If there is one business that has clearly won during the unprecedented Covid19 pandemic, it is e-commerce. And this increase can be seen in all product categories and sectors. Because of this advantage, e-commerce will only gain traction in the next year. Particularly noteworthy will be the entry of a multitude of new players, both large and small, and democratizing the retail market. But this expanded and democratized e-commerce marketplace would coexist with stationary retail space. Clearly enough, these Kirana stores would enter into partnerships with online delivery services and be digitally upgraded with their help. In addition to the usual retail formats, there would therefore be more links to various brands on e-commerce platforms.
The Extraordinary Growth of E-commerce
According to a report, India’s e-commerce industry is set to grow 40 percent in 2020, compared to 23 percent in 2019. In fact, it has been reported elsewhere that it grew in just a decade during the months of Covid19, some months this Year. And in terms of cross-border growth, the country’s e-commerce sector ranks ninth in the world. Around the second half of the festival season, big players like Amazon, Flipkart, Myntra, and Snapdeal had $ 3.1 billion in revenue in the first 45 days of the Christmas sales, and that growth wasn’t limited to metropolitan areas. and the big cities. One online gamer reported that during Diwali, 70 percent of their orders were placed from Tier II and III cities. Once we see the last Covid19, which is expected in 2021, these numbers would get even more impressive. In fact, the country’s e-commerce penetration is expected to exceed 10 percent over the next five years from the current 45 percent.
New emerging players are intensifying competition
While Covid19 presented an enormous challenge for many small players in the early stages, some of these affected players soon turned this adversity into an opportunity by digitally upgrading and even redesigning their product portfolio. In the meantime, entrepreneurs have emerged who are referred to as “home entrepreneurs” and compete with the existing players. This will only get bigger and a more competitive retail market, both online and offline, will emerge over the next year.
Kirana stores are making the digital leap
While Covid19 posed a major challenge for many small gamers in the early stages, some of these affected gamers soon turned this adversity into an opportunity by digitally updating and even redesigning their product portfolio. In the meantime, entrepreneurs have emerged who are known as “local entrepreneurs” and compete with existing players. This will only get bigger and a more competitive retail market, both online and offline, will emerge over the next year.
Contactless delivery of ready-to-eat and packaged food for durability
During the Covid months, the trend towards partnerships between online delivery giants and consumer goods companies, including grocery brands, was a notable phenomenon. In addition, connections between local food companies and local e-commerce startups for end product delivery were equally notable. The explosive growth of cloud kitchens and food delivery applications, the almost institutionalization of the highly disinfected kitchen environment, the two-layer packaging of food, the use of delivery staff with comprehensive safety equipment and delivery services more permanent feature. The culture would even be seen for the delivery of packaged food to end users.
Shopping spend trends across all categories
According to market research, electronics and accessories (39 percent) have become the largest product category in terms of average online shopper spending, followed by mobile devices and accessories (12 percent). ); Fashion, including clothing, shoes and accessories (10%); and household appliances such as televisions, washing machines, refrigerators (9 percent) after the Covid outbreak. However, a report from the management consultancy found that groceries, groceries, consumer electronics and clothing will be the main e-commerce product categories that will add revenue in the next five years. Then, according to a Goldman Sachs report, online groceries and fashion / apparel will become the main drivers of incremental e-commerce growth in the country.
Orders and investments with an impact on the national e-commerce space
In recent months, overseas social media giants like Facebook have made significant investments in domestic giants like Reliance Industries, which could allow the latter to play a bigger role in the e-commerce market. Then the Reliance Future Group’s retail purchase was another significant development. . So while 2020 was a year of crisis-related immediate improvisations and restructuring in a generally moderate business environment, the coming year would bring further stability and consolidation of the electronic market space.
Conclusion
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