Inclusive E-commerce Growth in India
E-commerce has become a multi billion dollar industry. Out of this travel and tour clearly rules the space. With more 50% of the market share of e-commerce comes from booking of tickets and hotels online via different portals.
On one hand, travel and tours have been able to catch the market really fast, the retail industry despite it’s exponential growth will take couple of years to reach its true potential. E-tailing will need inclusive growth to be really appreciable by the people. People in tier-1 and tier-2 cities have started exploring online shops and store whereas people in tier-3 and further down cities are still skeptical about the prospects of online shopping.
Why travel as able to score more than retail in online commerce?
I would give the whole credit to IRCTC rather than MakeMyTrip etc. This is because IRCTC was able to make the person next to your house an online ticket agent.
Online commerce is game of trust. People in India do not trust easily. IRCTC was able to make people believe that the person sitting near your home would book your tickets online. People trust a person sitting in front of them more than behind a computer in any other city. This developed a bridge of trust between IRCTC and people. Other websites were easily able to capitalize on this trust and marched forward.
Whereas the supply chain network of our country is yet in its native state to encourage small city entrepreneurs to come online and sell from their home. This has resulted in lots of un-communicated issues. This lack of online retail bridge could hurt the e-commerce in longer run.
We need to have an inclusive e-commerce growth inside India to be truly able to unlock the potential of e-retail to fuel the growth of country, maintain the exponential growth of the industry and most importantly to bridge gap between the two Indias.