India’s 112 Bn+ eCommerce market is buzzing with new e-commerce trends 2024 that can change the game in 2024. With Walmart infusing $600 million into Flipkart and Amazon pausing its spending in India, many key events are expected to leave a solid impact on the eCommerce industry.
Today we will cover up five of the emerging trends in the e-commerce industry that we can expect in 2024. Before that let’s recap the major events of the past year that will surely shape the eCommerce industry in the coming years:-
- MamaEarth became the first publicly traded D2C brand in India.
- ONDC made a big foray into India’s digital commerce sector in 2023
- Conglomerates are clocking revenues beyond metros & Tier 1 cities.
- The government backs ONDC to keep a check on dominant players.
- Flipkart captured around 90% of the total GMV during festive sales.
- Stores implementing omnichannel operations rose by 58.4% in 2023.
Now keeping in view these developments in 2023, we can say that 2024 can bring a series of new changes that can play a vital role in shaping our eCommerce industry. Here are five of these trends that you can expect in 2024:-
5 Significant eCommerce Trends to Expect in 2024
National E-Commerce Policy
We all know about the constant battle between India’s retailer body, the Conference of All India Traders, and the marketplace duopoly.
There are high chances of an announcement and implementation of the National E-Commerce Policy. It will disrupt even the well-laid plans of many eCommerce players.
E-commerce giants like Amazon and Flipkart are already in rounds of discussion with the Union Commerce Ministry to express their concerns over provisions of eCommerce consumer protection rules.
The eCommerce stores that have violated the FDI and FEMA rules in the past will face notable consequences on expansion & partnership plans due to the upcoming eCommerce policy.
Rise in Category-specific eCommerce
In recent years, we have witnessed significant strides in the growth of category-specific eCommerce marketplaces. Some have even reached profitability, whereas horizontal marketplaces like Flipkart and Amazon are yet to achieve it.
The best examples are publicly listed companies like Nike and CarTrade, which have already achieved profitability, and companies like Urban Ladder, which have already attracted giants like Reliance.
The upcoming IPO from FirstCry can be seen as a metric for the success of vertical e-commerce marketplaces. Experts believe that privately held category-specific marketplaces will get more funding and acquisition opportunities in the coming years.
Acquisition Appetite of Conglomerates
The big conglomerates in India like Reliance Industries, Aditya Birla Group, and Tata Group have an astonishing size advantage over the e-commerce players.
Despite massive growth in the e-commerce industry, it is still a small part when you compare it to the $1.5 trillion retail Industry. Platforms like JioMart and TataNue already have an unshakeable dominance in the retail industry.
As per some experts at Savings24x7, digitising the thousands of offline stores brings other brands into the digital sphere. Acquisitions will be the next leg of growth for these conglomerates.
Industry sources revealed that the next leg of growth for these conglomerates will come from digitising their thousands of offline stores. This will bring their brands into the digital sphere, and acquisitions.
Roll-Ups of D2C House Of Brands
India is known for its house of brand ecosystem, which has seen huge growth in the past years. However, the fall of Amazon’s brands aggregator Thrasio’s Meteoric is a good lesson for its clones.
We all have witnessed the acquisition spree of similar platforms like Goat Brand Labs, Globalbees, and Mensa brand, which have raised millions in quick succession.
Experts believe these acquisitions have happened at very high valuations. The house of brand platforms that have raised venture capital will soon find themselves in a difficult situation.
We can witness further consolidation and mergers. Giants like Wipro Consumer Care, Reliance, and TMRW can acquire a few of these platforms shortly.
ONDC Penetration To Grow
ONDC (Open Network For Digital Commerce), introduced in 2023 is a great initiative to transform the ecommerce landscape. Although it has already begun disrupting food delivery, the open protocol is still in the early stages.
According to Mr. Shireesh Joshi, Chief Business Officer of ONDC, the current focus is to expand into more cities and eCommerce verticals. However, ONDC is still building its network and is making swift progress in seller onboarding and awareness campaigns.
The major eCommerce players such as BigBasket, PhonePe, Paytm, and Ola have already joined the ONDC, showing its growing presence in the industry. However, some big players like Amazon and Flipkart are yet to join this not-for-profit entity.
Conclusion
So, these were the five of the most significant trends that our eCommerce industry can witness in 2024. As eCommerce is an ever-changing landscape having the right information to strengthen your adaptability is key to success.
By focusing on these e-commerce trends to expect in 2024, you have an edge over the competition. So start forging a plan of actions that fit well within this changing landscape.
