Mumbai: The potential for eCommerce extends beyond major urban centres, with non-metros contributing to 71% of total orders. Shiprocket, an eCommerce enablement platform, has released a detailed trend report titled ‘How Bharat’s MSMEs are selling online; today at its flagship event Shiprocket SHIVIR 2024 held in New Delhi.
– The Trends report also reveals a growing trust in digital payments, with UPI popular for smaller applications and 42% of consumers preferring prepaid methods.
– Retailers prove a weekend shopping option for consumers, with 84% of orders placed during this period
The report reveals that WhatsApp usage among Longtail marketers has increased from 35% initially to 40% currently, and among SMBs from 25% to 30%
– Women-led MSMEs, which account for 20.5% of registered enterprises, are key contributors, generating 19% of employment.
Launched by MD, CEO of Shiprocket, Saahil Goel, the report is in line with Shiprocket’s mission to support MSMEs with the knowledge and tools they need to navigate and thrive in the rapidly evolving eCommerce market, ultimately contribute to a strong and dynamic digital economy. India. The report aims to shed light on the factors driving the eCommerce revolution in Bharat by analyzing available data trends on consumer behavior, technological growth, the global eCommerce market, and government initiatives.
Rise of eCommerce in Bharat: Retailers handle more than 71% of orders from non-metros
The growth of eCommerce in Bharat is fueled by the country’s digital transformation – internet penetration, smartphone usage and digital payment systems. Major cities such as Delhi, Bangalore, and Mumbai are prominent hubs for retailers, with Delhi alone accounting for 6% of total orders by 2023. , coming from non-metro areas. This highlights the huge potential for eCommerce growth beyond metropolitan areas.
Changing Customer Preferences: MSMEs receive the bulk of orders–84% on weekends
In terms of customer preferences, MSMEs are witnessing a rising demand for products in the Personal Care category, representing 27% of orders in Q1 2024, while Apparel and Footwear and Electronics follow with 20% and 9% respectively. successively. MSMEs saw a preference for weekend shopping among consumers, with 84% of orders placed during this period, and a greater reliance on digital payments, as evidenced by 42% of consumers preferring these methods prepaid. MSMEs have seen an increase in orders from Maharashtra (15%), Karnataka (10%) and Uttar Pradesh (9%) and different purchasing patterns, with 53% of consumers being marked as discount seekers. and 84% of customers are leads. quality over price. Retailers have noted that 68% of orders placed in 2023 are discounted, and sales peak between 12 PM and 6 PM. These insights highlight the importance of tailored marketing strategies and the potential for further growth in the eCommerce sector.
Increase in Adoption of Technology Solutions: MSMEs Adopt WhatsApp for Direct Marketing, Adoption Increases from 25% to 30%
As MSMEs continue to ride the eCommerce wave, they continue to adopt advanced technology solutions to stay ahead. Marketing tools are being integrated to optimize campaigns, personalize customer interactions, and enhance marketing effectiveness. Social media marketing, especially through platforms like WhatsApp, has seen huge acceptance among MSMEs in Bharat. Data shows that WhatsApp usage among Longtail marketers has increased from 35% initially to 40% currently, and among SMBs from 25% to 30%, which highlighting the shift towards direct and immediate communication channels. Additionally, data analytics tools help MSMEs gain valuable insights into customer behavior, improve product offerings, and make smarter business decisions. By analyzing sales data, tracking customer preferences, and identifying trends, these tools empower businesses to improve their overall strategic planning.
MSMEs and the $300 Billion Future: The Evolution of Bharat’s eCommerce
Looking to the future of India’s $300 billion eCommerce market, the report highlights the critical need for inclusive growth. Women-led MSMEs, which account for 20.5% of all registered enterprises, are key contributors to the growing market, generating 19% of jobs. Sustainability concerns are changing consumer preferences and MSMEs are adapting to these changes by continuing to adopt more efficient practices within the system, such as sustainable packaging and electric vehicles. . MSMEs are witnessing a growing demand for ethically sourced products such as vegan beauty products, wellness products and pet care products.
“At Shiprocket, we see firsthand how MSMEs, the powerhouses of India’s eCommerce landscape, are driving the market to its inevitable future of $300 billion. This growth is not limited to the cities but has a major impact on Bharat, highlighting the heart and stability of our country. Our latest report, ‘How Bharat’s MSMEs are selling online,’ launched at Shiprocket SHIVIR 2024, aims to empower these businesses. and more. It provides invaluable insight into the evolving eCommerce space, fostering inclusive growth and strengthening our commitment as their trusted partner to success,” said Goel.
To allow MSMEs with more accessible information about the eCommerce ecosystem, as well as trend reporting, Shiprocket has also launched a dedicated trends section on their website where merchants can collect shopping trends. real time and analytics to know how India is buying. Through Shivir, Shiprocket aims to bring together MSMEs, MSME start-ups, and business networking under one roof and facilitate knowledge sharing and networking, paving the way for the next wave of growth for Indian MSMEs.
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