India is currently experiencing a major technology boom. After witnessing other parts of the world become major innovative technology power houses, India is finally seeing its own growth in technology use and innovation. That means a lot of changes, including e-commerce.
Agam Berry, entrepreneur and Co-Founder of Quantified Commerce, works in both the United States and India and sees this change being huge. Here is a look at why he believes India is the next frontier for e-commerce business.
Limited Availability in Stores, Drives People Online
India is a huge country. When compared to the United States, they simply do not have the same number of regular stores for people to turn to. Without true stores, people need to shop online to get what they need.
One reason why there are not many stores that carry a huge variety is the fact that it costs a lot of money for operational costs. Since profit margins are not that high, every little bit matters. That is why a lot of companies in India are opting to create digitally native brands, or brands that exist exclusively online.
Stores can also struggle for prime real estate locations. Traveling to and from a major store is something that does not happen nearly as much in India as it does in other major countries. They are not getting the same type of customers that can be drawn online.
Finally, people who have not been to India think it is one big urban area. The truth is, about 70% of the population in India is rural. That makes it even more difficult to get to a physical store. Shopping online is much more convenient and affordable for these people.
Smartphone Use in India is Growing
It took a while for India to have the infrastructure for smartphone use to really take off. It is just getting to the point where people are using their smartphones quite a bit at home and when traveling. That is opening up a whole new world for e-commerce.
Smartphones are ushering in a new era in India. It took a little bit longer for India to reach this point in e-commerce, but it is growing at an alarming rate. Having credit and debit cards linked up to smartphones makes it extremely easy for people to place orders on their phone without even thinking twice about it.
Purchasing using a debit or credit card is something the Western World is used, however, most people in India prefer a cash on delivery payment option. Many e-commerce companies, like Quantified Commerce, are adapting their approach to meet cash on delivery needs driven by more smartphone use and e-commerce.
Social Media Use in India is Growing
Social media plays a huge role in e-commerce all around the world. Influencers and brands are really doing a good job of advertising exactly what they offer. Social media is indirectly responsible for billions of dollars spent around the world each year.
Tied in with smartphones, social media is starting to really take off in India as well. It is one of the most common ways for the younger generation to communicate, and even older people are getting behind it as well.
Brands understand that social media can have a huge impact in India within the next few years. They’re applying what they learned from different countries when going after the Indian market.
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