What Does 2022 Hold For India's E-Commerce Sector?

According to a PwC and NASSCOM report, India’s E-commerce market will grow at 25% over the next five years allowing it hit $188 billion by 2025 from $64 billion in 2020, a statement and verdict that, as a business woman and an E-commerce entrepreneur, does not surprise me at all.?

This impressive growth has been propelled by the pandemic which led to a real boosted shopping momentum across new categories and audiences. From books to clothing to groceries, we can get almost anything delivered to our doors, often the same day we click the order button on a desktop computer or smartphone.

Even pre-pandemic, Indian e-commerce was growing – in 2019 shopping app downloads increased by 34%. The pandemic propelled this shift on the back of a rising middle class that took the digital route amidst lockdowns solidly anchored by a growing base of smartphone and internet adoption particularly across Tier 2 and Tier 3 regions.

E-commerce has levelled the playing field for brands with direct-to-consumer business models that can deliver a stellar online experience. But even born-in-an-omnichannel-world companies need to stay one step ahead of E-commerce trends to ensure to keep up with customer demands and don’t get lapped by nimbler competition.

The Indian market is also expected to surpass the US to become the second-largest E-commerce market in the world by 2034, with grocery and fashion becoming the key drivers of this incremental growth.

As we enter a new year and E-commerce further expands its presence deeper into the country, let's take a look at some movements or developments that lie ahead and are set to dominate the industry.?

• Virtual Reality Is Here To Stay For A Very Long Time

2021 had witnessed major growth in the beauty E-commerce industry, ushering in this year with great potential. In 2022, the emergence of virtual reality tools will fuel the industry. Offering virtual beauty experiences that seamlessly merge with an omni-channel approach will be the norm. As an E-commerce entrepreneur and also as a beauty private label brand owner, over the next few years, I will invest in technology and data science advancements to further personalize customer experiences. Natural, transparent beauty products, effortless shopping with shorter delivery times, data-based product development, and value-driven experiences, are some of the other trends that will emerge in 2022.

• The Constant Rise Of Martech

‘MarTech’, which essentially means amalgamation of marketing with technology, is the future of commerce where brands will run marketing in a digital and connected ecosystem to offer an immersive experience to their customers. With the advancement of technology in marketing, consumers are constantly looking for an enhanced buying experience. Thereby meaning, from 2022 onwards we will witness more technology integrated experiences like development of offline Virtual Reality shopping rooms for consumers. Since VR offers an immersive 360-degree perspective, products in virtual design can be easily a luscious offering for customers who want an interactive experience with the product before making the decision, therefore, simplifying the buyer’s journey.

• Do Not Forget Personalisation

With the majority of buyers now clearly preferring online shopping over the traditional format of in-store purchasing, the new trend is inclined towards the forward-thinking, influential and proactive consumer. Personalisation of products according to customers' preference will be key in 2022. E-commerce marketers will need to integrate personalizing products through advanced technologies in order to provide tailor made and seamless customer experiences.

In a cookie-less world, contextual marketing has reared its head in a big way. Targeting consumers has come of age - from category, to keyword, to semantic contextual targeting, now. Many more trends like crypto payments and dynamic pricing will grow for pure-play retailers. But it is personalization for the consumer that will chart the way forward.?

• Ah...The Rapid Rise Of D2c Brands ?

The Indian E-commerce?market will continue to evolve in 2022, with D2C brands taking centre stage, driven by growing consumer demand and local brands increasingly making E-commerce?a priority. On the one hand, the new shopping habits formed over the past 18 months during the pandemic will become an important factor: consumers have embraced online shopping and are actively choosing small, independent brands. This means that D2C brands are here to stay, and we anticipate the emergence of a new generation of proudly Indian brands across food, fashion and lifestyle.?

Simultaneously, traditional brands and retailers who dominate offline are evolving to meet the demands of the new consumer - they are building to provide a consistent experience to their consumers across online and offline, and would like to use their own online stores to truly extend their brand promise to existing and new customers.?

Final Thoughts...

It’s a super exciting time to be a D2C brand in India. If you are looking for a partner to help you accelerate your presence and optimize your sales across the world's most formidable marketplaces, get in touch with us at Assiduus Global.