With more and more people buying products and services online, the digital commerce market in India has risen exponentially. Experts believe that the rise in smartphone usage, internet penetration and ease of payments has given rise to digital commerce.
Out of which, mobile commerce has become a primary channel for digital commerce in India. Companies have been rolling out apps for consumers to provide hassle free transaction. As per the Gartner report, over 40 percent of digital commerce transactions came from mobile devices in 2014, which is likely to exceed 50 percent in 2015.
However, the report also mentioned that digital commerce is at a nascent stage in India. Presently, it accounts for less than 1% of total retail sales as of 2015. Despite this fact, the country is also one of the fastest-growing digital commerce markets in Asia/Pacific – growing at more than 40% every year with B2C commerce leading the race.
According to the report, India represents $7 Bn market, growing at more than 40% every year with B2C commerce leading the Indian market. Where on the other side, B2B commerce is limited to organisations that drive online sales while trying to cut costs in dealing with their partners and distributors.
Gene Alvarez, managing vice president at Gartner said, “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, but 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.”
According to the report, it’s imperative for Indian digital commerce players to focus on the following 5 factors to sustain and drive the growth: