How crucial is online presence in today’s market space
According to a report from Statista, close to 329.1 million people are projected to buy goods and services online in India by 2020
Ankit Gupta | New Delhi | January 24, 2019 11:26 am
In the digital age, the Internet has completely altered the way of doing business. As people are inclining more towards digital technology, it has become exceedingly significant for the business organizations to mark their online presence. According to Statista, there are more than 4.2 billion internet users worldwide as of October 2018 and with over 460 million internet user India is the second largest online market in the world only behind to China; this number is further expected to grow to 635.8 million users by 2021.
Internet shopping is a phenomenon which has grown considerably in recent times as consumers are also looking for web services which comprises of web development, mobile apps ,multimedia designing , web hosting to name a few. A glance into the exponential growth of industry suggests there is still a huge reservoir of market potential for e-commerce. The convenience of online shopping has tendered it as an emerging trend among consumers, particularly the Gen Y. The pervasiveness of online shopping has raised the attention of business organizations to focus on this area as people are shopping both products and services including experiences online. Indian E-Commerce space has grown exponentially well over the years.
According to a report from Statista, close to 329.1 million people are projected to buy goods and services online in India by 2020; which means that about 70.7 percent of internet users in India will have purchased products online by that time. The report further forecasts retail e-commerce sales in India to grow tremendously, with projections to jump from around 16 billion U.S. dollars in 2016 to over 45 billion U.S. dollars in 2021.
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Whereas another report from Statista states that in India, total transaction values in the digital payments were 50,215 Million U.S. Dollars and it is expected to grow at a CAGR of 19.6% in forthcoming years resulting to a total amount of 127,235 million U.S. dollars by 2023.
Factors affecting Online Market
Customers Approach: While there are numerous factors which influence and affect customers in making the purchasing decision; but the purchasing decision process starts long before the actual purchase. Usually, consumers search about the product and then independent factors including price, availability of the product, convenience, brand, refund policy, and promotion affects the client decision; as ease of buying plays the vital role while buying online.
Let’s take the example of Amazon; when incepted, Amazon used to sell only books at their platform and within a month of their inception they shipped over 40 million books. Since then Amazon has grown at an unprecedented rate and it is one of the world’s biggest e-commerce company. There are many things which Amazon has done right with their online business model including user-friendly interface, easy access to mobile devices, and convenient return policies etcetera. This reflects at the consumers’ preference to convenience when buying online.
Use of Smartphones: it is high time to recognize the significance of mobile marketing from a business perspective. It has become a modern necessity for every business to have a noteworthy mobile presence in the market. People prefer to use smartphones rather than using PCs due to their accessibility and convenience. Mobile marketing unlocks the pool of vast opportunities for business on a huge scale. Unlike any other digital device, smartphones allow business to a wide range of audience in a personalized manner.
The increasing use of the smartphones also reflects upon the numbers as according to Statista, mobile retail e-commerce sales in India amounted to 6.02 billion U.S. dollars in 2015 and these numbers are projected to reach 37.96 billion U.S. dollars in 2020.
Benefits of Online Presence of the business
Increase the availability to Potential Customers: In the times when a Google search simply provides all the information, customers don’t put many efforts looking for a product or company. If someone needs any information about a product or a company then they’re most likely to search it online. With so many options available it has become highly important for the business organizations to have an online presence will provide them with a competitive edge.
Make it Easier to Showcase the Products and Services: The Internet provides the business organizations a cost-effective platform to showcase their products and services. It has become very effortless to let the world know what you have to offer. With just a few simple clicks, your customers can see what you have to offer and they can even do this anywhere, anytime.
Build Relationships with the Customers: Customers can interact with the business organizations on a more personal level; it provides the business organizations an opportunity to know their customers. Online presence makes it easier for business organizations to communicate with their target audience as it the most effective ways to build relationships with customers.
Real-time Results and Higher Revenues: With an online presence it is easier for a business organization to calculate the revenues. With a greater reach, low costs, and more leads any business organization can reap the utmost benefits and generate higher revenues. It can also view real-time results of the number of visitors, conversions, downloads, leads, and sales with just one click.
Modern business organizations must ensure that they are not left behind in the competition curve. An online presence has the most important investments that a business can make in the digital times. The benefits are endless!
In the festival season of October to December 2024, the Indian e-commerce is projected to reach $12 billion in gross merchandise value (GMV), marking a 23 per cent increase from last year when the GMV was $9.7 billion in the same period in 2023.
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