India is the fastest growing market in the world. It is not for nothing that they say that it is “the China” of the second decade of the 21st century.
Knowing this, retailers (physical and online) from different origins are targeting there to generate more business volume.
It’s simple: India has 1.3 billion people and more than 50% are under 25 years of age, making it not only a hugely attractive market today, but even more so in the future.
Just to cite a few examples: Ikea opened its largest store in the world in India and Walmart (in association with Flipkart) and Amazon are just some of the large international companies that are setting foot in the new Asian giant.
According to information from the UN, in 2023 China would cease to be the “Asian giant” in terms of population, to leave that place to its neighbor. In 2050, the population of India will account for 19% of the global population.
India and online commerce
The Indian government knows that growth will bring problems and tries to get ahead of it.
One of the aspects is to avoid the monopolization of electronic commerce. For example, is preparing to launch an ecommerce initiative to “democratize” online shopping, in an attempt to challenge the dominance of companies like Amazon and Flipkart (Walmart).
“Open Network for Digital Commerce“ a non-profit company set up by the Indian Ministry of Commerce in 2021, is running trials in more than 85 cities ahead of an expected national rollout in 2023.
Although e-commerce companies like Amazon run proprietary services that control everything from supplier registration and delivery to the customer experience, The ONDC is an “interoperable” network where buyers and sellers can transact independently of the platforms they use to purchase products.
The network, which is open source, allows, for example, a customer using a fintech service provider to find and order a product from another provider registered on another platform and then have it shipped via any delivery platform, seeking the fastest way and cheapest option.
The Indian government says that this opening of transactions between platforms it will generate a much larger pool of sellers and buyers and result in lower costs.
Specifically, it seeks to offer an alternative to the oligopolistic tendencies of the large e-commerce platforms, at a time when the authorities of the different countries seek to put a brake on Big-Tech, publishes Financial Times.
India has about 200 million ecommerce users, according to Jefferies data.
Amazon and Flipkart are not yet registered on the state platform, although they have publicly said that they are going to join.
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