eCommerce market has registered a stupendous growth rate in India (17 billion to over a 100 billion dollars by 2020 as per data projections made by Pricewaterhouse Coopers®). While domestic e-Tailers like Snapdeal®, Flipkart® have garnered multi-million dollar investments, foreign counterparts like Amazon® are betting on India as their # 1 growth engine in terms of market growth and potential, having invested more than 7 billion dollars from internal resources. Hyper-competition is fast approaching a tipping point where customer acquisition and retention is becoming the numero uno challenge along with differentiation.
In years to come, core competency in specific product categories would become key, failing which, e-Tailers are more likely to bleed than remain buoyant. The current boom is a super bubble that can burst with the law of diminishing returns pin, which is bound to apply more as well as faster, to such a hyper-competitive landscape. Managing and retaining your customer while maintaining market share will become CSFs to an extremity.
e-Commerce, thanks to convergence across varied digital media has been able to accrue enormous operational and cost leverage. The market is remarkably underscored by oligopoly and thereby, there is massive opportunity for small to medium players here to exploit Webisdom's compelling know-how in this field and maintain a distinct competitive advantage. For the larger players, the game would be to maintain the right kind of product portfolio and ensure sustained competitive advantage in that field.