- A surge in 2018
The last few years have certainly taken India by storm when you look at developments across various spectrums such as 4G and demonetisation to name a few amongst the many. Since then there has been a tremendous growth in small and medium business industries. Taking a look back at 2017 one of the biggest changes since then would be the gigantic change in the customer base in India with an increased access to the Internet and digital channels. According to statistics there are over 462 million Internet users in India with over 34% Internet penetration. This is also changing the customer demographics, with 72% of the Internet users below the age of 35.
It would be an understatement to say that Indian e-commerce market hasn’t transformed the way business is done in India. And it is expected to grow to US$200 billion by the year 2026 from the US$38.5 billion which was the case in 2017. India’s Internet economy is to double by the year 2020 majorly backed by ecommerce with its revenue set to be growing at an annual rate of 51% which incidentally is also the highest in the world. Prompted by the rising smartphone market and increase in consumer wealth the Indian ecommerce market observes a steady growth led by Flipkart, Amazon India and Paytm Mall with electronics being the largest contributor to online retail sales in India with a share of 48%, followed closely by apparel at 29%.
The e-commerce Industry has been directly impacting MSME in India by upholding a means of financing, technology and training and also having a cascading effect on other industries as well. It not only brings innovations such as digital payments, hyper-local logistics, analytical customer engagement to the table but also boosts employment and increase in revenues from various avenues such as export which would play a great deal of part in striking the balance between the market growth and customer satisfaction in the long run to come.