According to Forrester, the Indian eCommerce market is expected to grow at a CAGR of over 57 percent between 2012 and 2016, which is the fastest within Asia-Pacific region. In India, 53 companies have raised $853 million in the past three years – see report. This covers only institutional investment and not angel and other forms of investment.
So considering all these growth and investment numbers, how are they doing? Those capitalized – swimming, and those who don’t have access to deep financial backing – sinking. There is no treading water, it is sink or swim.
According to a recent article in Hindu, a nation publication in India –
Myntra, for example, has taken in over $40 million in venture funding over the last six years and has an estimated annual revenue run rate of $100 million. It is looking to break even hopefully by the end of the current fiscal year. Flipkart’s situation is, perhaps, more precarious.
With mushrooming number of eCommerce companies, are they pocket of opportunities and niche segments where eCommerce companies can still grow? Yes, and the future belongs to growth hackers – the new heroes in the online marketing space. Growth hacker and robust marketers have an important role to play and contribute to this burgeoning market. Few thoughts in our view of this space and what companies can do –
Thy shall know thy customer – Find your niche segment, know it, and drill down on it. Although, eCommerce is a growing market, there is only limited number of people buying online at any given point. And, everyone is going after them. To get to the right group, you need to segment and understand your customer to the Nth degree. Hence, the growth hacker loop – ideation, segmenting, A/B testing, data analysis and more analysis, implementing and again the same loop.
Hangout where YOUR CUSTOMERS are hanging out – Facebook is not answer to all social media universe. There is evolution of more niche networks, tools and communities for your products. Pinterest is a great example of a evolving social network for ecommerce player.
In Dec 2012, Facebook made up 92 percent of the ecommerce social traffic and Pinterest was only 6 percent. In April 2013, Facebook made up 69 percent and Pinterest grew to a whopping 25 percent.
Source: Marketing Charts
Here’s how Pinterest impact’s online sales and on Shopify – http://www.shopify.com/infographics/pinterest
The point is that the landscape is rapidly changing and evolving, so find you need to constantly monitor where your customers hangout and you need to hangout with them. Other noteworthy and growing platform – Whatsapp (mobile).
Automate – Once you figure out what works, automate it. Revisit, reiterate and automate again.
Lastly, here’s a Growth Hacker Tip – 6 Essential Google Analytics Features for Every Retailer by Practical eCommerce.