What’s the impact of the ecommerce consolidation on backend players like CCAvenue? In general, what has been the growth of Ecommerce businesses in India?
CCAvenue CMO, Mohan Nair shares a few interesting perspective and new product plans.
1. How is eCommerce doing in India? What growth numbers are you seeing?
Undoubtedly so, eCommerce statistics clearly indicate the exponential growth in India and the Asia Pacific region. There has been an increased eCommerce sales of 33% over last year in the region with a CAGR of over 57% YOY from 2009 onwards which showcases the potential of eCommerce in India. Indian eCommerce is estimated to be worth more than $14 billion in 2012-13 compared to $6.3 billion in 2011. So growth is evident, however compared to the latest global numbers which mention internet sales to have crossed a Trillion USD, a lot needs to be sought and done.
2. 10 years is a long time. Compared to the West, what is holding back the growth of eCommerce in India ?
Well, the primary aspect that affects eCommerce adversely is the penetration of internet and technology. In a huge consumer-driven market like India, it is as less as 11.4 % of the country’s total population! Also, how can we expect comparable growth in ecommerce when we have not more than 20,000 merchants across India. Well, in the US a single payment gateway Authorize.net powers >2.1 million merchants. How many of our big brands are today online? Very few.. except for Travel and hospitality, all others industry segments have a long way to go in the online space.. There are over 125 million SMEs in India but only 20000 ecommerce merchants. The crux of the matter is that we need ‘value creation’- for increased ecommerce transactions, we need more buyers… but how does none buy when there are no sellers?
3. So does CCAvenue expect an upswing in business in the coming future??
Yes, definitely so. We at CCAvenue have noticed significant MOM growth in the number of registrations received at our end. In fact our new “Free Economy account” offer has created ripples in the start-up/ merchant community. Also we are glad that more & more companies are approaching us for alliances and strategic tie-ups. Enquiries from reseller partners have increased multiple folds. We believe all this reflects exponential growth expectations in the ecommerce space. Although we are market leaders catering to 85% of the ecommerce merchants in India, a huge market is yet to be tapped and we are geared up to consolidate our #1 position.
The free account policy is a very well thought out and planned move. We have seen the industry evolving and understand the need of the merchants- especially Start-ups. As a pioneer & a market leader, we feel it is our responsibility to play the role of a catalyst to the growth of ecommerce in India. On the impact- well we have been receiving >300% more registrations on a daily basis compared to earlier!!
5. NextBigWhat for CCAvenue??
A lot is there in the pipeline.. We have something path -breaking up our sleeves- given the power of Social media, we feel it is time to harness the social media network’s potential to garner commercial advantage for our valued merchants.
We will soon be launching a new payment processing platform which is much advanced- such that it has globally the best available product features backed by best-in-class technology. We are building lots of transaction enhancing features based on our loyal merchant feedback. Also in the coming weeks we will be launching a next-generation marketing platform for the benefit of our merchants.
6. eCommerce community is often critical of the stringent guidelines of the RBI? What’s your take on it??
In our opinion, RBI is being customer centric and we feel that is fair enough. It is due to RBI’s mandate on additional security parameters that the cases of online frauds happening in India are almost negligible compared to that in the West. But at the same time RBI has always encouraged the financial services industry to align itself with the larger goal for financial inclusion such that we have a cashless economy. Hopefully we will see a balance between financial safety on one side & impetus to eCommerce and Online payments on the other.
Adds NextBigWhat team: The Ecommerce space in India is evolving and between all the consolidation, lies a huge opportunity for companies to engage with emerging players and importantly, find new ways to engage with the connected audience.
Disclosure: CCAvenue is an advertiser on NextBigWhat.