Before we get to a discussion on the present and future of eCommerce of India, we should look at the reasons as to why it is a sector that has the potential to be big in India.
First, the sector has grown because of the growth of the Internet in India. A decade ago, the user base was very thin. Now, with 100 million users on the Internet, there is critical mass. Also, in the interim, ticketing emerged as a big thing. Booking train tickets for many and flight tickets for some became their first introduction to the world of eCommerce. That is now extending to other sectors.
Second, in metros, there is the convenience. For many who are pressed for time, a few clicks is all it takes to order and have it delivered him. It saves a trip to the nearby mall where parking can be a challenge.
Third, in the smaller towns, there is the sheer variety available. Given the costs of retail stores and their limited expansion in India, the Internet stores are bridging the gap by making everything available to everyone across India. It is no surprise then that the majority of orders on eCommerce sites are now coming from non-metro locations.
Continued tomorrow.
