A recent study by Confederation of Indian Industry (CII) and Deloitte on the Indian ecommerce industry has revealed some interesting findings.
Titled 'e-Commerce in India: A Game Changer for the Economy', the study revealed that the expansion of the ecommerce industry in India would subsequently lead to an escalation in innovation in payments and delivery models. Along with this, it will also result in a better use of technologies such as drones, artificial intelligence and wearables.
Chandrajit Banerjee, CII's director general believes that the e-commerce industry has been having a direct impact on micro, small and medium businesses for quite some time now, along with a cascading effect on other industries.
According to the study, the increasing smartphones and Internet reach in the tier-II and tier-III cities will result in a massive expansion of e-commerce in these areas. Further, the study also throws light on the various factors that are currently acting as an hindrance to the growth of the e-commerce sector. According to it, unskilled manpower, logistics, taxation, payments and Internet penetration are some of the challenges which the sector needs to overcome.
E-commerce sector is acting as a great medium for connecting small merchants with customers all across the country, the study reveals. In fact, the expansion of the sector could have a significant impact on the economy of India as it would lead to an increase in growth of export revenue, employment, tax collection by exchequers and better products and services being dispensed to the customers.
For a good future of the e-commerce sector, there is an urgent need for a smooth relationship between the government, industry and academia. The same opinion is voiced by Viresh Oberoi co-chairman of CII's national committee on e-commerce. According to him, "Going forward, the most important thing is the collaboration between the government, industry and academia to improve efficiencies in e-commerce."
The report also highlighted the exponential increase in the number of online shoppers in the country. According to it, the number of online shoppers in India have risen by a massive 95 percent between the years 2013 and 2014. Further, this number is expected to cross 140 million mark by 2018 and 220 million mark by the year 2020.
From the investigation point of view, the funding in the sector has resulted in the birth of new business models across Business to Business (B2B), Business to Companies (B2C), payment wallets, digital advertising and logistics service providers etc. In addition to this, the funding has ensured that the sector makes use of all the latest, leading technology and related practices, so that their products and services reaches to millions of online customers all across the country.
The one thing that is clear from the report is, that India is surely going to witness great innovations and growth in the future, all thanks to the e-commerce sector.
[Top Image Credit - Shutterstock]
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