Trends may change but the online retail market will retain its vibrancy for many more years. The market, which offers easy and unrestricted access to the global market, requires lesser investment than the brick and mortar stores. Also, it is easier for brands to advertise online as it can be targeted to a specific group of consumers.
Many brands prefer to sell their products online rather than setting up offline stores. Infact, in 2020 there be a record number of brands who will set up their first offline stores despite being in business since long. These brands first like to explore the market through online sales before venturing offline. An increasingly sophisticated logistics network enables brands to supply their products to consumers across India. Deeper penetration of 4G networks and more smartphone users also spurs them to adopt an online first strategy.
Established brands focus more on online stores
For consumers, buying products online is just more convenient, but also affordable as it eliminates the need for middlemen. This enables the brands to sell their products directly to the end users at a lower cost. The sophisticated supply chains run on cutting edge software platforms ensure quick delivery and easy returns when requested.
As of now, only metro-based giant market places are able to deliver their products in one or two days. However, in future, advanced logistics will enable even small retailers to promise to shorter deliveries to their consumers.
More online brands are likely to succeed in 2020 as the infrastructure that supports their growth will continue to be more prevalent. Even logistics processes are likely to become more automated next year. This will allow e-retailers to concentrate on their core competency. Also, an online brand does not have to manage inventory or worry about loading and unloading of products. This enables them to concentrate on creating higher brand equity than others.
Operational efficiencies attract brands online
Other important factor likely to fuel the growth of e-commerce players in India is the ease with which a new ecommerce website can be created. Until recently, brands needed to have technical expertise to develop an attractive online portal. Now it can be created with the few clicks. Other important activities including managing an e-commerce website and order fulfillment, inventory management, returns management etc can also be performed easily. Selling their products on their online stores also allows brands to interact closely with customers. These are some of the reasons why a majority of sellers prefer selling their products on their online stores.
Behavioural changes among consumers and new technologies also make e-retailing easy, creating an immense scope for its market growth. Many well-known brands in India do not have any offline store yet command a loyal following from niche and in some cases, broad segments of consumers. The cost benefits that it offers along with its nationwide reach are some of the other reasons that will enable the sector to grow in 2020.