Ecommerce In India: Not A Zero-sum Game
Ecommerce in India has achieved an astonishing level of growth, demonstrating the outstanding leadership and resilience of major players like Amazon India and Flipkart. The enthusiastic embrace of digital platforms, the diverse array of products on offer and the evolving preferences of consumers ‒ from small towns to mega metropolises ‒ have been among the myriad factors that have driven this persistent expansion. This remarkable digital journey of the Indian marketplace is truly a cause for celebration.
Our cover story in this issue tells the story of one of the country’s largest tech and ecommerce players, Amazon India. With over 100,000 employees, Amazon stands out as a mega employer in the private sector. It is committed to digitising 10 million small businesses, facilitating $20 billion in ecommerce exports and generating two million direct and indirect jobs through the country. Manish Tiwary, Vice President and Country Manager of Amazon India's consumer business, tells us that Amazon has already made significant strides towards these goals, having digitised over 6.2 million small businesses, enabled cumulative exports worth $8 billion, and created over 1.3 million direct and indirect jobs in India.
He emphasises that Amazon's focus on customer-centric innovation continues, particularly in catering to the needs of approximately 80 per cent of new customers hailing from the smaller towns. The company is dedicated to enhancing shopping experiences, delivery speeds, and overall fulfilment for this demographic, aligning with the diverse preferences of India's next 500 million consumers. Amazon’s journey is reflective of the sector itself. As we watch India’s ecommerce sector evolve and mature, we can't help but applaud the numerous opportunities and challenges it presents to both businesses and consumers. This dynamic space is set to captivate our attention in the years to come.
Market research experts at Redseer give us yet another cause for celebration. They predict a substantial upswing in festive season sales this year, with a potential to surge by 20 per cent, to a staggering Rs 90,000 crore. Improved profit margins from larger purchases and a jump in brand advertising expenditure are expected to spur this explosion in festive purchases, which would indeed, be worth rejoicing after the tepid growth in ecommerce for several quarters.
This festive season we can expect gross merchandise value (GMV) to soar beyond Rs 5 lakh crore. The Indian ecommerce landscape has witnessed a truly remarkable surge. The number of annual transacting users has skyrocketed 15-fold to reach 230 million this year, and we eagerly anticipate a minimum of 140 million online shoppers during the festive season ahead. Our cover feature documents these remarkable milestones in the journey of India's ecommerce industry.
Of course, we also bring to you all our regular features and columns. Happy reading!
