Indian Ecommerce To Grow 27% According to Goldman Sachs
New Goldman Sachs projections expect Indian ecommerce to reach US$99 billion by 2024, with a compound annual growth rate (CAGR) of 27% predicted.
Like in most markets, COVID-19 has had a profound impact on Indian ecommerce. Goldman Sachs says that the crisis has contributed to the ecommerce penetration rate doubling internationally. Certain areas of ecommerce, like consumer packaged goods, have experienced three years of expected penetration growth in just three months.
The company highlighted two categories that they expect to grow at a particularly fast rate.
“…grocery and fashion/apparel are likely to be the key drivers of incremental growth in our view.”
For retail, the report concluded that online penetration will go from 4.7% as was recorded in 2019, to 10.7% in 2024.
The report also spoke about the impact that Reliance Industries Limited (RIL) is likely to have on the ecommerce market in India. RIL is a multinational conglomerate headquartered in Mumbai, who own businesses in a range of industries, from energy to telecommunications. Goldman Sachs forecasts that by 2024, RIL will become a market leader in the online grocery space, with a market share of over 50%. RIL is tied up with the Facebook owned Whatsapp, a partnership that RIL hopes to use in order to connect local grocery stores with Indian shoppers.
For more information on emerging markets, read our free report on ecommerce in the Middle East.
44% Say Push Notifications Offers More Return On Investment (ROI) Than Email
A new study published by OneSignal finds that from the 300 businesses that were interviewed (20% retailers), 72% of them say that push notifications on mobile devices or web apps create an equal or greater ROI compared to email. Alongside this, 44% said that the ROI is greater with push notifications.
The study also found that 82% of the businesses involved in the survey said that push notifications help them meet or exceed their expectations and goals. Despite this, app analytics company Appfigures found that less than half of mobile apps currently utilize push notifications.
When analysing customer data, OneSignal noticed that push notifications increased the number of daily active users on the apps by 35% on average. This data was collected during April and May 2020, during a time when retailers were desperately looking to mitigate the effects of COVID-19 on sales.
Text messaging is another mobile marketing discipline that has seen great success when implemented by retailers, with 36% of retailers in a digital commerce 360 survey saying that the method has been an effective aspect of their marketing efforts.
66% Consumers Increase Online Shopping
In a survey of 809 US and UK consumers in July, personalization vendor Qubit has found that 50% of US and UK shoppers are doing more than 75% of their shopping online during the pandemic. It was also found that two out of three shoppers have increased online shopping due to the virus. While some shoppers had started shopping in stores again, many felt that it was not yet safe to do so, with 19% saying they would return in 2021, 13% waiting till a vaccine is ready, and 4% saying they would never shop in stores again.
Holiday season shopping was an important topic in the survey, with 44% saying that they plan to shop more online this holiday season compared to last year.
Brand loyalty seemed to be decreasing, as 37% explained that they are currently shopping with more brands than they did in 2019, while 46% mentioned that they consider themselves to be less loyal to brands that they like.
Asos Calls For Ethical Manufacturing From Partners
British fashion brand and online marketplace Asos has pushed for its brand partners to improve their efforts towards remaining transparent in their manufacturing practices, by agreeing to a new transparency pledge created by Asos.
The company is asking its brand partners, whose products make up around 60% of the goods sold on the Asos website, to sign their new transparency pledge in an effort to make sure their manufacturing practices are both safe and responsible.
The new pledge requires signees to make the details of their manufacturing supply chain publicly available on a regular basis. Brands will also be asked to map and give visibility to all aspects of their clothing supply chain, and give evidence of this visibility to Asos. Any risks within the supply chain must be identified by the brands, and following this, they must put plans in place to mitigate any risks, and may even need to work alongside Asos to address certain issues.
Asos ask that the brands they work with sign up to Fast Forward, a standards auditing methodology that focuses on supply chain labour regulations. This group was co-founded by a number of retailers back in 2014, one of which was Asos themselves. The aim of Fast Forward is to address worker rights in garment manufacturing, ensuring companies comply with labour laws, give their employees a fair wage, and more.
Although these measures are currently just for UK manufacturers, Asos has said that they are planning to roll out similar requirements for international manufacturers soon.
Asos already has a ‘Five Minimum Requirements’ plan, which came into effect in 2018. This laid the groundwork for transparency and social responsibility requirements for their manufacturing partners, instructing them to comply with local chemical requirements wherever they are based, providing transparency for what they call ‘Tier 1’ factories (Anywhere they Cut, Make, or Trim Garments), having an Animal Welfare policy in place, and for UK factories to publish a Modern Slavery Statement.