Internet’s Rising Growth Influencing Online Rural Shopping
The internet is increasingly playing a pervasive factor in India’s commerce, and its influence is bound to expand both urban and rural consumers affecting their online rural shopping behavior.India’s internet users to reach 627 million in 2019 on account of fast internet growth in rural areas as revealed by market research agency Kantar IMRB. 97% of users use mobile phones to access internet
Increase of Mobile Devices In Rural India
Of the total internet users 42% are women.In urban India, the internet usage grew by 7 %. While the rural India witnessed a digital revolution where the internet usage grew to 35%.
The internet penetration in rural India has increased from 9% in 2015 to 25% in 2018 which has boosted the online rural shopping.
The following reasons have bridged the digital gap between urban and rural India and made a positive impact in online rural shopping.
- Increased bandwidth.
- Cheap data plans
- Increased awareness because of government plans.
The 200 million rural folks who have same aspirations as their urban counterparts have become a viable market to be reckoned with. They have caught the eye of large Indian e-retailers and startups who are working their way towards the Rubans by targeting rural areas. Rubans – same aspirations, different platforms
It is interesting to know that nowadays internet is widely used in small towns and villages where in the users are accessing the internet daily to meet their entertainment and communication needs at the same time indulging in online rural shopping.
With the advent of the internet, India has seen a kind of revolution in the online shopping market as many Indians are moving online – purchasing everything from apparel to furniture to dog food to electronics to what not. The massive eCommerce boon has changed the way urban Indians shop and is slowly but steadily changing the shopping landscape of rural India too.
E-retailers Are Reaching Out To The Rural Population
- The eCommerce biggies like Snapdeal, Myntra, Jabong, Voonik, Amazon, Shopclues, Flipcart are earning good revenues from villages.
- India Buys is an assisted eCommerce startup which allow people in villages to buy products online.
- Due to the eCommerce boom and rise in rural internet users many startups are successfully operating in the rural market.
- With cash on delivery options the future of the eCommerce sector lies in the rural India.
- India Buys is an assisted eCommerce startup which allow people in villages to buy products online.
- Wallet and payment apps like IPay are empowering rural people with eCommerce technology and processes, besides offering cash payment and fulfillment option to e-merchants.
- Moreover, the customization and distribution centers have made the process of delivery much flexible.
Related Story: Right Mobile marketing Strategy For Rural India
The Government Has A Big Role To Play
- The ‘Startup India’ initiative by the Government of India has made it easier for new startups to establish themselves and it is bound to have a larger impact on the rural market.
- Also, many eCommerce companies have tie-ups with the Indian government to offer services in rural areas.
- E-commerce operations are now covered under the Consumer Protection Act, 1986.
- Government’s efforts of granting internet access at community service centers (CSC’s) are bringing villages online.
- Under BharatNet the government has set up over 43,000 Wi-Fi hotspots in rural areas under WiFi Choupal Scheme.
- These WIFI hotspots are in 7,183 gram panchayats in 12 states and the union territories Bihar, Chandigarh, Chhattisgarh, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Puducherry, Uttar Pradesh, Uttarakhand
Indian Postal Service Tie Up With eCommerce Companies
The Indian Postal Service is reliable, cheap with a wide network in the world in the world with 154,965 post offices of which 139,067 are in rural areas lending a vast infrastructural network to eCommerce companies as most of their deliveries are done via India-Post.In the past two years the 160-year postal service has tied up with 400 eCommerce companies to deliver a range of goods.
And so does Indian Postal Service
Amazon India is able to service over 19,000 pin-codes through 140,000 post-offices across all 35 states and urban territories through India Post’s extensive network states Samuel Thomas, Director of transportation at Amazon India.
BSNL Is Also Connecting India
BSNL is supporting the Digital India initiative and providing Wi-Fi hotspots in the rural exchanges. While reliable internet services through hotspots are being ensured in the rural pockets, BSNL has also partnered with Facebook to create 100 Wi-Fi hot-spots in rural India to drive digital penetration. Apart from providing landline, broad band and mobile connections, BSNL is providing enterprise business solutions to the State and Central government organizations, PSUs and banks.
Rural Distribution Model
Amazon and Flipkart have roped in localities to deliver orders in and around remote districts. The pilot project has helped the eCommerce giants to drop delivery time from a week to 2-3 days and the local distribution centers enable companies to bridge the gap between demand and supply.
Rural India Is Shopping Online
Rural users are looking for the same things on the internet as an urban user, and the shift is likely to increase online purchases from rural India. So, it will not be wrong to say that anything that sells in the urban market sells in the rural market too.
Rural markets are becoming a battleground for e-retailers. It is important for both new entrants and established players to understand the shift and plan their strategy accordingly.
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