The Biggest Problem Of E-commerce Development Is The Huge Indian Home Market Logistics

- Jul 11, 2017-

 Demand drives economic growth, which seems to be a constant development. It has been said that India, like China a decade ago, has brought enormous social pressure with a huge population base and a huge increase in demand. There is a huge amount of potential and explosive power in the market of 1.4 billion people. 

As the world's fastest growing electrical dealer market, not only electricity giant ali and the amazon will have "claws" into the Indian market, more new blue ocean platform dedicated to the seller for the world the nuggets India laid for the road ahead. 

Behind the huge incremental market, buried hidden high cost 


Sun hailong, head of the lions international exhibition, revealed that the number of companies entering the Indian market is very high and rising year by year. According to statistics, China's imports and exports to India totaled 81.82 billion yuan in january-february 2017, up 22.3 percent from the same period last year. Among them, India exports 631.9 billion yuan, an increase of 12.4%! 


Although India's population is large, "hidden costs are high, labor relations are tricky..." This is the annoyance that sun hailong has often referred to in India's export trade, e-commerce and corporate friends in India. 


In 2016, India was ranked 140th in the world per capita GDP ranking of the international monetary fund (IMF). India's infrastructure construction lags behind and severely restricts its economic development. India's manufacturing sector is underdeveloped, and it is unclear how well Mr Modi's government-driven "made in India" campaign will work. All this could affect China's e-commerce development in India. 


In addition, India market have a certain stereotype of made in China, their cognitive is made in Germany first, second in Korea and Japan, China, therefore always will be China's commodity price pressure is very low. The second is that China's exports to the Indian market are indeed of low quality, adding to Indian consumer perceptions of Chinese products. 


Demand has soared in various sectors, with demand for household and electronic products 


With the popularity of trade globalization and information globalization, cross-border sun hl think traditional enterprise transformation electricity greatly improve the efficiency of the enterprise, but also reduce the enterprise's export costs, this is a good way to boost the growth of trade, especially in the national "public entrepreneurship, peoples innovation" double gen background for some of China's foreign trade enterprises provides a good opportunity to contact with foreign customers negotiate. 


The market demand and purchasing power of the exporter India is similar to that of China 20 years ago, and the industries are developing rapidly. Lions international convention and exhibition every year come into contact with Indian buyers involved in all walks of life, including household building materials, auto parts, mechanical products, electronic and electrical products, tools, hardware products, medical products and so on. 


According to sun hailong, more and more enterprises are participating in the exhibition, and the market of Indian consumer groups is becoming smaller and smaller, and there will be a lot of market space in India. Indian e-commerce is concerned with household and electronic products, followed by clothing category. You can see Chinese smart phone billboards everywhere in the streets of India. 


In addition, India will also have some of the large product exhibition, such as mumbai, Delhi, auto parts, furniture plastic machine, mumbai and bangalore mumbai lighting, etc., the exhibition scale generally at about 5 square meters. 


Still unexplored "virgin land", logistics or the development of e-commerce is the biggest problem 


From alibaba to multinational giants like amazon to local companies such as Flipkart and Snapdeal, the Indian market is becoming the world's next big e-commerce battleground. A market of up to $25 billion, and keeping up to 40% a year, is still seen as a virgin territory. 


The main problem for Indian e-commerce is logistics, sun said. India has no such developed transportation system as China, no highways, no moving cars, not to mention high-speed rail, so the flow of the whole logistics is lagging behind. 


The biggest problem for China and other e-commerce sellers who want to tap the Indian market is logistics warehousing. With India's current traffic, short time can't change the traffic situation. It can only develop India's big cities in a short time, such as Delhi and mumbai. 


1.4 billion potential consumer market, and the use of intelligent mobile Internet users is high-speed growth, logistics and payment has not been mature and investment gap, thus attracting funds flocked to them, will want to "seed" in India this piece of fertile land. 

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