Fueling India’s Ecommerce Growth
Over the last decade, the ecommerce industry has been the poster child of growth, innovation, and opportunity in India. Just when we thought that the rapid trajectory for the industry was behind us, the pandemic strapped it with rocket engines. Facebook’s consumer studies with Boston Consulting Group told us that ecommerce adoption had accelerated by two-three years within just weeks of the first lockdown last year.
Over the last year, as businesses swiftly moved online to reach their customers, social media proved to be a pivotal bridge between people and businesses by aiding the discovery of brands and products.
The next phase of growth for ecommerce in India will be powered by discovery commerce, innovations, and rapid digital adoption across smaller towns.
Discovery Commerce’s Push To Ecommerce
The important role of discovery in our shopping journeys has now moved from offline store browsing to social media interactions, and businesses are building inspiration as a core part of their digital consumer engagement.
As the primary engine of discovery in the virtual world, social media is an essential link in the path to purchase. A Facebook-commissioned online survey showed that 96 per cent of the surveyed people said that they discover brands and products online. Furthermore, 96 per cent of weekly users who discover apparel, beauty, furniture or consumer electronics on the Facebook apps ultimately make a purchase, said the survey.
New brands and ideas are constantly being ‘discovered’ on the net, and many of them have been born successfully on digital. How can marketers, especially for innovations, leverage this and get their offerings to be ‘discovered’? And then build on that discovery to engage and get transactions and commerce going? There are no more constraints; marketers can target and reach the right audiences, and with a strong business model; create these as digital-first brands within their companies as an ‘intrapreneur’.
With the Indian e-retail market projected to grow to 300-350 million shoppers in the next five years, businesses must rethink how they want to build on these consumer shifts to aid the discovery of their brands and products.
Innovations In The Offline To Online Journeys
Some of the largest offline retail networks have felt the urgent need to move online. This has prompted a host of innovations like BOPIS (Buy Online, Pick-up In-Store), to make their shift to online quick and seamless. There are businesses in the watches and jewellery segments that have adopted BOPIS and are seeing traction from consumers who are comfortable shopping this way. Product launches are now leveraging disruptive technologies such as augmented reality. Many brands are upskilling their offline retailers to establish an online presence through social media platforms, and reach out to their local customers through hyperlocal targeting.
Another interesting trend that has emerged is that of offline brands working with established ecommerce platforms to build transactions on the net. For instance, we’ve seen increased adoption of Facebook’s revolutionary ad product, ‘Collaborative Ads’ that links products retailed through traditional channels to an online retail platform. Leading FMCG businesses have leveraged ‘Collaborative Ads’ by showcasing their products and offers through Facebook ads and directing the interested consumers to a third-party ecommerce platform to complete the transaction.
Such collaborations and innovations are likely to increase in the coming years, creating more commerce opportunities.
Spending On Big Sale Days & Online Festive Shopping To Increase
With consumers increasingly shopping from home, big ‘Sales Days’ have gained even more importance. Last year during the festive season, leading ecommerce players raked in Rs 22,000 crore during the first four days of the big sales events, as per public reports. Nearly 35 per cent of the ecommerce GMV comes during 40 odd days of big sale days.
Online festive shopping will continue to gain momentum as online channels lead with the ‘discovery’ of brands and offers. A Facebook commissioned survey by YouGov showed that social media influences a majority of the festive shopping decisions made by Gen-Z and Millennials. It also found that more than half of the purchases in key festive spending on fashion and tech devices are now influenced by what consumers see on their smartphones.
Digital Adoption Beyond Metros A recent IAMAI-Kantar report found that digital adoption continues to be propelled by rural India, clocking 13 per cent growth over the past year. Tier II and Tier III towns have become driving forces for new users for brands and ecommerce websites. Brands or platforms are now focusing more on last-mile connectivity, vernacular content, and hyperlocal strategies to reach consumers beyond the metros.
According to the Facebook commissioned study by YouGov, 68 per cent of festive shoppers prefer to see advertising in the local language.
Structural Shifts Facebook’s study with Boston Consulting Group also told us that consumer shifts that we are witnessing right now are structural. Of the new online shoppers, 80-90 per cent are likely to continue even after the pandemic. This implies that the trend towards online shopping is only going to increase in prominence. With millions of Indians poised to join the digital economy, brands will have to continue to create exceptional consumer experiences online to build discovery, capture consumer imagination, and build a seamless path-to-purchase.
The author is Arun Srinivas, Director & Head - Global Business Group, Facebook India
