Priceeagle Speaks


How e-commerce in rural India growing at a pace.

E-commerce in india

E-commerce is becoming a thing which continuously growing from the last few decades in retail sales. Many businesses coming online and utilizing the power of the internet to market their products and services by covering both urban and rural areas.

Today e-commerce has become one of the most convenient ways of buying products and services online. \

E-commerce making our life easy to buy products from different online stores which give information about the latest fashion and trending products with exciting offers and at discounted prices.

Sometimes e-commerce also saves your large amount of money on buying different products from online stores as compared to physical retail stores.

E-commerce in Urban areas:

The Indian e-commerce sector is thriving over the years in urban areas as people are more educated, tech-savvy and are capable to spend more.

Indian e-commerce going beyond buying mobiles, laptops, rail tickets, etc. the content of which are mostly available in the English language.

I was just discussing with our security guard Mr. Pavan, a guy who earns merely a salary of Rs.12K a month, originally from Bihar but now settled in Hyderabad for the last ten years.

He uses a smart phone with data plan and pay a good amount of money in comparison to his salary for data services as he feels he gets lots of value from mobile internet.

Currently, the gross sale value of e-commerce is about 10 billion USD but it is going to cross 30 billion USD by 2020-21 and it is going to spread over semi-urban and rural India much beyond metros.

Whether good or bad, post Reliance Jio launch data services have become really affordable. And literally, there is boom in mobile internet services.

India’s top 20% android users are spending more than four hours per day on apps and least active users are spending 1.5 hours and median being more than 2.5 hours per day which ranked India next to South Korea, Mexico, Brazil and Japan.

A good and affordable data service are precursors to e-commerce and Indian data consumption has increased from 200 million GB to 1.5 billion GB per month between August,2016 to August 2017.

This is a growth of more than 700% in a year as the data tariff has fallen from Rs.250 per GB to Rs.150 per 30GB during the same period.

So, data has become extremely affordable along with the mobile handset due to high demand (economy of scale).

Just to put the perspective right the number of 4G smart phone in March,2016 were only 47 million and as on March 2017 the same number had become 131 million,a growth of more than 250 per cent.

India is going to become the biggest mobile internet market in the world.

Two factors are extremely important for e-commerce namely smart phone penetration and internet subscribers.

During 2015-16 urban and rural internet subscribers were 262 and 109 million respectively. As per industry projection the same is going to be 458 and 321 million respectively in2019-20.

So, while urban India will grow @ less than 200 per cent, the same for rural India is about 300 per cent. 

The story of smart phone penetration in rural India is more aggressive. From mere 35 million handset during 2015-16 it is going to grow @ 900 to touch 315 million in 2019-20.

A robust delivery system, wear-housing, digital payment system, affiliation system, price-comparison system, more service partners, assisted e-commerce will make Indian e-commerce more and more stronger.

Due to this we would move from a discount driven market to a solid value driven market.

Value will be in the form of ease of understanding the content ( read local language), wide access to selection, brand, variety, ease of ordering, time saving and ease of accepting the right staff and registering a complaint in easy way, if any.

E-commerce in Rural India:

The total Indian population includes the major part of rural India and in the Indian economy, rural districts play an important role. By considering this e-commerce or any other industry is viewing it as a big source of revenue from rural areas.

Although their are some challenges in front of e-commerce companies to expand their reach in rural zones.

like still there is anxiety in rural areas to do online purchases and heretofore some people who afraid to do online payment.

People feel discomfort about e-commerce in rural India because of unacceptance at the primary level.

One of the main reasons is that people are not understanding the English language properly and avoids buying online.

As many websites using the English language for communication, which is the reason to takes away rural customers from buying products online.

E-commerce companies need to consider this issue as an e-commerce development factor by providing vernacular language so that people can easily communicate with the firms in their local language.

Along with this, people are not that technically advanced so they can shop via laptop and desktop. even if they do, they prefer to use mobile phones and consume more data over mobile phones.

Access to transport facility and warehouse structure would be an issue to look after for e-commerce in rural India. However Indian postal services have collaborated with 400 e-commerce websites.

Besides all these barriers e-commerce companies and brands are eager to explore the opportunities in rural India.

The e-commerce in rural India market has the potential to be at $10 billion to $12 billion in the next four years on the back of increasing internet penetration, rising household income and the government’s push on digital in rural areas, said a report from market research firm EY India.

Please remember, rural India needs as much e-commerce as urban India. There is no doubt about it.

Because slowly rural India is getting aspirational but there is no way they could fulfill their aspiration due to lack of availability of good brands and multi-brand stores. And e-commerce is the only answer to fulfill this gap.

Today, almost every kind of products and services are available through e-commerce viz. baby products, adult products, luxury bags and watches, funeral service, puja service, match-making to dating service.

You name it, and they have it. So, you feel that there is no scope to improve the business further.

Not really. Today, except few portals, almost all the e-commerce services are available mostly in English language.

And the research says that only 30 to 40 per cent of total mobile internet users are fully comfortable in English. This means they can read, write and interpret the context correctly in English.

Then you may feel how others are engaged in e-commerce? How do they select? How do they buy? Answer is simple. Approximation is the only weapon, available at present.

They see the photo. They discuss with the friends. Then they buy. Last November, I had been to a place called Ziro, near Itanagar, the capital of Arunachal Pradesh.

I found ladies are buying saree from e-commerce portal. But, they are facing difficulties as everything is written in English. But, local people are comfortable in Hindi.

 The best answer to this problem is the usage of regional local language. Just to give you an example about 6 to 7 Crores Indian Muslims are comfortable in Urdu.

But, today there is no option for them. So, e-commerce in regional language has a terrific future as millions of non-English speaking populations could be extremely comfortable in e-commerce as they would be able to make an informed decision.

How Priceeagle solving the problem:

The good news is that by considering this problem in the current scenario, we at have done a commendable job from this perspective.

As we have made the content available in ten regional languages like Hindi, Bengali, Tamil, Telegu, Malayalam, Urdu, Marathi, Punjabi, Kannada and Gujarati with a price-comparison format.

Our mission is to reach every house who wish to buy products online but due to the communication gap and having difficulty in reading the English language on e-commerce sites many people still face difficulties in buying products online.

Along with this, we are suggesting the best price to online buyers for any products by giving a comparison amongst diverse e-commerce sites with exciting offers and deals.

We are happy to serve them by providing the facility of reading and understanding products and services in their own regional languages. and making their online buying journey as easy as possible.

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