COVID-19 has increased the transition into online buying, which is occurring across industries as customers continue to limit their out-of-home contact in order to prevent the virus from spreading. Although the restrictions on the stores have been reduced by the authorities but as the world is entering into technology driven era there has been a rise in the online shopping across the globe which has fuelled up an increase in first time online buyers in India, as well as ecommerce users from Tier II and Tier III regions.

As per management consulting firm RedSeer Consulting, India's internet retail sector is forecasted to reach US$ 350 billion by 2030, up from US$ 45-50 billion currently. By the next decade, Indian ecommerce will overtake more established nations such as the UK and South Korea becoming the third largest market. The large part of the extension in the ecommerce sector is due to the major extension of the user funnel.

Trends that have been shaping the ecommerce sector for several years and nurturing the future of India.

Increasing demand for Omnichannel:  Due to the remarkable growth of ecommerce, omnichannel retail has emerged, with firms connecting their online sales channels with physical shops to provide customers with a smooth buying experience irrespective of the media they choose. Retailers with an omnichannel approach are well-equipped to meet the evolving needs of new-age customers, who expect a fully flexible buying experience, including the flexibility to buy their favourite product as per their choice from anywhere. Customer expectations of one- to two-day deliveries are another cause for the omnichannel hustle. In fact, several companies are using omnichannel to reduce order fulfilment time by transporting goods directly from their specific stores. According to Unicommerce reports, 20-25 % of omnichannel orders are fulfilled through stores.

Road ahead for Digital-first companies:  Consumers brands are opening up for digital business in order to connect with their customers directly and consumers across demographics are opting for online purchase nowadays. The digital-first, direct-to-consumer (D2C) craze has seized the ecommerce business. Mamaearth, Nykaa, and SUGAR Cosmetics are few examples of the digital-first firms that have taken the industry on the rise. This has prompted traditional FMCG and personal care firms to invest extensively in creating their own websites in order to increase customer loyalty. With the growing success of digital-first companies leading FMCG companies are now interested acquire or invest in them.

According to Unicommerce reports, brand portals have outperformed in the last year, with an increase of 80-90% in order size. While D2C and digital-first brands are rapidly expanding, and increase in volume drivers, so D2C companies will continue to emphasise both their websites and marketplaces as vital avenues for interacting with customers.

FMCG and personal care segments are gaining attraction: The ecommerce industry was mainly dominated by the fashion and electronic segments, but the pandemic has altered this status quo, and other categories such as personal care, beauty and wellness, and FMCG & healthcare are observing enormous online growth.

 

According to Unicommerce reports, the FMCG and personal care category recorded enhanced purchase volume growth of 80-90% in the last year. Factors such as high repeat buying cycles, and regular purchase during lockdown has led to habit development, causing in constant segment growth. The sector has also drawn the attention of ecommerce giants like Flipkart, Amazon, Swiggy and many others.

Evolving ecommerce models: As ecommerce remains to expand, there are new shopping models that are evolving in the industry and will create multiple new customer-centric models in the near future. The social commerce model has achieved the interest of consumers and investors in the last couple of years.

Top brands are leveraging social media platforms such as Instagram, Facebook, and Snapchat to connect with young customers of India, and it also observed that other models arise where individuals from Tier II and tier III cities are retailing products to their network through platforms like Meesho, BulBul, Shop101, CityMall, Simsim, DealShare, Mall91, etc.

As social commerce has grown into a huge success, other models such as voice-based shopping, shopping directly over WhatsApp, and chatbots are achieving good hold.

It can be observed that these are going to be the next big revolution in the ecommerce industry. This will also assist companies to customize their products based on consumer preferences.

The increasing ecommerce adoption is transforming the retail landscape of the country and new trends persist to emerge at a rapid pace. The line between online and offline will continue to fade and the only thing that will matter is customer experience.