The ecommerce industry, both in India and across the world, has witnessed exponential growth since the pandemic, with the rapid adoption and acceptance of digitisation across all segments
According to recent studies, the ecommerce industry is expected to grow to a $6 Tn industry by the end of 2026 from a $3.3 Tn industry now
To remain competitive and identify new opportunities, the ecommerce industry must constantly evolve while staying in sync with the latest emerging industry trends
To remain competitive and identify new opportunities, the ecommerce industry must constantly evolve while staying in sync with the latest emerging industry trends
The ecommerce industry, both in India and across the world, has witnessed exponential growth since the pandemic, with the rapid adoption and acceptance of digitisation across all segments. The global ecommerce industry has grown faster in the last two years than it has in the previous two decades!
According to recent studies, the ecommerce industry is expected to grow to a $6 Tn industry by the end of 2026 from a $3.3 Tn industry now.
This unprecedented and tremendous growth can be attributed to a dire need born of necessity. Now that consumers have resumed in-person shopping following the pandemic, the question is whether the Covid-driven surge in ecommerce was a one-time event. Is the ecommerce industry capable of maintaining this rate of growth in the future?
The Shift In Consumer Habits
The pandemic has changed the way a consumer interacts with or engages in online shopping, which has grown in both complexity and scope. However, we can confidently state that today’s ideal consumer is more educated and has a clear idea of what they want to buy, with more mediums/channels, exposure/product discoverability, convenience, and personalised experiences available to them.
Consumers are more than willing to make purchases from new channels or new brands that may resonate with them due to a variety of factors such as increased convenience, company/brand value, sustainability, or brand image/presence, among other positive factors influencing their decision-making.
Ecommerce Trends: What’s in Vogue?
To remain competitive and identify new opportunities, the ecommerce industry must constantly evolve while staying in sync with the latest emerging industry trends. Some of the trends we anticipate in this sector in the coming year include:
- E-tailers prioritising user experience and convenience above all
- Increased adoption of Artificial Intelligence (AI)
- Machine Learning (ML)
- Augmented Reality and Virtual Reality (AR-VR)
- Metaverse and web3-based technologies to improve ecommerce user experiences
- The continued growth of social commerce
- Increased adoption of an omnichannel approach
While some of these trends have already been seen to some extent in recent years, they may become stronger, and more widespread in 2023. However, one of the most significant ecosystem trends we anticipate in this space is the rise of the hybrid model of commerce, which includes and emphasises both offline and online/digital commerce.
Understanding The ‘Hybrid’ Model Of Commerce
Customers who were forced to make online purchases due to the pandemic are now returning to their preferred offline modes. However, since they have already reaped the benefits of vast product discoverability, easy and lucrative pricing access, and the ability to window-shop from anywhere, they are now stuck in limbo. Consumers’ new expectations cannot be fully met or delivered by offline or online modes of commerce.
This is where the ‘Hybrid Commerce’ model comes in as a game changer; it can be dubbed as the right technology-enabled marketplace model for today’s rapidly evolving consumer habit landscape. In short, hybrid commerce is essentially a marriage or convergence of the offline and online shopping experiences, allowing the end-user to enjoy the best of both worlds without having to compromise on any benefits offered exclusively by either end. It is worth noting that the hybrid model of commerce, which places technology at its heart, subtly serves the needs and benefits all stakeholders in the ecosystem, namely the buyer, seller, and e-marketplace brands.
Shifting Priorities: What’s Next?
Much has been said recently about democratising ecommerce and creating a welcoming ecosystem and level playing field for local retailers to compete with ecommerce behemoths. The coexistence of online and offline forms of commerce is unquestionably necessary.
Given that a neighbourhood store typically has limited visibility and that more than half of the Indian population owns a smartphone, it is high time that SMBs and traditional retailers adopt and ride the modernisation and digitisation wave to optimise their physical stores. With a modernised customer experience and an attempt to bridge the gap between offline and online, this would breathe new life into the offline retail experience.
In fact, every retailer today requires a way to connect with potential customers in their area, as well as target those in their area who are already shopping online, as well as those who are beginning to shift to online shopping or ecommerce. This is where a retailer benefits from using a hybrid model, as it allows them to generate additional leads and incremental revenue without disrupting overall storefront operations.
By 2023, ‘hybrid commerce’ is expected to usher in a paradigm shift, marking an exciting time for all the players in the ecommerce or new-age commerce ecosystem.
