Direct To Consumer is the future for the e-commerce market. Since the start of digital transactions, the e-commerce market has flourished by three times.
India’s e-commerce industry has expanded three times since ‘Digital India’ was launched in 2015, but a mindset change is needed so that people in the industry can focus on the earning model, Bhavesh, an angel investor said.
He was speaking at the Internet Commerce Summit 2023 He said that, companies should focus more on the revenue model, which is required for every start-up to grow.
A panel of digital Chief Executive Officers (CEO) discussed the future of the e-commerce market.
Siddharth Dungarwal, founder of Snitch, a payment gateway said, “When internet penetration was absent in India, e-commerce grew only by 10 percent. Sincethe government launched Digital India, the real time digital transactions increased the potential of e-commerce by three times.”
Siddharth added that the positive impact has been on growth in per capita income of the nation. Presently, e-commerce is holding more than Rs. 5000 crore of market only in southern India. The digital market holds 25 percent than retail and offline shopping industry.
The Direct to Consumer or D2C model first picked its dominance in 2017-18. The youth plays a major role in driving the economy of the country.
While speaking about the young generations, Ashwini said that India gains $54 billion only from the digital shopping. In upcoming years, it will grow by eight times, he said.
Preeti Gupta, Chief Business Officer, Nykaa said, “In the past, parents used to teach their kids.The time has changed; now kids teach their parents about online shopping and e-commerce. Today’s generation usually doesn’t see big brands, they focus on package and the appeal of the product.”
In the arena of e-commerce, Artificial Intelligence (AI) is playing a crucial role for its business and increasing consumer base expansion. The fin-tech industry is also growing by 40 percent. More than 140 fin-tech companies are now registered with Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI).
Prakash Venkataramani, senior director of Global Payments of Flywire,a fin-tech company in Bengaluru, said, “The Unified Payments Interface (UPI) has seen transactions worth of $11 billion in 2022-23 and $17 billion as remittances. For fin-tech companies, UPI revolution has changed the course of the economy. India reached to fifth largest economy from eighth position, and UPI has a major role in skyrocketing of its Gross Domestic Product (GDP).”
While wrapping up the session, Saksham Bhagat, CEO of Swift Money said that real time payment system has changed the e-commerce industry in its outreach in terms of its profitability, turnover, and popularity of the company and start-ups especially.
Start-ups are becoming a new sector where economy, which was once stagnant , has now enhanced the possibility of raising India’s economy to $5 trillion economy, said Vishal Saxena, financial expert.
He added that in near future e-commerce start-ups will not only bring more competition in the market but also enhance it in terms of technology, advertisements, end-user experience. Digital currency is another achievement of the internet and e-commerce is thriving because of the industrial revolution 4.0 or internet.
