Direct to consumer, quick commerce and social commerce are some of the new ways of shopping which is expected to drive growth of online commerce in the coming decade along with omni-channel, vertical and horizontal commerce.
"In 2015 e-commerce was mostly dominated by horizontal. By 2020 it split across non-horizontal. Now an extremely diverse set of opportunities lies there for these six models," said Mrigank Gutgutia, director at Redseer while giving his presentation at the flagship event of the consulting firm.
According to recent reports, direct-to-consumer (D2C) brands alone could be a market worth $100 billion in the next five to seven years, as online buying has shot up during the pandemic and customers get interested in more niche segments. D2C brands are defined as companies which start out by selling from their website directly, and are assisted by e-commerce marketplaces such as Flipkart and Amazon.
These brands usually start out online, are more nimble than offline retailers, have higher margins and when online growth is slowing down, can transition offline to run an omni-channel model.
Redseer also issued a report which expects India's digital economy to touch $800 billion by 2030 making it the third-largest digital economy. It was pegged at $85-$90 billion in 2020. It also said that 88% of the online shoppers will be from Tier 2 cities between 2020-2030.
"There are many India within India," said Naren Ravla, Vice President, Head of Product Strategy Deployment at Flipkart, while speaking about the opportunities that lie in smaller towns and villages of the country for e-commerce companies. Ravla added that the key to crack this market is by breaking barriers like language, infrastructure. Ravla was speaking at a panel on e-commerce during the event.
He also said that digitisation of offline kirans has already started in the country. Referring to the recent Big Billion Day sale, he said about a third of deliveries that happened were delivered by kiranas.
