Digital Commerce Trends in 2023
Indian digital commerce space is substantially different
from other markets. Propensity and capability to purchase, Order size,
frequency of purchase, customer expectations vary widely even within various
geographies of India. Previous months of 2022 were tumultuous and underscore
the top 10 trends which will dominate this sector.
Movement towards Profitability
Business profitability will be a key focus for both marketplaces and D2C- Established marketplaces are controlling expenses to reduce burn and galore of start-ups are struggling to fund crunch continuous customer acquisitions at astronomical cost. This will continue to drive higher loyalty for brands with better customer propositions
Product innovation will take centerstage
New product introduction and product differentiation based on customer insights will take center stage. Value engineering will go to a different level as demand is already known at various price points in 2022; profitably producing the same product at established price point will gain momentum
Analytics will give deeper insights
Customer insights and analytics will get their right due and gathering meaning from data will increase. Jargon will give way to deep dive into data to get real actionable insights from it however small the size of data exists.
Omnichannel will gain momentum
Omni-channel commerce gathered sufficient momentum in 2022. This will accelerate in 2023 as it benefits both customers and brands. Branding and conversion opportunity at the point of sales is a big plus for brands struggling with higher customer acquisition costs through digital media. Brands get better inventory rotation, and the customer receives the much-needed convenience of quick deliveries.
Social Commerce will gain momentum
Big e-commerce players will aggressively integrate more social commerce on their platforms. Myntra, and Flipkart already did the same with Amazon's huge push of influencer lead product shopping on platforms. Independent social commerce platforms like Meesho, Trell, etc., are struggling to build customer trust as the majority of the customer experience is still beyond their control.
Direct fulfilment by Brands
Many brands will migrate towards direct fulfillment through the seller model. Better customer insights and complete control of warehousing, availability, and satisfaction are a big plus in this model. This is one of the most critical aspects vying for attention in 2023
Movement towards Profitability
Brands will migrate towards direct fulfillment by the seller model. This will help in getting better customer insights and complete availability and fulfillment control.
Technology adaption will gain momentum
Technology adaption will continue to gain momentum. Automation of marketing activities will increase significantly as digital channels proliferate substantially, leading to the management of consistent brand communication and messaging as the biggest hurdle for most brand managers.