Innovation of disruptive technologies stands as a strong foundation for the growth of E-Commerce industry in the world. Million dollar business of India E-Commerce industry is now a billion dollar business with number of international and regional players. Indian E-commerce industry is expected to grow 45% for the year 2015. Report from Gartner reveals that Indian E-Commerce industry will grow into a $6billion in the current year which will be 70% higher than the last year (Capital numbers, 2015)
2.1 Industry ecosystem in India
Amazon model of E-Commerce was started by the regional firm named Flipkart created the first ever Online shopping site in India. Growth of the firm and its simplicity attracted more Indians to look it as an opportunity (ACNeilsen, -2014). Presently the numbers of regional E-Commerce firms are pooled with unique selling offers. Boom of the industry came in the year 2013, with the entry of international players like Amazon and EBay. International firms are trying to gain momentum with the stiff competition prevail in the industry. Recently, Amazon purchased the regional Online retailer Jabong.
M-commerce spread its aroma with the help of supporting technologies and the basic growth of Internet users in the country. In the year 2013 Indian Internet users was around 205 million it has grown to whooping figure of 335million for the year 2015. Smart phone penetration in India, increased facility for communication, social media sharing and cloud computing boom in India helps the M-Commerce industry to grow evidently (Wagner, 2011).
Online shopping gives the luxury of getting anything from home with the technology available. Indian consumers are highly attracted by the cash on delivery service offering by the firms. 47% of consumers are interested in clothing, accessories and footwear, 44 % of the consumers are interested in comparing prices for reservations in hotels, tickets. Majority of the Online shoppers falls under the category of millennial (Capital numbers, 2015).
5.1 Trends for growth in 2015
Investments in digital media is increasing in India, it is around 29% in the year 2014. Online sellers need to invest more in digital ads and attract more customers from social media. It will help in attracting baby boomers and millennial.
Loyalty programs, points and rewards will be another important trend that will help in increase customer retention in Online shopping (Close, 2012).
Online shopping safety and security features will be a key for growth.
Developing technologies to enter into the wearable’s market is on the cards (Capital numbers, 2015).
Growth of E-commerce industry is triggered by number of external factors. Changes in the consumer needs and changes in life style changes stay as a solid reason for the success of E-Commerce in India. Growth expected for the year 2015 clearly stresses the message after China, and Indonesia, India is having high potential than any other market in the world.