Locally relevant solutions can unlock USD 50 bn opportunity in e-comm space: Study
Enhancing literacy and building locally relevant solutions can drive usage and transactions among Internet users in the country, helping unlock a USD 50 billion opportunity in the e-commerce space, a report said today.
"There is potential to unlock over USD 50 billion in online commerce in India by driving awareness, usage and transactions among the current and next set of Internet users and shoppers," it said. The report is based on inputs from about 3,400 respondents.
Also, the drop-out rates remain high. As many as 54 million users today have not carried out a transaction after the first trial purchase, the report noted, adding that a significant number of people still complete their transactions offline after their research online.
"With the user growth and adoption story on a fast growing trajectory, there is a need to grow consumer confidence to make digital a medium of choice for services and transactions for users across the country," Google India Industry Director Vikas Agnihotri said.
He added that the report outlines the need for much focused intervention for different subsets of the users who are now online. and grow consumer confidence to make the digital medium a viable platform for all.
"While online spends are still low given lower per capita incomes, there is huge potential to unlock value by addressing user concerns at various stages of the digital curve. However, the path won't be easy for businesses and they will have to innovate and be patient to monetise this user base and generate value," Bain & Company partner Arpan Sheth said.
Also, building locally-relevant solutions across content and use cases will help drive user-engagement, which will be "key to unlock 130 million new users and doubling Internet penetration in rural areas".
The report also noted that through omni-channel presence, reinforcing product quality in brand messaging and assuaging concerns on product-returns, businesses can build trust through a superior pre- and post-sales experience.
"The key is to build solutions aimed at those who are coming online over the next five years or the next half billion as we describe them. The report underlines our belief that entrepreneurs must focus on long-term, sustainable solutions that put trust and engagement front and centre," Siddharth Nautiyal, Investment Partner at Omidyar Network, said.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)