Year 2014 has been very promising in terms of new eCommerce companies getting established, companies getting huge investments from investors like Tiger Global, Soft Bank etc. Billion has become new million, when it comes to investment in this sector and e-commerce became one of the most sought after investment choice.
We, at Hoppingo, have listed some of the trends that are hitting eCommerce in 2015.
Do let us know if you think differently!
2. Introduction
Year 2014 has been very promising in terms of new eComm
erce companies getting established, companies getting huge i
nvestments from investors like Tiger Global, Soft Bank etc.
Billion has become new million, when it comes to investment in
this sector and e-commerce became one of the most sought after
investment choice.
We, at Hoppingo, have listed some of the trends that are hitting
e-commerce in 2015.
Do let us know if you think differently!
4. India has an internet user base of about 319 million.
India's eCommerce market was worth about
$3.8 billion in 2009, it went up to $12.6 billion
in 2013, is expected to touch $16 billion this
year, and about $100 billion by 2020.
Online shoppers are expected to cross 100
million mark by end of year 2016.
Until end of 2014, only 19.9% of Indian population
uses the internet.
7. #1 – Mobile, Mobile, Mobile!
• ‗App‘ is necessary to stay in the game. 7 out of 10 consumers will shop from mobile!
• Largest M-commerce player in India:
• Players gone/going app-only :
• Most used Indian apps :
• Key Driver : On-the-go accessibility, convenience and ease makes apps, whether it‘s an Android,
BlackBerry, iOS or Windows, a must in todays ecommerce. Mobile devices already account for
approximately 50% of traffic for all marketplaces, which was less than 10%, less than a year ago.
By the end of year 2015 we expect m-commerce to account for about 70-75% of the entire e-
commerce traffic.
8. #2 – The ―Wow‖ factor
• Not just the purchase but overall experience will become important. How the customer is
approached and kept informed at every stage even after the purchase is made.
• Key Driver : In India today, where the competition is fierce not only for small players but also for
established players, listing good products wont make much difference. Its about the wow factor that
the customer experiences while and after buying the product. This may be in the form of on-time or
before time delivery, updated shipping status by mail and sms, or early dispatch of products.
Customer today is aware of the many options they have and hence requires this wow factor to
settle for something.
9. #3 - Emphasis on Social Media
• Its not only about the websites anymore – Be Social! The brands today pouring in billions to
engage maximum people on various social media platforms to make them aware about their
services and increase the customer base.
• Facebook : Highest share of fans (6.5 million) with highest engagement.
• Twitter :
Highest Mentions Highest Followers
• Key Driver : ‗Stay Connected; Stay Relevant‘ is the mantra to success with mass online shoppers
via popular social media platforms like Facebook, YouTube etc. Product and service feedback via
social media channels have an impressionable effect on the minds of the larger customer base.
10. #4 - Experience Zones
• Its all about the customer convenience! Flipkart will be opening 20 Experience zone,
taking the number up to 100 by 2016.
• Players implementing
this concept:
• Key Driver : This facility will be of use when its courier riders are denied entries in IT
parks, gated communities, and educational institutions, which often leads to customer
dissatisfaction as the order is not delivered. This model is a resolution to customer
unavailability issues, as it offers consumers a choice to adjust the delivery time &
location according to their convenience.
11. #5 – Combining Content & Commerce
• Content will still be king! Recently, a survey of about 600 marketers out of which some 29.6
percent, or more than a quarter, said content marketing is the most important digital
marketing. Important marketing trends will be related to how ecommerce marketers use
content to boost sales or collect new leads with whom to share content.
• Key Driver : Content marketing is important for at least three reasons. First, content
marketing can often reach customers who are otherwise inundated with promotions and
ads. Second, content marketing is relatively easy to measure so that savvy marketers can
track engagement with content directly to sales. Third, content marketing has become vital
for attracting organic traffic from search engines.
12. #6 – Curated Ecommerce
• With more and more consumers spending time and money online, for social networking,
shopping, entertainment, and services, consumer behavior and usage patterns are likely to
become increasingly important to gauge. Users are moving away to curator shopping
experience.
• Key Driver : Personalized shopping is quickly becoming a major business strategy as more
consumers welcome curated retail options to escape the overwhelming number of choices
available to them. Curated retail ensures focused shopping and product relevancy. Curated
ecommerce is becoming recognized by both retailers and shoppers for its simplicity and
ability to help fill an online void.
13. #7 – AcquiHiring
• Ecommerce companies in India are on 'acquihiring' spree to gain best talent, ideas. The trend of
acquihiring — acquiring a company for its cutting-edge technology and hiring its employees for their
expertise — is catching up fast in India's hypercompetitive ecommerce sector.
• Major Players : Rival ecommerce majors Flipkart and Snapdeal are betting big on acquihire, to pick up
early-stage ideas along with entrepreneurs who could bring fresh energy and technology bandwidth to
their companies.
• Recent Acquihires by
major players include:
• Key Driver: There is a huge section of top young technology talent who have their own startups and who
would not be otherwise willing to give it up for a job with another bigger ecommerce player. It is this
section of tech mavericks that the large players are targeting. Mostly, they are in technology and e-
marketplace that can add to the business model of the big ecommerce companies.
14. #8 – Blurring Lines Between Online and Offline Commerce
• Online Brands moving Offline and vice-versa for continued growth. Rapid technology
adoption coupled with access to the Internet through broadband, 3G has lead to a
staggering rise in the online consumer base. India‘s ecommerce market is likely to have a
whopping 100-million customer base. To reach out to this consumer base, offline brands are
knocking the online space while online brands are moving offline causing the schism
between online and offline player to disappear.
• Major online player moving
towards offline presence:
• Key Driver : At the heart of this move lies the understanding that while value-seeking
consumers will be drawn online, experience-seeking shoppers will gravitate towards brick
and mortar outlets.
15. #9 – Online Grocery
• Online grocery will be hottest ecommerce growth vertical
• Major Players :
• Notable new entrants :
• Key Driver : Urban India‘s increasing shortage of time is fuelling the growth of online
grocery and by the end of 2015 we are expecting atleast 20 cities to be fully covered by e-
grocers.
16. #10 – Cash Back
• The Indian e-commerce market has found a new superhero — Cashback. Moving over
discounts, cashback is the hottest new trend in business. Big players, emerging players, almost
everybody in the e-commerce niche is embracing cashback culture, compelled by thick
audience demand, surging market competition and latest funding rounds.
• Cashback campaign In Indian
market is being championed by:
• Key Reasons : Cashback programmes are run to incentivize new customer acquisition or to
increase the frequency of transaction among existing customers. Indian e-commerce giants are
bleeding money right now. Be it through discounts or cashbacks, the agenda is customer
acquisition, branding and market capitalisation.