How E-Commerce will change in the next 5 years in India?
The Indian e-commerce industry has seen a series of devaluations and funding crunches in the past, this year has seen it all. This pattern has alarmed many and gave rise to the question, “Is this the end of this colourful industry in India?” But experts believe that we have a glowing future ahead.
The e-commerce sector is slated to increase by about 1200% to $200 billion by 2026, up from $15 million in 2016, according to a report by financial services expert Morgan Stanley. This is sure to bring a speck of smile to the industry waiting for any miracle to turn around.
The ways in which e-commerce is expected to change in the next 5 years:-
1. Enhanced retail experiences
Virtual reality can be a boon to the industry. The brick and mortar shops are gradually replaced with smaller experience-driven retail stores. Retailers can make use of bacon technology which is a refinement of the virtual reality. This is similar to the concept of a warning system where upon reaching, the user will be alerted through apps with alerts of discounts or detailed pick-up information, utilizing Bluetooth Low Energy technology.
2. Everything on mobile
E-commerce will basically shift towards the handheld devices because the traffic on sites from mobiles is 10 times greater than that on desktops. The mobile devices being considered the Omnichannel of life, brands will become more focused to develop their mobile experience, marking a new era for the industry. For example, Amazon’s shopping experience boasts of seamless, hassle-free and quick shopping options. Google is also mulling the idea to make mobiles the sole of their indexing services.
3. Touch-based experiences
The entry of mobile devices and use of multiple devices have raised the bar for user experience. Handheld devices are now mostly touch-operated thus it will pave the way for the touch experience. Augmented reality will enable a user to feel an object, touch it, move it, similar to the function one does at a brick store. In the e-commerce industry, buyers have to judge on the basis of flat images provided which in the near future be changed to 3D images, providing the glimpse as if the nonexistent object is placed right in front of the user.
4. Voice assistants
The technology innovation which started with the advent of ‘Siri’ has escalated due to the advance in augmented reality. Top players such as Amazon’s Echo and Google’s Home have entered the segment and are even being gradually welcomed though the prices are still steep in nature. The possibility of this science is endless, and yet it is in the hands of the public if they want to use it or not, whether it will be beneficial to integrate with their lives.
5. Better governance
With the introduction of GST in India, e-commerce players have better governance by the government. The decrease in prices of warehousing and delivery, tax collected at source and increased outreach will boost streamlining the service. The GST will create a level playing ground for the industry giving a fair chance to all the retailers and also uphold the business growth.
6. Automatic delivery
This is already being used in Japan and China. This technique allows delivery associates to deliver parcels using delivery drones and automated shipping trucks. Amazon has already tested this feature using to deliver a package using a drone in Bengaluru. This can reduce fuel costs and also augment customer experience.
This growth is being driven by a combination of rising internet penetration, extensive usage of smart-phones, drop in data access costs and flow of credit to consumers and micro-enterprises.