Market Trends of E-Commerce Industry
The Growing Use of Smartphones is Driving E-commerce Sales
- Rising internet penetration and increased smartphone usage are set to bolster the growth of the market. As Internet and mobile phone usage expands, consumer preferences are shifting toward online shopping. With consumers now more dependent on digital devices, mobiles are expected to emerge as the dominant channel for online purchases within the next five years.
- Global smartphone and tablet adoption fuels the expansion of online retail. With advancements like branded shopping apps, 5G connectivity, and social shopping, consumers can effortlessly shop via mobile devices. These advancements empower retailers, enhancing sales, boosting conversions, fostering loyalty, and enabling precise consumer data tracking for targeted marketing.
- However, as technology evolves, many retailers grapple with crafting a cohesive and impactful customer experience across diverse platforms. Leading retailers have rolled out dedicated applications and e-commerce platforms to elevate consumer engagement, while others are optimistic that mobile users will seamlessly transition to their existing e-commerce offerings.
- Brands on various e-commerce platforms are delving into virtual shopping and experimenting with augmented and virtual reality retail. Consumers face no boundaries in the expansive realm of the metaverse, which is a 3D virtual reality. Individuals worldwide can interact with products in this immersive environment, transcending geographical limitations.
Understand The Key Trends Shaping This Market
Download PDF
Initiatives by the Government Are Expected to Drive the Market
- In the e-commerce market, a key trend is the surge in initiatives from both governments and companies aimed at boosting e-commerce sales. The Union Ministry of India unveiled plans for 'Bharat Craft,' an e-commerce platform inspired by China's Alibaba. This platform aims to empower MSMEs (micro, small, and medium enterprises) in India, facilitating product marketing and sales and propelling the nation's economic growth.
- On a national scale, government entities are refining policies to ensure the e-commerce market’s sustainability and prioritize consumer protection. By elevating environmental and social standards, these nations aim to enhance their norms, directly influencing the e-commerce landscape. For instance, stringent regulations could deter companies from entering the e-commerce arena, while more lenient ones might encourage participation.
- Furthermore, initiatives like the Digital India program, Unified Payment Interface (UPI), and GeM, spearheaded by the Indian government, have played a pivotal role in the e-commerce market’s recent expansion. With government backing, the e-commerce market is now focusing on localized strategies to penetrate rural markets. This involves strengthening the network of rural distributors and merchants and utilizing local distribution centers as convenient pick-up and drop-off points.
- During the World Economic Forum Annual Meeting in Switzerland, representatives from 22 members of the WTO’s joint statement initiative on e-commerce convened to reiterate their dedication to crafting a regulatory framework for the global digital economy.
Get Analysis on Important Geographic Markets
Download PDF
