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Home > Industry News Analysis, My Thoughts, Start Up, Strategy, Venture Capital > 2014- The year of e-commerce Startups!

2014- The year of e-commerce Startups!


eretail

 

2014 will be remembered in the startup ecosystem of India which was  completely dominate by the e-commerce startups. Be it the success of mega funding  rounds of Flipkart and Snapdeal or the price wars raged by the e-retailers on each other. Or, the sweet-bitter memories of the one-day mega sales and shopping festivals. Or, the protests by the small shop owners who claimto have been mauled by the e-retail giants. Love it or hate it- the year was that of the e-commerce.

The Indian e-comm industry has yet to learn a lot of tricks of the trade, but one thing is for sure, it is here to stay and will only grow big.

The potential for growth can be judged from the fact that the total size of the Indian e-retail revenue for the year 2014 is less than half the revenue for the Singles Day sale of Alibaba in China. Market size of retail in India is estimated to be at $600 billion a year. Which makes the e-retail industry less than even 1% of the total retail market (organized and unorganized). There are many gaps in the current market that need to be addressed and will be addressed by new players. The coming years will see this percentage share grow to at-least 6-8% which gives a huge space for growth for the existing players as well as a fertile ground for new startups.

With new investments flowing into the Indian e-retail industry, I also see consolidation happening in the market. The 2013 and 2014 also saw some consolidation happening in the e-retail space with Flikart acquiring Let’sBuy & Myntra and Amazon trying to acquire Jabong. The consolidation will gain momentum in next two years to eliminate some of the redundancy in the market.

All said and done, the next couple of years are going to see a lot of action in the e-retail space. Get ready for a lot of click-click!

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