E-Commerce success in India: Factors & Insights

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E-Commerce success in India: Factors & Insights

ecommerce success India

An organization’s ability to learn fast, unlearn faster, and relearn fastest is the ultimate competitive advantage.

The advent of digital media, particularly social, has given birth to not just another channel or modus-operandi but to humongous insights slithering to be adopted and tested. It’s not uncommon to witness horde of e-commerce companies designing strategies around the digital media. And, one market which has become a cauldron of e-commerce companies is India. From regional minnows to international heavyweights, the market has become a beehive buzzing with strategic decisions and tactical plans. A large market size (1.2+ Billion Population), young and aspirational consumer base, ever increasing digital revolution, and adoption of new age technology are some of the factors adding to this line-up.

[panel text="The evolving online consumer landscape is driven by a northward shift in education, age, income, economic scenario, and technology."]

ecommerce Indian Consumers

In a recent research report titled “Retail in Emerging Market” by KPMG, the firm has uniquely identified the new age customer segments and their characteristics.  Youth, undoubtedly is one of the key segment driving the growth of e-commerce companies.

[panel text=”This segment has high aspirational values and is driven by word-of-mouth from influencers.“]

Factors driving experimentation in youth

Next customer segment in line of sight is the aspirers at the “Bottom of Pyramid”. These Low Income Value Explorers, L.I.V.E, are driven by value for money in every purchase they make. All thanks to the media & technology penetration, this is one segment which is exposed to brands much more than they ever used to.

[panel text=”A customized offering creating pull factor is the magic potion to reach out to this segment than adopting a push model.“]

ecommerce for bottom of pyramid

Another customer segment which holds lots of promise and is capable of giving e-commerce companies a dream run is of emerging affluent consumers.

[panel text =”This is segment with digital DNA and adapt any new technology as soon as it gets launched.“]

emerging affluent customers

The next segment which can’t be missed to be a part of the blog is “The Online Consumer”. This is one segment which is uniformly present across the landscape, with different preferences and values.

Typically urban and above-average in affluence, India’s digital shopper isn’t regarding e-commerce as just an alternative channel ~ Nielsen Insights 2012

5 Popular CategoryeCommerce intentions Important reasons for shopping

Key Issues

The next customer segments which we aren’t covering in this blog is the “Value Conscious Customer” and “Rurban Customer”. We’ll try to come back with the next blog ASAP and cover the traits of other remaining segments. However, you can get the research report either from the KPMG’s website or contact us from here to receive it in your inbox.

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Looking for consulting around your ecommerce business? Just drop us a mail at contact@366pi.com and allow us to deliver our e-commerce experience and capability at your doorstep.

Reach the author: The author of the blog could be contacted at Linked-In or reached at sushant@366pi.com.

By |2018-01-25T04:28:55+00:00April 15th, 2014|Blog, Functional Practices, Services, Small, Medium, Emerging Businesses, SME and Startup|0 Comments

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About the Author:

I am an Entrepreneur by passion, Management Consultant by profession, Business Adviser by skill, and a Mentor by choice. I am a Management (MBA) grad and worked larger part of my career as an Independent Consultant with clients across the globe. As a Consultant my role has always been to plan and execute strategic business initiatives for companies looking to surpass the threshold at an inflection point. My focus primarily spread across following areas: Business Planning, Strategic Planning, Market Strategy, and Product Management. I have helped vast pool of clients with business investment activity and none of my business plans have ever failed to raise an investment. My Investment raising experience range from US$ 2 million to US$ 80 million. As a Business Adviser I've worked on few niche areas like Blue Ocean Strategy, Business Model Integration, Social Media Planning, Business Launch Strategy, Brand Planning, and Integrated Market Planning. I have always been an active member and knowledge contributor on Social Media and you can find my notes on relevant LinkedIn groups, open platform like Quora, in 140 characters on Twitter, and Company and SkyPiCast community page on Facebook. I am a voracious reader, silent speaker, loud writer, and an avid listener. You can easily find me writing too many blogs on my business' website. I appreciate creativity and innovation with lead by example attitude. As an Independent Consultant I always wanted to create success stories which I could share with people as my own. Hence, I Co-Founded a consulting business and top it up with a Tech venture. I am equally optimistic about continuing my success stories under the name of 366Pi group of companies. I trust I will be able to contribute to my clients' success as I always used to and look forward to networking and talking with fellow members.