Amazon and Alibaba may be seen as the global leaders in e-commerce, but local companies in various countries are on the rise and contending for big chunks of the e-commerce scene. India in particular is experiencing a boom in e-commerce activity, and local companies seem to be making the biggest splashes. Online retail is increasingly a go-to service for Indians — both in urban and rural areas. With the continuing growth of internet expansion, more users are signing online to use the web as a shopping center, and the e-commerce sector in India is expected to continue booming.
Multiple reports predict continued, exponential growth for India’s online retail markets; the global investment banking company UBS has published figures that show that the e-retail market is not only healthy, it’s poised for growth that could hit $50 billion by 2020. The report details that initial issues like “consumer acceptance, lack of credit and debit card penetration” are being overcome as technology advances and e-commerce companies address those issues. Solutions like cash-on-delivery and e-logistics have aided companies overcome those hurdles that once inhibited them from wide expansion.
A separate report from Morgan Stanley issued figures that double UBS’s forecast; the bank expects the Indian e-retail market to become the largest sector in the country’s overall internet market and reach a valuation of $102 billion by 2020. Forbes profiled several ways in which e-commerce is soaring as a market in India. Online retailer Flipkart — a company that actually has more users in India than Amazon — is innovating ways to solve the last-mile delivery problem. The postal service is working with e-commerce companies to deliver packages to rural regions, gas stations are looking into being pick-up points for packages, and grocery stores are testing becoming pick-up locations as well.
Indeed, grocery deliveries are seen as a huge potential driver of the e-commerce market. Various startups are gaining funding quickly. Overseas investors like Sequoia Capital are supporting companies like PepperTap which promise two-hour delivery of groceries through its application.
The local nature of these companies’ business premises seems to be the leg up they’re banking on to gain ground in a very competitive e-retail market. But if the banks are right e-retailers will see a significant boost in business as the years go on.