eCommerce News- November 2021
Flipkart to Hold Second Edition of Sustainability Action Summit on 18th & 19th November
- Flipkart will have another edition of Sustainability Action Summit to showcase its responsibility towards the green economy. The second edition of the summit will be held on 18th & 19th November virtually like last year.
- The e-commerce giant has shown its Corporate Social Responsibility by reducing the use of single use plastic last year by 50% and by 100% this year across its fulfillment.
- The summit will feature leaders & experts across the globe discussing crucial topics on environment.
PharmEasy files for Rs 6,250 Crore IPO
- Digital healthcare platform, Pharmeasy API Holdings filed for an initial public offering (IPO) of upto Rs. 6250 crores on 10th November, 2021
- PharmEasy is also considering a pre-IPO fundraise via private placement to the tune of Rs. 1250 crores. The company has already raised $350 million (Rs 2,635.22 crore) in fresh equity from new investors in october.
- According to a RedSeer Report, API Holdings is India’s largest digital healthcare platform based on gross merchant value (GMV) of products and services sold for the year ended March 31, 2021.
Anchit Nayar, Speaks about Nykaa becoming their Fifth Family Member after Massive Success
- Anchit Nayar, the CEO of Nykaa, in his media statement said Nykaa is like a fifth member of the Nayar family. For them their 3000 employees and 300000 shareholders are part of Nykaa too.
- When asked about the challenges for Nykaa in the future, he replied that Nykaa has grown up along with competition in the industry. Marketplaces in India already know that beauty is good business along with being a disruptive one.
- Anchit shared that t Nykaa faces the challenge of being misperceived as a makeup company. However, makeup is just 30% of their business and retails contributes to about 70%.
Eshopbox Aims to Strengthen eCommerce Business with Innovative Supply Chain Management
- With more consumers opting for online shopping after the pandemic, India’s ecommerce industry can’t rely on traditional logistics & supply chain management.
- Eshopbox, an ecommerce logistics platform aims to accelerate sales by providing fast and affordable fulfilment to businesses by partnering with traditional warehouses.
- After the sellers drop their inventories in the Eshopbox locations, it undergoes a quality check irrespective of the type of product. Only good quality products get a green signal for online sale and are passed down the supply chain.
Myntra’s New Move into Influencer Led Economy
- The influencer marketing industry is growing rapidly in India. Myntra is aiming to adopt a video led commerce model on its platform soon.
- Being the first ecommerce platform to opt for a creator economy, Myntra has started partnering with various influencers for the same and even launched a reality show Myntra Fashion Superstar.
- While the previous seasons saw big influencers as guests, this time the show will have influencers as judges.
India’s eCommerce Industry Growth Forecast for next 3 years: Report by MAAS
- The covid-19 pandemic accelerated the growth of ecommerce platforms and brands in India, with people from different age groups shopping for a variety of products online.
- The average daily time spent by online Indian shoppers has increased to 5.2 hours as compared to 4.9 hours before the pandemic, which is still more than other southeast nations.
- In a recent report by MAAS, the festive period in India shows a steep rise in online shopping activities as marketplaces and sellers offer heavy discounts to attract customers.
Roll Up ecommerce, Gradually Flourishing in India
- Roll up eCommerce firms are slowly marking their presence in India. They provide expertise and infrastructure to the individual e-commerce firms to strengthen their growth. Sometimes they even buy a majority stake in them.
- The increased popularity of online shopping after the pandemic has encouraged the entry of ecommerce roll up firms into the country.
- 10 Club was one of the first Indian e-commerce roll up firms founded in 2020. Currently there are six ecommerce roll up firms in India including Mensa which have managed to achieve unicorn status.
Nestle aims to double its sale via ecommerce by 2025
- Nestle in an investor summit said that it expects to double its ecommerce sales by 2025 by stepping up marketing and technological investments.
- This will be initiated by directly selling its products on its own online channels Nespresso.com and Purina.co.uk.
- Nestle said its digital marketing investment would generate 400 million first-party data points collected directly from consumers. This will enhance its sales analysis and growth.
Alaya F wears Nykaa Fashion's Twenty Dresses in New Campaign
- Anchit Nayar, the CEO of Nykaa, in his media statement said Nykaa is like a fifth member of the Nayar family. For them their 3000 employees and 300000 shareholders are part of Nykaa too.
- When asked about the challenges for Nykaa in the future, he replied that Nykaa has grown up along with competition in the industry. Marketplaces in India already know that beauty is good business along with being a disruptive one.
- Anchit shared that t Nykaa faces the challenge of being misperceived as a makeup company. However, makeup is just 30% of their business and retails contributes to about 70%.
Appario Retail, Cloudtail India and More Retail Experience a 38% Surge in its Sales
- The combined sales of Apparioel Retail, Cloudtail India and More Retail have crossed Rs 36,000 crore this pandemic fiscal year which is about 38% higher than the previous year.
- Samara Alternate Investment Fund and Amazon, who jointly own More Retail’s holding Witzig Advisory Services have infused 400 crores capital in the business.
- In contrast to these online Amazon sellers, brick & mortar stores such as Reliance Retail, Spencer Retail etc have shown a decline in their sales in FY21.
Ecommerce can Enhance India’s Exports
- Focusing on MSMEs to leverage ecommerce can enhance India’s exports as MSMEs contribute for 1/3rd of India’s GDP. The D2C model enables sellers to directly sell globally either by having their own online presence or by signing up on online marketplaces.
- Empowerment of ecommerce trade of MSMEs can help overcome entry barriers such as market access, huge investments, dependencies on intermediaries etc.
- Thousands of MSMEs are benefiting from rising popularity for ‘Made in India’ products across the globe in categories like textiles, herbal products etc.
Zomato to Make $500 Million Investment in Grofers
- Zomato will soon make the largest investment in food delivery platforms by investing $500 in Grofers.
- The deal will extend Zomato’s battle with Swiggy as a food delivery and a restaurant discovery platform.
- Although no confirmation has been made by any of the companies over the same, the deal will hike 30% holdings of Zomato in Grofers.
Myntra Collaborates with ‘The Collective’ to Launch its Luxury Store ‘Myntra Luxe’
- Myntra has collaborated with ‘The Collective’ to make global leading luxury apparel and accessory brands available under Myntra Luxe.
- Sharon Pais, chief business officer at Myntra, said that the pandemic has resulted in increasing demand for luxury brands on its platforms. Myntra’s luxury will ease the access of these brands to the shoppers.
- Amit Pande, brand head at The Collective added that the partnership will extend its reach and bring The Collective experience to Myntra ‘s top customers.
Open Network for eCommerce: Beneficial for all?
- Inspired by the successful Unified Payments Interface (UPI) which has democratised payments in India, the Union Government is planning to experiment with such a platform in the eCommerce space.
- Open Network for Digital Ecommerce (ONDC) is aimed at providing a level playing field for all merchants. Currently eCommerce in India is perceived to be dependent on just a few large marketplaces.
Pros of E-vehicles in eCommerce Delivery.
- BigBasket, was the first company in India to introduce electric vehicles (EVs) for last-mile deliveries. Recently, bigger players have begun to adopt EVs as well.
- The recently launched Shoonya campaign calls for accelerated electrification of last-mile delivery.
- If adopted could not only reduce environmental damage but also have around 15% of annual last-mile costs curbed.
eCommerce may Face Cut-throat Competition after Singapore’s Shopee’s Arrival in India
- eCommerce players in India such as Amazon, Flipkart, etc may see a tough competition from Shopee, Singapore’s eCommerce giant.
- Shopee just after a month of its arrival in India achieved 1 million app installs followed by 100,00 orders in a day. It has partnered with Delhivery and Ecom Express for its offerings and runs four sales in a day.
- They have been known to overtake existing eCommerce giants in quite a few countries with their strategy.
- Shopee’s spokesperson informed that their local team is focused on understanding the needs of local communities and is even assessing how their global experience can help local small businesses in India.
Indian Startup Working with eCommerce Companies Soon to Start Drone Deliveries in India
- Skye Air, a startup firm working with eCommerce companies, said in a statement, “After the Indian government permitted the use of unmanned aerial vehicles, India may soon see use of drones for commercial deliveries”.
- The company estimates that Indian businesses will take two years for a complete rollout forf integration and large scale of industrialization of drones.”
- He further added that drone delivery can face issues of feasibility, as some of the new residential complexes have helipads to facilitate drone operations, but the older spaces may need some improvisation.
XPDEL, LA-based eCommerce Fulfillment Network-, Now in India
- XPDEL,a Los Angeles (USA) based eCommerce fulfillment company has recently entered Indian markets. They aim to begin operations in three markets- Delhi NCR, Mumbai, and Bengaluru.
- The company aims to provide a range of technology enabled solutions for India’s eCommerce market.
- Besides this, they have plans to expand further to 20 more marketplaces by 2023.
OPINION: Both eCommerce & Physical Retail Need Support
- The Indian retail market has been experiencing a conflict between large eCommerce platforms and the vast brick and mortar retail network for a while now.
- The conflict compelled the Consumer Affairs Ministry of India to draft new eCommerce rules a few months back which asked eCommerce platforms are asked to curb ‘flash sales’ & heavy discounts
- However, another perspective is that both physical and eCommerce retail need support. To explore,
