Ever thought that E-Commerce could be an emerging platform for generating a humungous amount of revenue and sales and also contribute largely to economic growth.
Simply putting on paper, E-Commerce is the new and advanced technology for easy and timely transactions. E-Commerce is defined as the purchase and sales of goods and services electronically and digitally through the internet. It was first introduced in the 1960’s through an electronic data interchange (EDI) on value-added networks (VANs). This was considered one of the mediums that experienced colossal growth and had a powerful impact on the lives of people.
Technologically World Wide Web (WWW) is used for conducting a variety of transactions. Also, goods and services are procured and delivered over the internet with a touch of a button. Easy accessibility for all and convenient payment options with a lot of schemes, made E-Commerce – push the boundaries of business and make it more successful in India.
E-Commerce subsumes all the categories of shopping of many industries like the fashion industry, food, electronics, interiors, home décor and sales and purchase of goods and services. Now fashion is something that you get-at-table with the advent of E-Commerce but it resists the consumer to touch and feel the quality of products.
Graphs and statistics of business through E-Commerce has reached greater heights. As the data states that $7-9 billion of the $70 billion of India’s fashion is digitally influenced. The digital market is driven by the constant usage of mobile phones and conducting online transactions. The ‘Digital India‘ campaign is promoting the use of the internet for fulfilling basic and other needs.
The rapid growth of E-Commerce in India (5%), China (20%) and the US (12%), makes them the leading countries in online retail penetration. Along With Alibaba and Tencent, two Asian leading systems, India has also witnessed the growth of retail online platforms like Reliance, Flipkart, Amazon, Myntra, Snapdeal, etc.
Amazon has been the leading online store in India in 2017 and total online retail sales accounts for 20.06 billion USD in 2017 which means that there has been an increase of 24.8 %. It is further expected to grow to 52.3 billion USD with 130.4 million digital buyers in India.
According to the Google India Research, the Indian retail market will generate $100 billion online revenue out of which $35 billion would be generated through fashion E-Commerce by 2021. On accounting at the global level, in 2017 E-Commerce sales were estimated to 2.3 trillion USD, and revenues are expected to grow to 4.88 trillion USD by 2021. Global sales have experienced 18% of total digital growth in 2018. Believing in the statistical data, in the next 5 years E-Commerce would be estimating new and large numbers for their sales and revenue due to the contemporary choice of clicking the buttons digitally.
According to statistics, India is being digitally transformed and thus it is expected that India’s total internet user base will increase up to 829 million users by 2021. Even though the E-Commerce market has been captured majorly by the bigger fishes like Amazon, Flipkart, Jabong etc., yet due to them a new breed of smaller businesses are able to gain access to larger markets.
With wider access to internet and awareness about fashion, the people between the ages of 16 years – 34 years are regular visitors for buying fashion online. As the pattern is being seen, this age group is not brand royal and the same character gives opportunities to many small business to sell their products online playing majorly on the price factor.
Why Is There A Need Of Physical Stores Even After E-Commerce In India?
With the hike of E-Commerce in India, there is still need for physical stores in order to expand businesses. Smaller enterprises have climbed the success ladder quickly due to the enlargement of e-tailing. Catering to the Indian audience, fashion is not always experienced in screens rather is more appreciated when experienced on personal basis. Rising of E-Commerce and presence of stores are the two parallels, never meeting lines but distinctively reaching at the same destination and satisfying the consumer.
With E-Commerce becoming an integral part of the buying and selling pattern, I Knock Fashion is soon to come up with an E-Commerce Portal of its own.