Home to a population of over 1.2 billion people, India has long been considered a sleeping giant in the e-commerce industry. The potential target audience for Internet transactions in the second most populated country in the world is obviously huge. But at the same time, low Internet penetration rates, along with a lack of standardization in postal codes and logistics challenges in rural areas, have prevented e-commerce in India to reach its full potential.
A Shift in Power
But recent reports suggest that a paradigm shift is currently occurring. In fact, India’s e-commerce industry is expected to rise to 6 billion in 2015, according to Business Insider. Though it would still only comprise less than 4 percent of the total retail industry, this 70 percent jump would confirm what many business insiders have long suspected–that India is beginning to become a significant player in the global e-commerce market.
India’s rise in e-commerce is happening simultaneously with a rise in mobile commerce in the country. A recent upswing in the smart phone market has allowed consumers to utilize their mobile devices to purchase goods while no longer having to rely on wired and wireless Internet connections. What makes this all possible? Recommerce. As new generations of smartphones hit the market, older generations are becoming available via recommerce, which renders them affordable, even in rural communities.
Recommerce Is the Future of Global Commerce
India’s current e-commerce and mobile commerce situation offers a perfect case study in how recommerce can help consumers. By establishing buyback programs and reselling older devices, businesses are able to make smartphones available to those who would otherwise be unable to afford them. The result is a greater penetration of Internet and e-commerce possibilities for millions of new consumers.
In short, recommerce is a great opportunity for companies to expand their business while helping the consumer. Contact us to see how an innovative recommerce solution can be integrated into your business!