India: The Growing Ecommerce Giant

India: The Growing Ecommerce Giant

 
India is one of the high growth developing countries set to make major gains in the near future. One of the booming sectors in India is ecommerce, set to hit $56 billion within ten years.

However, India poses a unique challenge to businesses wishing to engage in online retail. Indian laws prohibit foreign controlled companies from selling products online, only domestically owned companies have that privilege. To work around this barrier, corporations operate online marketplaces where local merchants can sell goods. As a large proportion of Indian retail is through Mom and Pop shops, this is an effective technique to empower businesses that haven’t taken advantage of ecommerce, while generating high commission profits for the online platform.

Wal-Mart’s Indian wholesale retail business, Best Price Modern Wholesale, just launched an online platform for its B2B customers. The aim is to grow their online presence, while providing more delivery and payment options for their customers. Due to India’s strict commercial laws that prevent foreign companies from setting up shop to compete with local retailers, Wal-Mart had to create a joint venture in 2007 with local Bharti Enterprises.

Original infographic from: DigitalRiver.com