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Evolution of e-commerce in India

The Indian e-retailing industry is booming. Case in point, the market size has grown from $600 million two years ago to $2.3 billion. We are at a similar inflection point as China was 10 years ago. This is just the beginning. The e-retailing market is expected to reach $32 Billion by 2020. According to Matrix Partners, many ‘Billion dollar e-commerce companies’ are expected to be created in India by then. At present, there are just 3: Flipkart, Snapdeal and Paytm that has just joined the club. Notably, these 3 and the other big domestic and foreign players, namely Shopclues, eBay and Amazon, follow a horizontal marketplace model. As competition amongst them heats up and it is hard to distinguish from each other in terms of products and user experience, new players are emerging with a focus on differentiation. And not surprisingly, they focus on vertical or niche categories. Here’s a look at some of them.

 

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