Future of Hyperlocal E-commerce Market: India in 2020
According to the research report, the India Hyperlocal market will grow at a considerable CAGR rate thus exceeding INR 2,306 crore by 2020.
There has been a paradigm shift in terms of the lifestyle preferences and buying trends among Indian consumers over the last two decades. With the opening, up of the Indian economy, Urban India has gradually embraced consumerism and is increasingly opting for seamless services.
Growing internet penetration and the rise in the number of people using smartphones have acted as a catalyst for the hyperlocal sector while reshaping customer behaviour and expectations. Along with this, increasing disposable incomes, the rise in aspirational values of the consumer, urbanization, and change in technology have also contributed to a booming hyperlocal e-commerce. Also, there is an increase in the young population who believe in ‘Working hard and living stress-free’. They, too, are responsible for the spurt in activity in this sector.
Talking of the Hyperlocal e-commerce industry in India, it has been significantly driven by growing number of start-ups”, enhanced investments and “on-demand delivery preference”.
According to the research report, the India Hyperlocal market will grow at a considerable CAGR rate thus exceeding INR 2,306 crore by 2020. Increasing urbanization, personalization of affinities along with the ability to curate products that appeal to the aesthetic sensibilities or aspirational desires of the person will lead to the rise in the Hyperlocal market in India.
The latest buzz today word is “Hyperlocal”. Diversity in cultures, backgrounds, communities and the vast Indian landscape is geographically divided by these and a rich heritage, but convenience and emotions are still the main driving forces that help build businesses which serve the varied communities of the country. Today, India’s is going Hyperlocal; and people are embracing this new and dynamic marketplace, as it provides them with all things traditional and modern. By 2020, India will move on hyperlocal platforms with company’s such as Cre8comm with OEM’s, digital and hi-tech realms of the business; while maintaining the same bond with customers.
In the recent past, until malls and e-commerce took over our lives, the local Kirana and the scores of mom-and-pop stores served the areas in and around our homes. They had a geographical area that they catered to and were well versed with the families dotted in their delivery route. Company’s such as Cre8comm are built on the same emotions and relationships, only their geographical areas are extended to multiple cities and communities across the country. While cities such as Chennai and Kolkata still thrive on these old bonds and ties built over years. It has used these very same ties to generations of familial bonds between the store and the new age youth and reinvented the customer journey. Thus, forever changing the dynamics in relationships fostered to a much larger community driven platform engaging with the customer in a more personalized and detailed manner.
With the advent e-commerce and digitization; modern families have not attached to the old Kiranas anymore; they prefer to shop from large format stores and supermarkets. But India is a land built on nationalism, bonds, and emotional relationships between communities. If we were to predict how the next few years would pan out to be in this realm of the communities’ businesses, we would be thriving on the same relationships created years ago. Only, these relationships would have evolved and e-commerce would be your newly acquired Kirana.
Today’s, the mantra is all about presenting personalized messages to customers. People are always looking for compelling brand messages which are meaningful, these details help build loyalty; coupled with this, the lucrative offers and deals are defined as Hyperlocal. Cre8comm has solved the puzzle and put together one the most ground-breaking community driven marketplaces, with the widest range of traditional products including personalized connections with customers, have broken the Kirana myth with seamless transactions and services, bringing India to the forefront in the realm of community driven markets.
Few trends to watch out for –
- Logistics - Logistics is a key enabler for the growth of the e-commerce retail industry and is increasingly emerging as a differentiator in terms of customer service and satisfaction. The logistics sector specific to e-commerce retailing in India was valued at USD0.46 billion in 2016 and is projected to witness a CAGR of ~48 per cent in the upcoming five years to reach USD2.2 billion by 2020. Last mile delivery is the final stage in a delivery cycle when a customer receives the product. So, seamless delivery of product to the customer is crucial and will be the key differentiator. Also in such competitive landscape lot of e-commerce companies offering same day delivery. And for hyperlocal companies, they have to deliver within few hours.
- Technology - Considering short delivery times and on-demand service, it is technology enabled sector and players who will play on strong technology will strive.
Considering these developments and trends Hyperlocal space will see more companies and the big players will also foray. There is a possibility of consolidation over the next few years as the number of players emerging in this space is huge. Those who offer most seamless services will carve their niche in this sector.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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