A momentous occasion for the growing e-commerce market in India. Backdoor entry to the Indian retail sector. The $16-billion deal between Walmart and Flipkart evoked varied reactions ranging from optimism to scepticism across industry spectrums. Such reactions are normal because Indian has never seen such a magnanimous acquisition before. The deal is even being touted as the largest e-commerce deal struck world over. So, the ramifications of the deal will be huge in India, as Indian e-commerce market is expected to exceed $50 billion in 2018, as per the Assocham-Deloitte study. And, such will be the pace of growth that the market size is likely to touch $230 billion by 2025. Speculations are rife that the fast-paced growth will help the market achieve that magic figure by 2021.
It’s quite that the e-commerce will become even more competitive as Flipkart and Amazon now control 70% of the market share. As Wallmart has paid $16-billion to buy 77% stake in Flipkart, the US multinational retail giant will be extremely aggressive in the market to garner larger market share. And that’s where lies a huge opportunity for the PR firms to cash in.
Visibility, favourable consumer perception, product promotions, regular stories, crisis management – all will become even more crucial for the all the e-commerce players and various product brands in general when Walmart-backed Flipkart will take a fresh guard in the market. At the moment, e-commerce constitutes just 5% of the entire retail market in India. However, the market size will experience rapid growth if there is an increase in the number of transactions, value of transactions and market penetration. And, PR is extremely mission-critical in achieving those goals.
For a country which is as diverse as India, PR becomes even more crucial to get the message across to the consumers. So, with the competition set to become more intensified in days to come, PR firms can expect to bag some more e-commerce clients. Because existing e-commerce will now align their marker and PR strategy to stave off the competition. One can expect a lot of activities in the e-commerce market in terms of mergers and acquisitions, brand-repositioning, market consolidation, etc. So, those will definitely be translated into more opportunities for PR firms to work closely with this happening sector. Consumers in India especially beyond the metro cities are gearing up to the new click-and-buy type of shopping mode. Effective PR can actually accelerate that transformation. So, PR could be the new industry growth-engine.
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