YB

FUTURE OF E- COMMERCE
IN INDIA

FAYO
 FUTURE OF E-COMMERCE IN INDIA
EMERGING TRENDS AND TECHNOLOGY

• INTRODUCTION
• REVIEW OF LITERATURE
• MATERIAL AND METHODS
• OBJECTIVES
• EVOLUTION OF E-COMMERCE
• CHALLENGES IN E-COMMERCE
• OPPORTUNITIES IN ECOMMERCE
• FUTURE OF E-COMMERCE
• FINDINGS
• CONCLUSION
INTRODUCTION

E- COMMERCE
E-commerce is also known as electronic
commerce refers to the buying and selling of
goods and services over the internet in
simple terms, it is the digital version
traditional brick and mortar retail stores E -
commerce website allow customers to
browse product, make purchases and receive
deliveries all from the comfort of their own
house.
RAPID GROWTH
India’s e-commerce market has experienced
exponential growth, driven by increasing
internet penetration, smartphone adoption, and
digital literacy.
MOBILE COMMERCE

Mobile devices has emerged as the primary

means of accessing the internet in India, leading
to a surge in mobile commerce.
 MARKETPLACE DOMINANCE

E-commerce marketplaces such as Amazon, Flipkart, and Reliance-

owned Jio Mart dominate the Indian e-commerce landscape, offering a
wide range of products, competitive pricing, and convenient delivery
options.
DIGITAL PAYMENTS
REVOLUTION
The demonetization drive and government initiatives such as
Digital India and unified Payments Interface (UPI) have
accelerated the adoption of digital payments in India.
The evolution of e-commerce in India can be
divided into
four phases:

Phase 1 (1995-2005): Infancy

• India's first online shopping platform, Fabmall, launched in 1999

• Basic online transactions, limited internet penetration (0.5% in 2000)
• Focus on B2B (business-to-business) transactions
 Phase 2 (2005-2010): Growth
• Online travel agencies (OTAs) like MakeMyTrip, Yatra emerged
• E-commerce platforms like Flipkart (2007), Snapdeal (2010) launched
• Internet penetration increased (8.5% in 2010)
• Focus on B2C (business-to-consumer) transactions
 Phase 3 (2010-2015): Expansion
• Mobile internet usage grew, 3G services introduced
• Online marketplaces like Amazon India (2013), Paytm (2010) entered
• Digital payments like Paytm Wallet
• Social media influence on online shopping increased
Phase 4 (2015-present): Maturation
• Smartphone adoption surged, 4G services introduced
• Unified Payments Interface (UPI) launched
• Artificial intelligence (AI), machine learning (ML) adoption
• Voice commerce, social commerce, and influencer marketing grew
 REVIEW OF LITERATURE

1. Huang & Rust, 2018 - Personalization: Advanced data analytics and AI enable hyper-personalized product

recommendations, content, and experiences.

2. Sharma et al., 2020 - Sustainability: Consumers increasingly prioritize eco-friendly practices, driving businesses to

adopt sustainable e-commerce strategies.

3. Li et al., 2019 - Social Commerce: Social media platforms integrate e-commerce features, enabling seamless

shopping experiences.

4. Kumar et al., 2020 - Omnichannel Retailing: Businesses adopt integrated online and offline channels for a

cohesive customer journey.

5. Kumar et al., 2020 - Mobile-First Strategies: Optimized mobile experiences, mobile payments, and location-based
Emerging Technologies

1. Burger et al., 2019 - Artificial Intelligence (AI): AI-powered chatbots, predictive analytics, and personalized

recommendations enhance customer experiences.

2. Kim & Lee, 2018 - Augmented Reality (AR): AR enables immersive product experiences, virtual try-ons, and

interactive storytelling.

3. Chen et al., 2019 - Blockchain: Blockchain technology ensures secure, transparent, and tamper-proof transactions,

and enables decentralized marketplaces.

4. Kumar et al., 2020 - Internet of Things (IoT): IoT facilitates smart shopping, automated inventory management,

and connected devices.

5. Ericsson, 2020 - 5G Networks: Faster, more reliable connectivity supports seamless video streaming and real-time

customer support.
PRIMARY DATA

Expert interviews
❑ Case studies

❑ Technology forecasting

METHODS
MATERIAL

❑ Online sources

❑ Case studies
❑ Expert interviews

❑ Technology forecasting

METHODS
RESEARCH OBJECTIVES

• To Identify emerging trends

• To Analyze emerging technologies

• To Forecast future development

• To Assess consumer behavior

• To Customer satisfaction`
⮚ Logistics and ⮚ Infrastructure
Supply Chain and
Management
Connectivity
⮚ Quality and
⮚ Digital Divide
Authenticity Concerns
⮚ Payment and CHALLENGES
⮚ Customer
IN
Security Issues
E-COMMERCE Behavior and
⮚ Competition Preferences
and Market ⮚ Rural E-commerce
Saturation Challenges
⮚ Regulatory ⮚ Technology
Framework and Innovation
 Logistics and Supply Chain
Management

Inefficient delivery Lack of warehousing

networks infrastructure

High transportation
costs
 Digital Divide

Limited internet Inadequate access to

penetration in rural smartphones
areas

Low digital literacy

 PAYMENT AND SECURITY
ISSUES

Limited digital Concerns about data

payment options security and privacy

High transaction fees

 COMPETITION AND
MARKET SATURATION

Intense competition Difficulty in

among e-commerce differentiating
players products and services
Market saturation in
urban areas
 Regulatory Framework

Complex and evolving Compliance

regulatory challenges
environment
Restrictions on foreign
direct investment
 INFRASTRUCTURE AND
CONNECTIVITY

Inadequate internet Limited access to

infrastructure reliable transportation

Frequent power
outages
Rapid Urbanization
Rapid urbanization is driving the growth of e-commerce in India, with an
increasing number of people moving to cities and adopting online shopping

Increased Internet Penetration

Widespread internet penetration, especially in
rural areas, is fueling the growth of e-commerce,
with over 850 million internet connections in
2022
Smartphone Adoption
The increasing adoption of smartphones, with over 1,020 million wireless mobile
subscribers in 2022, is enabling more people to access e-commerce platforms
 CUSTOMER BEHAVIOR AND
PREFERENCES

Diverse customer Expectations for fast

preferences delivery and returns

Price sensitivity
 QUALITY AND
AUTHENTICITY CONCERNS

Counterfeit products Lack of trust in online

marketplaces

Quality control issues

 RURAL E-COMMERCE
CHALLENGES

Limited access to Difficulty in reaching

internet and rural customers
smartphones

Low digital literacy

 TECHNOLOGY AND
INNOVATION

Keeping pace with Leveraging data

rapidly evolving analytics and AI
technology

Investing in
innovation and R&D
EMERGING TRENDS IN
E- COMMERCE
Digital Payments
Digital payments are becoming increasingly popular, with a growth rate of 50% in
2022, and are expected to account for 80% of all transactions in India by 2025.

Omnichannel Retailing
Omnichannel retailing is becoming a trend, with
businesses providing a seamless shopping
experience across online and offline channels

Social Commerce
Social commerce is emerging as a trend, with businesses using social media platforms
to sell products and services
Sustainable E-commerce
Sustainable e-commerce practices, such as eco-friendly packaging and
reduced carbon footprint, are gaining importance

Rural E-commerce
E-commerce is expanding to rural areas, with
non-metro users accounting for a significant
share of the total user base in 2023

Mobile Commerce
Mobile commerce is dominating the e-commerce landscape, with most online
shoppers using mobile devices to make purchases
Government Initiatives
Government initiatives, such as the Digital India campaign, are
supporting the growth of e-commerce by promoting digital
infrastructure and payments
Direct-to-Consumer (DTC)
DTC models will become more popular,
allowing brands to collect first-party customer
data and deliver personalized experiences.

Human as a Premium
Brands will focus on connecting with customers on an emotional level,
emphasizing human elements in a world of automation.
FUTURE OF E-COMMERCE
IN INDIA

Short-term (2023-2025)

Mid-term (2025-2030)

Long-term (2030-2040)
 SHORT-TERM (2023-2025)

1. Continued growth: 20-25% annual growth rate

2. Increased mobile commerce
3. Rising digital payments
4. Expansion into rural areas
5. Growing demand for online services
 Mid-term (2025-2030)

1. Maturing market: Consolidation and specialization

2. Advanced technologies: AI, AR, VR, and blockchain adoption
3. Social commerce and influencer marketing
4. Sustainable e-commerce practices
5. Cross-border e-commerce growth
 Long-term (2030-2040)

1. E-commerce dominance: 50% of retail sales online

2. Omnichannel retailing: Seamless online-offline experience
3. Personalized shopping: AI-driven recommendations
4. Autonomous delivery: Drones and self-driving vehicles
5. Global leadership: India as a global e-commerce hub
ARTIFICIAL INTELLIGENCE
 SERVICE SECTOR
PRODUCTION SECTOR

● Customer Service
• Automation of Repetitive and Support
Tasks

● Personalization
• Predictive Maintenance

\
BENEFITS

1. Security
2. Transparency
3. Immutable
4. Efficiency
5. Trustless
AR (Augmented Reality) and VR (Virtual
Reality)
 VR (VIRTUAL REALITY
AR (AUGMENTED REALITY) • Immersive Shopping
Experiences

• Efficiency vs. Quality

• Product Training and

• Automation and Education

Technological
Integration • Virtual Product
Customization t.

• In-Context Product
Visualizations • Enhanced Customer
Service

• Gamification
 BENEFITS

• Increased Conversions Reduced Returns

• Enhanced Customer Experience
• Improved Product Understanding
• Increased Engagement and Loyalty
BLOCKCHAIN
 SERVICE SECTOR
PRODUCTION SECTOR

• Financial Services
• Supply Chain
Management • Healthcare

• Smart Contracts • Identity Verification

• Inventory Management • Digital Advertising

• Sustainability Tracking • Energy Sector

BENEFITS

• Security
• transparency
• Immutable
• Efficiency
• Trustless
INTERNET OF THINGS (IOT)
 SERVICE SECTOR
PRODUCTION SECTOR

• Customer Experience
• Predictive Maintenance Enhancement

• Supply Chain • Remote Monitoring and

Optimization Maintenance
BENEFITS
• Increased Efficiency
• Enhanced Decision Making
• Improved safety and security
• Predictive Maintenance
FINDINGS
 CONCLUSION

One

Two
THANK
YOU