In India’s digital journey, the biggest game-changer has been networking. “Don’t think you can change the world alone; you need people. Facebook is a great example of such collaboration,” says Amarjit Singh Batra, CEO of used-goods marketplace OLX. Social platforms and messaging apps that impacted people behaviour brought both good and bad news. “But growth journeys always have ups and downs. You have to navigate through these to reach the peak, and India will find its way there,” says Batra.
Sharper FocusA pertinent problem with e-commerce platforms, especially with horizontal e-commerce brands, is that people are unable to distinguish between brands. It is therefore the responsibility of e-commerce players to educate and build awareness as the industry is still at a nascent stage.
A fallout of an immature market is the ‘land grab’ tendency. Diversification that is not market driven can be a challenge. “Some players diversify too early; they feel they won't grow if they don’t. It may not be wise for Indian companies to do so if they haven't yet made a mark; it is essential that they keep the focus on the core offer,” cautions Batra.
The e-commerce business is offer sensitive, which makes loyalty a challenge. Attributing this to the business model in India, e-commerce players’ response to competition has also created a certain lack in differentiation. The choice between specialising and going horizontal is another area that offers opportunities. Since horizontal allows multiple options to consumers, it is easier for brands to bring more people to the site. Horizontal players can also begin a vertical more easily. The clear drawback, however, is the difficulty in building a positioning.
Growth DriversVertical businesses help in building a strong positioning in the minds of consumers as they provide more variety, and personalised and customised experiences to customers. However, verticals will have fewer buyers and at times need a horizontal platform to survive. For companies such as OLX that are here for the long haul, the game plan is to make the proposition work. “Sometimes e-commerce players give up too early. It is important to keep on hitting at the problem from various angles. At OLX, we have said, we will make it work, and that is what we do,” says Batra.
Despite the negative sentiments in the industry at present, there is a significant headroom to grow in India. “Don’t be disheartened that everything is over. It is a great time to enter the e-commerce business in India. The business will evolve constantly and newer players will bring disruption, keeping the rest of us on our toes. But when is that bad for any industry or consumers,” he exclaims.
noor.warsia@digitalmarket.asia
