Indian Etailer’s Growth Mantra – Rural Before Global
Rural to urban migration in India is a common practice, mainly for better education and employment opportunities. But when it comes to ecommerce, there is an anti-clockwise migration where digital companies are moving from urban to rural terrain.
Experts approve of this trend as they feelexploring remote towns and villagesis the right path to growth. The popular sentiment is ‘think rural before going global’ should be digital start-up’s main goal.
Radhika Aggarwal, co-founder of online marketplace Shopcluesasserted, “We haven’t even scratched the surface yet in India. We’re very focused on getting into rural India and there are multiple things Indian companies can do before they start looking abroad.”
Top etailers are already doing their bit
After smellinghuge potential, ecommerce biggies Flipkart, Amazon, Snapdeal, Shopclues and Paytm have alreadymoved onto tier 2 & 3 cities, small towns and villages.
Low returns ratein the rural market is a big relief for etailers. Not to forget online orders fromsmall towns has only gone upin the past few years.
How are they managing to do it? By:
Partneringwith rural ecommerce start-ups for delivery assistance
Making most ofgovernment initiatives
Introducing regionallanguage websites
Buildingoffline storesin rural market
Barely a drop in the ocean
India’sonline buyer baseis very low compared to other ecommerce markets across the world. This is why our online industry is still termed as ‘at the nascent stage’ and has a long way to go before it hits the maturity stage.
Once the kinks such as bad internet connectivity, low penetration of digital payments, complicated logistics network, delivery nightmares, and ambiguous legal framework is ironed out, rural market will be a goldmine of ecommerce opportunities.