India’s children e-commerce industry is still in its infant stages. While e-tailing in general is taking up 29% market share, the kids segment has procured 2%. In 2012 the future for online kids e-tailing looked bright as Firstcry, Hushbabies, and Babyoye, had raised a combined $30 million. Now, Babyoye has been acquired by Mahindra Group, little profit is being made due to logistical issues, and new competitors are budding in the marketplace.
Nevertheless, e-commerce in general is growing fastest in India within the Asia Pacific Region. According to the latest report by IAMAI and IMRB International, the Indian e-commerce industry is expected to grow at a rate of 33%! Not only this, but the industry is estimated to cross $16 billion in 2015 and $56 billion by 2023; the future of e-commerce in India is nowhere near bleak.
The growth of e-commerce must mean growth in the kids e-commerce industry. With competition becoming fierce, kids retailers should be aware of and attacking a few of these factors hindering growth.
Cash on Delivery
Indian markets have yet to warm up to credit cards, let alone supplying credit card information online for online retailers. The preferred cash on delivery transaction creates inventory and logistical set backs for many e-tailers. Being aware of this and planning ahead for it might save your e-commerce business big bucks.
Personalization & Branding
Many current kids’ e-commerce sites are based off U.S. dominated Diapers.com. But, that’s not working with Indian mothers. Marketing is difficult and not financially maintainable as profits are bleak in the industry. So, how do you acquire and keep customers?
Give mothers options!
Delivery options: pick-up locations, direct door delivery, how quickly items to be delivered.
Customizing options: customize clothes, color, size.
Mothers care for their children and want the absolute best for them so brand your products in an elite way. Is it quality? Is it the high prices? Why your items over a similar looking t-shirt sold in the market?
Mobile. Mobile. Mobile.
Need we say more? 70% of online shopping is happening on mobile! Consumers are busier than ever and in India owning a smartphone is much more likely than a PC. Is your kids e-commerce site mobile friendly? In fact, perhaps you should consider going mobile-mainly.