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Online shopping is increasing in India and will soon be a ‘Cashless Society’

TrendyBharat, cashless, electronic, e-commerce
While e-commerce technology will soon be accepted across all brick-and-mortar retailers, it’s also time to welcome ‘cashless society’


Online shopping is increasing in India and will soon be a ‘Cashless Society’

In an exclusive, TrendyBharat founder Varinder Singh Jawanda gives us insight to the e-commerce space in India and what the future of the handicrafts industry could be

E-commerce industry is growing at an astounding rate in India. People now prefer shopping online instead of visiting offline stores. Branded apparels, accessories, jewelries, gifts, gadgets, footwear are among the major hits on e-commerce shopping portals.

The style of shopping has drastically shifted from traditional shopping to online. With technology comes ease, with trend comes growth. The actual growth of e-commerce cannot be evaluated without taking certain things into consideration.

  • Top 3 consumer trends in the e-commerce industry in India

Cash-On-Delivery (COD) – The most preferred online payment method. Indians love this way, since they aren’t paying until the product is at their doorstep.

60% of online purchases happen during business hours (9 AM – 5 PM) – Online shopping has become essential in our day-to-day lives. But do you know that 60% of the online purchases are made during working hours between 9 am to 5 pm. Marketers use this fact to schedule their promotions across various advertising channels.

Shopping via mobile (Websites & Apps) – Customers are more likely to visit shops through their mobile, preferably shopping on-the-go, not having to move around – shopping via mobile is therefore their best option. This technology will soon be accepted across all brick-and-mortar retailers.

  • Bottlenecks affecting e-commerce

With everything is just a click away, e-commerce has transformed the way we see and do business. It’s easy, and useful, but still there are certain things which are affecting e-commerce. With all positive aspects, there are some negative aspects as well.

One of the biggest problems is ‘touch and feel buying’ which consumers still prefer.

The other bottleneck would be the ‘trust factor’. Folks are still sceptical about online purchases. There are a lot of cases of product mismatch, that has put a big question mark on the e-commerce business. This makes one think twice before purchasing any product online. So there has to be a proper work flow to gain customers trust.

The other problem is the ‘online money transfers’. When people do online payments, internet security remains a big question.So there is a need of ‘secure payment system’ that can help in building trust of consumers to pay online.

Further, good quality products and easy exchange are the areas that should be looked upon.

  • Digital payments are the future of e-commerce industry in India

India is the behemoth of E-commerce, and digital payments are the future of this ever-flourishing industry. The launch of Unified Payment Interface (UPI) in April has brightened up the future of digital payments. The UPI focuses on making person-to-person and person-to-merchant payment easier, secure and seamless. Transforming India into a ‘Cashless Society’ is evident with this revolutionary move of RBI (Reserve Bank of India) and NCPI (National Payments Corporation of India).

So, it’s time to welcome ‘cashless society’ that seems promising in near future.

  • Penetration of e-commerce in rural market

E-commerce has grown unprecedentedly in India, but it has not touched rural lives in a big way. Majority of Indian population still lives in rural areas, and the real potential of India’s online shopping will only be unlocked if Indian retailers can figure out ways to reach out to rural markets.

When we talk about ‘penetration of e-commerce in rural market’, it is worth noting that there is a tie-up between e-commerce companies and the Indian government to improve the scenario. Since it is not possible for e-commerce companies alone to reach rural markets, as a result, they are likely to spend more money on marketing and penetration. So together, they will roll out some e-commerce services in rural places.

In addition to this, the Indian government has also made it easier for foreign e-commerce companies to come here and set up shops, mainly in rural areas (India).

  • Growth of Indian Handicraft Industry By 2020

Handicrafts represent the culture, heritage, tradition of a country, and reflect the skill of the local populace and India is one of the most sought-after destinations for this. India has been a major producer and supplier of handicrafts products and considered as one of the most important suppliers, globally.

Handicraft industry is extremely shattered in India and has been facing major challenges that include lack of raw materials, lack of adequate finance, lack of design & innovation, growing competition of factory-made products, lack of technology upgradation, insufficient market information and of course, right pricing.

On the contrary, development of real estate, retail business, increased use of internet and e-commerce, spending by tourists is nevertheless supporting many rural businesses including handicraft sector.

So when it comes to the growth rate of Indian Handicraft Industry, India’s handicraft exports are expected to cross Rs 17,000 crore mark by the end of FY2015-16 and by FY 2020-21 likely to cross Rs 24,000 crore, according to ASSOCHAM.

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of the publication

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