Ecommerce has become one of the undisputed mainstays of the Indian economy — the sector is poised to grow at a 41% CAGR over FY’15-’18, according to a recent Goldman Sachs report.
We foresee that within a decade, India’s consumption GDP will be $2.5 trillion, of which, 10% will be online, and ecommerce will play a definitive role in addressing this $250 billion consumption gap.
Starting in 2016, the Indian ecommerce sector will need to recalibrate its focus on a long-term vision to ensure consumer delight, business scalability through reliability, frictionlessness and profitability.
Businesses will have to bring in innovative, consumer-centric solutions to provide an enhanced experience for all stakeholders. Four key areas should be brought to attention in order to create the most impactful digital commerce ecosystem — digital payments, O2O & omnichannel, vernacular interfaces, and predictive analysis.
Four key areas command special attention — digital payments, omnichannel, vernacular interfaces and predictive analysis.
Digital payments create value-added transaction experiences
From card on delivery to the greater adoption of digital wallets, payment methods have become an active playground for ecommerce players to ensure value added transaction experiences.
Focusing on improving customer experience, 2016 will see a slew of more efficient digital payments solutions. This will come to impact the financial supply chain and refunds mechanism.
Banks are already assisting in building this through IMPS transactions that allow bulk refunds to be processed more quickly, even allowing refunds under an hour in certain cases.
In 2016, faster cash transaction solutions will be developed for consumers and merchants alike. For instance, banks can collaborate with ecommerce logistics partners to strengthen the financial supply chain. This will allow faster collection and entry of cash in the banking system as well as efficient technology integration for its early disbursal to marketplaces, and thereby to the seller community.
At the same time, forecasts suggest that the mobile wallet market in India is expected to reach $6.6 billion by 2020, indicating the greater adoption of wallets as a simplified and secure digital payment option.
With various payment solutions such as Host Card Emulation (HCE), Near Field Communication (NFC), Bluetooth Low Energy (BLE) and Quick Response (QR) code, digital wallets have already created value through single touch and secure payment solutions, cash back deals, among others.
O2O and omni-channels foster integrated commerce experiences
Recognizing value in vernacular interfaces
Innovation will ride on simplification and predictability
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