Indian e-commerce players should focus on customer experience, product range, delivery, payment and customer service at the moment to grow their business.  These are the top five focus areas for digital players, according to research firm Gartner.

“Digital commerce is at a nascent stage in India, and it accounts for less than 1 percent of total retail sales in 2015. However, India is one of the fastest-growing digital commerce markets in Asia/Pacific,” said Gene Alvarez, Managing vice- president at Gartner.

According to Alvarez, India represents a $7 billion market, growing at more than 40 per cent every year. Currently B2C commerce leads the market in India, while B2B is limited to organizations that drive online sales while trying to cut costs in dealing with their partners and distributors.

The Gartner study further says that mobile commerce is a primary channel for digital commerce in India. Over 40 percent of digital commerce transactions came from a mobile device in 2014, and it is likely to exceed 50 percent in 2015. Due to the low Internet penetration in India, the country is leapfrogging the PC, and consumers are using mobile as the primary channel for online shopping.

“There is a lot of hype due to the high growth and high expectation of the market, and many companies are fast expanding to grab market share and increase visibility. However, the fierce competition is pushing up costs while the average order value remains low. Players need to execute on the basics to ensure the growth is sustainable,” Alvarez added.

 

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