Top Trends for e-Commerce companies in year 2013 – Part 2

Cherry peddler in Bucharest, around 1869.

In December 2012, I wrote an article on the possible trends for the Indian e-Commerce Industry in year 2013, and today while we are already a quarter deeper into year 2013, I would like to revisit those points once again…..

You can read the previously published article here –  Top Trends for e-Commerce companies in year 2013

#1. Lesser Investor Money would flow into the e-Commerce space: So far, the investor sentiments have been really gloomy and the whole enthusiasm towards e-commerce industry has suddenly toned down among the investor’s communities. And the consequences of such a sentiment are clear – Most of the companies failed to survive in absence of the external financial support. The companies are left with just one option – innovate to generate some self-sustaining cash-flows. The companies which have so far failed to innovate are either perishing fast, or are waiting for the deadline when they can shut shops. (I have very reliable information on the internal distress at companies like Flipkart, BeStylish, Giftcart, and multiple more companies, and the only thing they want to do is to take a last chance with their survival possibilities). One of the good things which has emerged out of the survival instinct of these companies is that – they have either modified their business plans, or have included a few more services (not products) to generate some cash in-flows.

#2.  Reduction in Mindless Marketing via customer bombardment: Recently, Jabong bombarded me with their campaign mailers, and I found myself helpless enough, and had to finally unsubscribe myself from their mailing (bombardment) list. I also wrote to them asking for the reason why they targeted me so heavily. In response, I got a call from their customer service division where the person made sure that I have been calmed down, and my contact details are removed from all such lists. I appreciate the effort they made, but I am not too happy that why did this happen at all. And then I got a chance to speak to one of the industry veterans, and he accepted that such a massive mailing is actually turning out to be a costly decision (many customers are lost forever). I hope they understand it faster than the market reacts to such things.

#3. Visibility on other devices: So far, in the first quarter, I didn’t see much change in this front. Most of the people continued with their existing devices and time windows. I see two reasons for the same – First, They didn’t have enough funds to do so, and Second, they were busy making the year-end balance sheet look better by spending less (on marketing and other R&D activities like App development and all). However, I am still bullish about the fact that this industry needs to reach out to people via different screens to people, just the computer screen won’t be enough for them. Moreover, looking at the diversity of Indian consumer, it makes sense to reach out to him via difference screens.

#4. Rise of Local e-Tailing: This has been the strongest growth areas of Indian e-Commerce. And if you don’t believe me, let me place an indicator to prove the point – The number of DIY platforms customized for Indian e-Tailing market is seeing a rise with each passing day, and it appears to me that each one is enrolling a good number of merchants. Take for example Martjack, Zepo, Big Foot Retail, Build A Bazaar, etc and on top of all this, even Flipkart and Jabong are offering these services to local merchants. This segment is certainly rising, and it holds a lot of promise in year 2013.

#5. Focus on Quality, Less on Marketing Expenses: One thing which has been consistent in year 2013 is that – Everyone is talking about customer satisfaction rather than offering discounts. The cost of customer acquisition was at it’s all time high in year 2012 because of the flawed strategies, however, 2013 seems to have offered some sanity to the industry and now every company is involved in improving the product quality, delivery timelines, customer support, process enhancements, etc. Looks like customers will gain some more trust in the online shopping this year.



  1. Pingback: Top Trends for e-Commerce companies in year 2013 | 'On The Job' Learning

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