Emerging markets are the best place to be. Get in early and get in good. Securing a foothold in an emerging market is the goal of all businesses, and online commerce is no exception. With all eyes on the online markets, it becomes a game of prediction, of pinpointing which locations are poised for immense growth and then taking advantage of that opportunity.
Wagento is with Magento in India.
India’s Emerging e-Commerce Market
Why India? What changes are on the horizon for a country where just 2% of the retail happens online? Well, there’s a lot poised to happen in India right now that makes it the perfect climate for emerging e-commerce networks.
An increase in online shoppers
All kinds of people shop online, but people who have had consistent internet for five years or more are the most likely to enjoy shopping over the internet. In 2016, there were only an estimated 60 million of these “matured” online shoppers in India. By 2026, that number is likely to skyrocket to nearly 500 million due to the increasing online infrastructure within India. Online speeds are also scheduled to pick up in India over the next decade. There is no better time or reason to build your Magento site in India. Make in India!
Lower data costs
Data costs and internet access is becoming cheaper in India, opening up online commerce to people who in the past may never have thought it affordable. Costs have been lowering since 2013 for various reasons, including an increase in smartphone purchases. Magento additional functionality for B2B and even texting from the application makes this the best choice for India.
Changes in the credit flow
It’s no secret that India’s economy has suffered some hits in the last decade or so, leaving many small companies unable to access credit from traditional sources, like public banks. However, debt finance companies and private banks have begun to pick up the slack. This increased access to credit for consumers and smaller businesses is a healthy kickstart to an online retail environment.
An interest in the market
Sometimes large, successful companies can act like canaries in a coal mine for the rest of us. Both Amazon and its Chinese rival, Alibaba, have been showing a lot of interest in India lately, proving that they’re reading the signs of what is to come. And if companies as large as Amazon and Alibaba come into the picture, they will do everything in their power to make sure they are successful. So we can take their interest in India as a promise that they will be expending vast efforts to make sure India’s predicted place as a leading e-Commerce country becomes a reality. It is now completely normal to order Amazon Prime in India. Why not order off your new Magento site?
What will this growth look like?
So what will a post-boom e-Commerce economy in India look like? Amazon already has a presence in India through Amazon.in, which currently only lists about 160 million products, a fraction of the 400 million listed in the United States. However the increase in access to credit will likely prompt more Indian businesses to take advantage of the Amazon marketplace. Chinese retail giant Alibaba is also on track to invest bigtime in India. Alibaba has already purchased shares of e-Commerce platforms and online wallets, showing the company is poised to make a mark in the emerging Indian market.
So while at the moment, Amazon holds the number 2 spot on India’s top online retailers, the coming years will probably see a battle for dominance as Alibaba tries to extend their reach further outside of China and Indian companies like Ajio continue to grow.
What products are expected to do well?
If the most important part of commercial success is getting into the marketplace early, the second most important aspect is having the right product on offer. Currently smartphones, other electronics, and apparel are the clear leaders in the Indian online market. So those sectors are naturally expected to continue to grow. However, emerging products in the Indian online shopping world are expected to do equally as well if not better. These include cosmetics and furniture as well as the ever-more-popular food delivery services taking hold elsewhere in the world.
The Boston Consulting Group also predicts a rise in weight management products as well as domestic goods like baby products and toys.
What does this all mean?
India is poised to become a huge online marketforce. Soon we’ll be looking at India’s internet and seeing a $200 billion industry. So where does this leave everyone right now? Well, it means that analytics into the Indian marketplace are a smart buy right now. Expect retailers to expand their Indian divisions. Product influence is likely to follow suit as well while Indian markets begin to make a bigger influence on international product development. Start marketing and producing with an Indian market in mind, because starting in the near future, a solid presence in India may be what makes or breaks a company.
Wagento has a BRAND NEW Office in Ahmedabad, India! We invite you to stop by and have a chat with a Magento 2 Solution specialist (We have two)
Opp Kensville Golf Academy,
Nr. S. K. Farm,
Rajpath club to Bopal Ring Road
Bodakdev, Ahmedabad, Gujarat, 380054