India is Fastest Growing Digital |
results and product feeds based on the |
Commerce Market in Asia / Pacific, Yet |
shopper’ s behavior, and effectively |
Digital Commerce Accounts for Less |
engage shoppers to make them loyalty |
Than 1 Percent of Total Retail Sales. |
customers, will win over those that |
Customer experience, product range, |
cannot. |
delivery, payment and customer service |
Product Range:
Due to the nascent nature
|
are the top five things Indian digital |
of India’ s digital commerce market, |
commerce players should focus on to |
product range and choices are still quite |
grow their business. |
limited even on major marketplaces. |
Digital commerce is at a nascent stage |
Providers will need to expand the |
in India, and it accounts for less than 1 |
product ranges to make the service |
percent of total retail sales in 2015. |
attractive to shoppers through organic |
However, India is one of the fastest- |
growth and partnership. Focusing on a |
growing digital commerce markets in |
few categories, such as consumer |
Asia / Pacific. India represents a $ 7 billion |
electronics, fashion and grocery can also |
market, growing at more than 40 |
be the right strategy to deeply penetrate |
percent every year. Currently B2C |
a product segment and become the gocommerce |
leads the market in India, |
to site for that category. |
while B2B is limited to organizations |
Delivery:
This is a key challenge in India
|
that drive online sales while trying to cut |
given the less developed logistic |
costs in dealing with their partners and |
infrastructure and the lack of last-mile |
distributors. |
connectivity in remote areas. Providers |
Mobile commerce is a primary channel |
will have to partner with multiple logistic |
for digital commerce in India. Over 40 |
providers to leverage their strengths in |
percent of digital commerce |
national, regional and local delivery, as |
transactions came from a mobile device |
well as with retail stores as pickup |
in 2014, and it is likely to exceed 50 |
stations to offer reasonable delivery |
percent in 2015. Due to the low Internet |
speed and costs. They also need to |
penetration in India, the country is |
consider putting in place reverse |
leapfrogging the PC, and consumers are |
logistics for returns, which significantly |
using mobile as the primary channel for |
impacts the customer experience. |
online shopping. |
Payment: Payment has a big impact on |
There is a lot of hype due to the high |
the conversion rate, and a frictionless |
growth and high expectation of the |
payment process greatly helps increase |
market, and many companies are fast |
digital commerce sales. India has |
expanding to grab market share and |
relatively low credit card penetration, |
increase visibility. However, the fierce |
and most of digital commerce is done |
competition is pushing up costs while |
via cash-on-delivery. Despite regulatory |
the average order value remains low. |
challenges, digital commerce providers |
Players need to execute on the basics to |
should work with payment providers to |
ensure the growth is sustainable. |
offer a frictionless payment experience. |
Gartner identified the top five things |
Customer Service:
Besides offering
|
Indian digital commerce players should |
immediate help on site and via the |
focus on to drive growth: |
contact centre, and making processes |
|
Customer Experience:
This is the most
|
and cost information transparent, digital |
important differentiator of a digital |
commerce providers should think |
commerce service as price becomes |
carefully about their return strategy. A |
transparent across sites. Providers that |
generous return strategy encourages |
can design a compelling user interface |
sales especially for categories such as |
( UI), personalize landing pages, search |
fashion and consumer electronics. |