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Indian eCommerce in 2021: Shape of things to come

Indian eCommerce Industry so far.

India is one of the fastest-growing markets for the eCommerce industry. A report by Payoneer confirms this as it has awarded the 9th rank to India in terms of eCommerce growth. This growth has been majorly driven by the introduction of mobile devices and internet connectivity at affordable prices.

Apart from a deadly pandemic, 2020 was an important year for India. It was the year when the Indian Government’s “Make in India” and “Be Vocal for Local” movements gained traction. Through these movements, thousands of small-scale entrepreneurs could start a business and even take it online. 2020 has also paved the way for an interesting 2021 where the Indian eCommerce industry and its customers will experience a plethora of massive changes and trends. Let’s look at some of these trends in detail.

Top 10 Trends that will shape the Indian eCommerce industry in 2021

1. The impact of COVID 19 will continue.

The eCommerce industry welcomed a new buying trend during the last year’s pandemic. The number of people who bought daily essentials through eCommerce significantly rose. People bought soaps, groceries, medicines, etc., online to avoid the hassle of going to the market with the pandemic spreading like wildfire. This trend is expected to continue even in 2021 as people are more comfortable buying online than ever. The various benefits of cashless transactions have also helped in getting prepaid orders for a business.

2. Going environment-friendly way

The awareness to save the environment is on the rise among people. Today's consumers are expecting a product that is not only useful for them but also environmentally friendly. Studies show that 73% of consumers are willing to change their buying habits to reduce the environmental impact. Customers are also willing to pay more if their product supports sustainability. The 2021 eCommerce industry will be dominated by consumers purchasing a product with the below features -

  • Locally manufactured

  • Shipped in recyclable packaging material

  • Produced using a sustainable manufacturing process

  • The brand producing the product is transparent in terms of materials and methods used to manufacture.

3. Reaching the Global Market

Digital marketing is one of the essential reasons for the rise in sales for the eCommerce industry. Even small-scale eCommerce brands have started adopting digital marketing and social media marketing to improve their business. It also helps them reach the global markets to expand their target audience through digital marketing easily. The rise of several logistics partners has also eliminated the distance constraints between consumers and e-commerce vendors.

4. Interactive Content will continue to dominate

Most of us would have seen a brand posting a video on Youtube and giving the product link in the description. You would have even seen a brand posting an infographic as a story on Instagram and provide an easy option to review and buy the product. The use of social media platforms to interact with consumers had received an overwhelming response in the past. It will continue even in 2021 and beyond. You will start seeing brands constantly engaging their customers through videos about the product, infographics, quizzes, webinars, polls, and interactive emails. The creation of interactive content has helped and will always help consumers connect better with the product and purchase it.

5. Mobile shopping will be the primary shopping mode.

Today we have reached a stage where you can do anything on the go, thanks to mobile devices. The use of mobile phones is increasing worldwide, and the trend is being seen in the e-commerce industry. According to Statista, 73% of eCommerce sales will occur through mobile by the end of 2021. Most of the sites today are optimized for mobile use to help this. The time is also not very far when people with minimal tech knowledge will be comfortable researching a product and shopping simultaneously through their smartphone.

6. Social commerce will continue to dominate

Social commerce is where goods and services are sold directly using social media. Since most Indians have started using social media platforms like Facebook and Instagram, companies have started using it as a channel to sell. According to Statista, social media will penetrate around 54% of the Indian population in 2021. More than 130 million Instagram users click on product ads to know more about the product every month. These are staggering numbers which the eCommerce vendors can tap.

7. Millennials will be the primary customers.

The younger generation now leads the consumer market as more and more purchases are made by them. According to Shopify, around 67% of the young consumers (aged between 18 to 34) have started purchasing more online than before (the pandemic). The eCommerce industry should concentrate more on millennials in the coming days to increase their sales. The best way to capture the younger generation is to increase your budget on social media marketing as most millennials discover independent brands through social media.

8. Customised packaging to improve brand experience

In 2021, a package’s aesthetics will play a significant role in shaping the brand experience. This is where customized packaging can help. It will attract more customers by offering a personal touch to the product and generating a wonderful unboxing experience. Such packaging will bring a ‘premium-ness to their product. Consumers also tend to share their personalized packaging and unboxing experience on their social media accounts. This will be an excellent marketing strategy for eCommerce players.

9. Augmented reality

Though this has been in existence for quite some time, still augmented reality’s potential is not fully tapped. In 2021, more and more companies will start exploring augmented reality to enrich the customer experience. The cameras in most phones can take razor-sharp images, which can be used to enable augmented reality. Augmented reality in eCommerce apps and sites has helped users to try a product before buying it visually. This will improve the consumers’ confidence while buying your product.

10. Minimalistic Design for their website

Consumers are responding well to websites that look clean and simple. The top 10 winning eCommerce sites of 2020 all used a minimalistic design. The color pallet used was usually neutral colors like white, grey, and tan. These websites had a central search, neutral background, simple graphics, readable and simple text, and a clean product description page. The success of such designs will trigger many new and existing eCommerce players to try out minimalistic designs for their website in 2021.

Final Thoughts

The change in consumer behavior post the COVID-19 situation had given a significant boost to the eCommerce market. Support for the Indian eCommerce industry through governmental schemes had also helped to a great extent. In 2021, the primary aim of most eCommerce players will be to continue the momentum of the previous year and, at the same time, provide an excellent shopping experience to consumers. And to help eCommerce businesses scale up, we have brands like Powerhouse91 who can help them achieve their true potential. To know more about Powerhouse91 and how it can help your eCommerce business contact us now.

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