery speed and costs. They also need to consider putting in place reverse logistics for returns, which significantly impacts the customer experience.


Must ReadView All

Azerbaijan's Gilan Textile Park raises exports by 40%

Apparel/Garments | On 18th Aug 2018

Azerbaijan's Gilan Textile Park raises exports by 40%

Azerbaijan's Gilan Textile Park has raised its exports by 40 per cent ...

CPD studies living cost of Bangladesh RMG workers

Apparel/Garments | On 18th Aug 2018

CPD studies living cost of Bangladesh RMG workers

The living cost of readymade garment (RMG) workers in Bangladesh...

Brazilian cotton price index returns to April 2018 level

Textiles | On 18th Aug 2018

Brazilian cotton price index returns to April 2018 level

Cotton prices dropped in Brazil in the first fortnight of August as...

Interviews View All

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Top executives
Fabric manufacturers

Domestic manufacturers would get an edge over imported products

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Abhishek Dhanuka

Vyom International Pvt Ltd, established in 2002, is one of Surat's leading ...

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Melissa Tate
University of New South Wales

<div><div><div><div><b>Melissa Tate</b>, a well-known scientist currently...

Matthew Kolmes
Supreme Corporation

Supreme Corporation manufactures innovative specialty yarns and safety...

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Sanjukta Dutta
Sanjukta's Studio

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

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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

Leave your Comments


August 2018

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

news category


Related Categories:

Advanced Search