2 minute read 18 Mar 2021
Ecommerce trends 2021

Six e-commerce trends to watch out for in 2021

By Ankur Pahwa

EY India E-commerce and Consumer Internet Leader, Transactions Diligence Partner

Technology enthusiast. Passionate about growing the Indian start-up and entrepreneurial ecosystem. Angel investor and a mentor to budding entrepreneurs. Enjoy white water rafting, and traveling.

2 minute read 18 Mar 2021
Related topics E-commerce

We explore some of the key trends which hold the potential to take forward the growth of ecommerce and consumer internet in India in 2021.

The significance of ecommerce and consumer internet was brought to the forefront during the pandemic. We are the midst of significant digital disruption with business and consumers increasingly adopting online channels to conduct business and meet their need.

While the proliferation of ecommerce services has been slowly increasing every year, the eCommerce future trends are helping bringing onboard a wave of first-time customers across segments providing greater opportunities for enterprises and start-ups to cater to the growing cohort. The segment brought in ~$8 bn in investments from a very active PE-VC ecosystem and catapulted 9 companies to unicorn status with more expected to reach the milestone in the near future.

Some of the key ecommerce trends we expect to witness in India in the near future include:

  • Omni channel strategy - As traditional offline channels increasingly adopt online channels to reach their customers. The reverse is also true as online channels also look to expand their footprint through experience stores, etc.
  • Multi-language integration - With the next growth engine poised to be from Bharat (tier 2 cities and beyond) it will be crucial for eCommerce platforms to provide their services in a host of languages in order to gain necessary traction.
  • Direct to consumers (D2C) - With the exponential rise in the number of first-time users getting online to meet their shopping requirements, brands and companies will need certainly need to have their presence online either through marketplace listings or the more lucrative D2C channel. The online shopping trend will help bring in traction to into niche product categories and brand reach.
  • Digitization opportunities for businesses - The pandemic proved that digital ringfence is required in order to build a resilient enterprise. From Traditional conglomerates, enterprise services to humble mom-and-pop store have taken to digitizing their operations and we will continue to witness increased traction.
  • Deep-tech adoption - Many eCommerce companies are deploying deep-tech such as Artificial Intelligence, Machine learning, Internet of things, Virtual reality in a bid to provide improved personalised offerings to their customers
  • Rise of Super Apps - We have been witnessing expansion in portfolio service offerings, as online companies increasingly bid to become a one-stop shop to meet customer needs. While still in early stages, this is an interesting trend to look out for.
  • Consolidation - Considering the nascent stage of the segment there is yet tremendous value to be unlocked, online companies are grappling to quickly capture market, wallet, and mind share. Growth all around also means players in the space are constantly looking to consolidate their position and ensure long-term and sustainable growth in an increasingly competitive market.

Summary

The above are just few of the recent trends in eCommerce in India. We hope you enjoy reading the trendbook where we deep-dive into the future of eCommerce sector, how the pandemic impacted various sub-segments, emerging themes by segment, and PE-VC funding activity.

About this article

By Ankur Pahwa

EY India E-commerce and Consumer Internet Leader, Transactions Diligence Partner

Technology enthusiast. Passionate about growing the Indian start-up and entrepreneurial ecosystem. Angel investor and a mentor to budding entrepreneurs. Enjoy white water rafting, and traveling.

Related topics E-commerce