Analysis of current situation and opportunities of India’s cross-border e-commerce market

As an emerging e-commerce market, India is attracting the attention of global investors with its large population base and rapidly growing Internet user base. As of 2020, India’s population has reached 1.38 billion, and the number of Internet users has exceeded 300 million. Although the proportion of online shopping is less than 1%, its e-commerce market has huge potential. In 2022, the total value of Indian e-commerce will reach US$80 billion, showing strong growth momentum.

Policy environment

The Indian government has launched a series of policies conducive to the development of e-commerce in recent years, including encouraging electronic payments, reducing logistics costs, and improving infrastructure. The demonetization policy and digital payment incentives implemented in 2016 have promoted the popularity of electronic wallets; the new GST policy that took effect in July 2017 has helped to form a unified market; at the same time, the “Bharat Mara” project aims to upgrade major cities across the country transport connection efficiency.

It is worth noting that the “Draft National E-Commerce Policy” puts forward more stringent regulatory requirements for e-commerce platforms, such as requiring all e-commerce websites to register entities in India. This move is aimed at protecting consumer rights and combating Counterfeit products.

Main e-commerce platforms

The Indian e-commerce market currently has three pillars: Flipkart, Snapdeal and Amazon. Among them, Flipkart occupies a leading position with its strong logistics system; Snapdeal has experienced the transformation from a group buying website to a comprehensive e-commerce platform; and Amazon India has risen rapidly with its global influence [[1]].

Consumption characteristics and trends

Indian e-commerce consumption shows diversified characteristics. Online shoppers over 45 years old account for a high proportion, and female consumers account for 43%, and the number continues to grow. Mobile devices, electronics and fashion are the main consumer categories, but areas such as food, FMCG, beauty and personal care are also showing strong growth.

Foreign trade environment

For overseas sellers, the Indian government provides tax credits to ease the compliance burden. In addition, when conducting business communications with Indian customers, it is particularly important to understand local cultural customs and negotiation skills. For example, Indian buyers tend to build trusting relationships through small favors and prefer English for written communication.

To sum up, the Indian cross-border e-commerce market is in a stage of rapid development. Although it faces many challenges, it is still full of opportunities. For Chinese companies interested in entering this market, a deep understanding of local policies and regulations, consumption habits, and market competition will be the key to success.


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