2014 has been a landmark year for Indian retail. Though eCommerce accounts for less than 4% of Indian retail, this growing segment has brewed a hurricane in the market! Let’s have a look at the major happenings of the year gone by:-
- 2014 marks the decision of major retail houses to start their eCommerce initiatives. Unilever, Reliance, Tata, Microsoft, Aditya Birla Group, Godrej, Future Group, Walmart, Shopper Stop and have all committed to go big on eCommerce. The big guns of Indian retail are getting smarter with their strategies; all are planning to take their brands Omni-channel.
- The world’s largest postal network, India Post entered the eCommerce arena. Within the first year of starting eCommerce delivery services, India post has transacted business worth Rs. 280 crores in the CoD (Cash on Delivery) segment alone
- Ecommerce marketplaces have seen historic amounts of investments flowing in and niche players have had a taste of their potential.
o Amazon committed $2 billion to its India operations
o Flipkart received a $1 billion(about 6,347 crores) funding in one of the biggest funding rounds of the country. With 26 million unique visitors in a month along with acquired fashion marketplace Myntra, Flipkart raised fresh funding of $700 million in December 2014. This makes their funding tally close to $2 billion in 2014. This company is now valued at a whopping $11 billion!
o Another leading marketplace, Snapdeal did quite well for itself with $627 million from Softbank and a personal investment from industrialist Ratan Tata.
o Niche players such as Urban Ladder (Furnishings), First Cry (Baby Care), Pepper Fry (Furnishings) and Pretty Secrets(Lingerie) to name a few, all raised the big bucks and saw exponential increase in traffic and sales the past year
- The 2014 festive season saw an aberrant jump in traffic and took the eCommerce industry to another trajectory with unprecedented traffic and sales. This can be evidently seen through Flipkart’s Big Billion Day sale where 1 billion hits and $100 million sale was observed in the first 10 hours.
- Google’s 3 day Great Online Shopping Festival exceeded the expectations of their 450 participants who saw great increase in their traffic and conversions as compared to 2013’s festival.
- This is the first time physical retailers felt the punch of eCommerce on a grand scale. The Confederation of All India Traders, an umbrella body for regular retail trade industry, has protested against eCommerce business practices and has urged the government to regulate the industry. They alleged that eCommerce firms were not sticking to the rules of trade. The government has stepped in to regulate this rapidly growing sector.
- 2014 was a great year for MartJack as well!
With 2014 coming to a close, what does the New Year have in store for us?
According to Gartner Inc. , Indian eCommerce is to see a 70% over the 2014 revenue to reach a $6 billion in 2015. The Indian eCommerce market is still in its nacent stages and a lot of growth is to be expected in the coming year. Hence, your brand’s online strategy will make a difference. We at MartJack are soon releasing Omni-channel trend predictions for 2015 from industry experts and though t leaders. Look out for our upcoming posts !