FY2017 has not been as fast paced as FY2016 for the ecommerce segment but it has been a year of great resilience, market expansion, tough competition, and heightened interest from global players. Flipkart expanded its reach via acquisition, Snapdeal rebranded and Amazon continued with its efforts on market expansion with new programs and initiatives. Growth in tier II and III cities have been remarkable too.
However, the major trend is brick and mortar stores moving towards digitization. While online players like Nykaa, Voylla, Lenskart and Zivame continued to expand operations through their brick and mortar stores, offline players such as Future Group, Mahindra Retail, Reliance Group, etc. have started showing interest in an online presence. Next few years should further blur the line between online to offline and offline to online platforms.
Another trend has been the rise of niche ecommerce segments, such as the following:
Top technology themes that became significant in 2016
Factors that are driving segment in India are:
Stay tuned for more insights on the segment in India. Check for blogs and datapoints from our recent report. You can also download the chapter on Ecommerce section here.