India is a country with a lot of potential in almost every market. There is a lot of consumer base which is still unexplored. The market that has been explored as of now has been only the tip of the iceberg and the companies have already earned a fortune. There is still a huge part of India that is unaware of the technological advancements and there is still the reach that has been hampered due to some of the infrastructural problems.
The e-commerce is also something that is out there till the tier 4 cities. However, companies like Flipkart and Amazon are not able to reach the rural areas as the availability of the internet is the biggest problem. Then people need to be aware of Amazon and Flipkart. They need to know how to order and the education of it is the next big problem. That said, even though India’s majority part is rural, about 68.84% comes under the rural population. This is where the real potential of India is.
Deloitte India and Retailers Association of India (RAI) jointly presented a report which marked some great insights. The report tells about the market and its expansion in the upcoming years. There was one such report in 2017 which was presented by Indian Brand Equity Foundation (IBEF). They expected the e-commerce market in India to reach $200 billion by the then rate till 2026. However, the market has reached $200 billion in 2019. This has been a humongous jump for the Indian market.
However, despite the losses incurred by Amazon India and Walmart-owned Flipkart because of the newly announced FDI policy, the picture RAI and Deloitte India have painted is promising. They have predicted that the current Indian market of $200 billion will reach a value of $1.2 trillion in India. This is huge but these numbers are mere speculation based on the current run rate of the companies. It will take a lot of efforts for that market to expand to that kind of value.
However, there still are a lot of companies in this market and the majority players like Amazon India and Flipkart have covered a lot of the market. That said, there is another giant entering this business come April. Reliance has decided to enter the market with their own e-commerce website and that is the reason this inflation in the market value could be seen.
The report also said that 28% millennials buy online while 68% of them stay updated about the same through social media. At this moment the Indian market’s CAGR is growing at 32% and at this rate, it is a playground for the companies entering this market. It will only be up for the companies in this marketplace only and only if you offer a right balance of quality and quantity.