The future of online retailing in India: Rohit Dhingra, TAGG
Guest Column: Rohit Dhingra, Co-Founder & CEO of TAGG believes that the current business environment in India has the potential to enhance the growth of the online retail sector
Published - 18-March-2019
Owing to the rapid technological advancements, the online retailing industry in India has emerged to become one of the most dynamic and fast-growing industries. Factors such as deeper penetration of the internet, increase in smartphone usage and online payments are contributing well towards the growth of the online retail. According to a report by e-Marketer, the e-commerce industry in India has grown more than 3 times since 2015, and by 2022, the same will be worth 71.94 billion dollars.
The current business environment in India has the potential to enhance the growth of the online retail sector. One of the key factors that can fuel its growth is the increase in the number of Internet and smartphone users. According to a recent report of IAMAI, India will have 500 million users internet users by the end of this year. Also, India is one of the booming markets which is observing the rapid growth of smartphone customers. The convenient availability of affordable smartphones will further enhance the e-retailing opportunities in India in the near future.
The rise in transactions through net banking, debit cards, and credit cards is another factor which is augmenting the growth of online retailing. With net-banking and credit/debit cards simplifying the transaction process and the emergence of secure transaction methods like One Time Passwords (OTPs) and secure payment gateways, consumers are preferring to shop online.
Even though the Indian online retailing market has enormous growth prospects, there are a lot of hurdles for e-retailers in the country. Effective logistics play a crucial role in defining the working success of e-retailers as on-time delivery and other priority services are the biggest challenges for online retailers. Also, the cost of logistics in India is high due to the lack of adequate infrastructure along with another significant disadvantage that is the limited technology reserves and developments in the Indian logistics sector. If we observe the other developed countries, there are significantly huge investments carried out in such technologies as Global Positioning System (GPS) to improve the tracking of delivery and shipment of customer orders. Another big difficulty that the sector is facing today is the slow speed internet connectivity which again can have a huge effect on the evolving prospects of online retail in the long run.
Overall, the future of the Indian online retail sector looks bright. The pace at which online retail is growing, it can make a significant contribution to the consolidated retail industry and the economy of our country. The growth of this sector can be boosted enormously, provided we overcome the challenges related to the infrastructure, policy framework and operational environment of our country.
(The author Rohit Dhingra is the Co-Founder & CEO of TAGG, a consumer electronics brand)
Disclaimer: The views expressed here are solely those of the author and do not in any way represent the views of exchange4media.com