The e-commerce market has been a boon to most of us in the urbanized parts of the nation. With fruits, mobile phones, beds and what not- being directly delivered to our doorstep, we really have come to depend on this industry for an easy, uncomplicated lifestyle. The give and take of goods and services have really led to a growth in the economy, while also helping us find some comfort in our hectic lives.
Even then, the buck doesn’t stop here, especially when we still have an estimate of 90 percent of the population pretty much untouched by this part of the internet space. The world of e-commerce is yet to penetrate into the rural and semi-urban parts of the nation, where the market potential is massive. With an intricate analysis of this market; and the various barriers/solutions associated with it, IndiaBuys has developed a model that can prove to be helpful in breaking through to the people in these areas.
These areas are vastly inhabited by people who have the financial capabilities to make product purchases but refrain from doing the same due to various constraints- especially the lack of technological knowledge, poor internet connectivity and transportation/logistic/delivery issues. Thus, this leaves them stuck to the local businesses, even though they seldom offer with good quality products or discounted rates.
Here are a couple of facts that can be taken into account as to how e-commerce can boost the rural and semi-urban economy:
- According to a recent report by the Boston Consulting Group (BCG), only 15 percent of the people who have internet access are frequent customers to the e-commerce industry.
- By the year 2020, more than 50 percent of the Indian population using the internet, shall belong to the rural and semi-urban areas.
- This means, there would be a considerable rise of more than 30 percent rural and semi-urban population using the internet by the year 2020- around 320 million people.
- Subsequently, this opens a nice window of opportunity for the e-commerce industry to get these users comfortable with their internet-based services.
- If we aim at improving the accessibility of the e-commerce industry to these parts of the country, most of the people will eventually adapt to the process and avail the goodness online shopping.
- This would increase the demand for products they couldn’t otherwise have knowledge of or the things that were otherwise unavailable to them.
- It could also be a two-way road- where they could get in touch with our India Buys store owners and sell products online- such as pottery, giving a much-deserved boost to their local economy at the same time.
With endless possibilities of a healthy virtual market, we can really have an economic boom in these areas of the country. All it requires is an introduction of the e-commerce industry to the rural and semi-urban parts, and an equally smooth
transition for them to start making use of these services in their day to day life.