Role of E-commerce in Strengthening the Market for International Brands in India
E-commerce has become the future for all types of retail, from high-end luxury fashion and jewelry to your everyday groceries.
How many of us are still new to the concept of shopping online? Who misses the simple old ways of leaving the house, visiting a store, enjoying a sensory experience of the products along with the salesperson explaining and convincing you to purchase a product?
E-commerce has become the future for all types of retail, from high-end luxury fashion and jewelry to your everyday groceries. The convenience of being anywhere and with just a click of a finger having your desired goods or services delivered to your doorstep.
India is a fast-growing/ developing nation with its vast population and untapped markets. The majority of the population is in the working class/ aspirational age group giving more opportunity for the world to take advantage and enter the market. The ‘netizens’ mindsets have evolved and are more open to experimenting and taking risks along with being highly susceptible to social media and its trends. Many international brands big and small look at this as an opportunity to grow into new markets. E-commerce has become the most cost-effective alternative.
With the changing times further aggravated by the pandemic, e-retail has become that much more popular and accessible to all demographics. It is tough to stand out on these platforms with the plethora of options based on size, popularity, ratings, and price levels.
In the beauty/ wellness industry for example, with the likes of Amazon and Nykaa, international brands find e-commerce an easier, faster, and more feasible way of testing the market. A platform where the exact database of users in terms of the target market is concentrated and looking for new and aspirational products every day. With minimal capital investment i.e. no need for stores, staff, training, testers, display fixtures to name a few, brands can quickly start seeing a return on investment from the very first day of listing.
Puressentiel is one such international French brand that entered the Indian market with its Aromatherapy-based healing products amidst the Covid lockdown. E-commerce was the only option at the time and the response has been better than expected. It took no time for the brand to build loyal customers and then word of mouth and a strong social media strategy are the basis of the brand success story. It took just a few months to understand the pricing strategy which could be easily tweaked along with visual infographics to hold the attention of the customer and convert the sale. Next-day delivery and free returns made first-time customers comfortable investing in a product new to the market.
A unified omnichannel experience is a secret to building a successful brand to stand out and have a maximum top-of-mind recall. All of this is of course solely due to the ease of being on e-commerce. Targeted marketing and online campaigns drove traffic to the website and viola the brand has already created its own space and recognition in the wellness category.
Gradually brands have become more confident of working on entering markets via the e-commerce format before venturing into the brick-and-mortar stores.