HOME SHOPPING MARKET ANALYSIS

Market Challenges And Opportunities

Global Home-Shopping Market Drivers:

Increasing penetration of internet is projected to drive growth of the home-shopping market. As per the International Telecommunication Union (ITU), globally, the internet user base stood at 3.5 billion in 2017, which reached 4 billion in 2019, internet penetration in India grew from 18% in 2014 to 50.52% in 2019, as per the India Brand Equity Foundation. Similarly, as of March 2020, about 64.5% of the Chinese population had used the internet, which was earlier at 38.3% in 2011, according to the China Internet Network Information Center.

Growing government initiatives to promote e-commerce sector is again projected to augment market growth. Since 2014, the Government of India announced various initiatives, namely Digital India, Make in India, Start-up India, Skill India, and Innovation Fund. The government has also planned to set up 500,000 Wi-Fi hotspots for providing broadband service to 50 million rural citizens.  The government has also allocated Rs 3,073 crore for the Digital India Mission in 2018-19.

Global Home-Shopping Market Opportunities:

Increasing adoption of AI and machine learning, virtual reality, and augmented reality in home-shopping is expected to offer significant growth opportunities for key players in the region. For instance, For example, IKEA uses VR Experience to provide an in-app virtual shopping experience. Similarly, Lenskart app (India’s leading optical prescription eyewear retail chain) and website both support the '3D Try On' feature, which shows a prospective buyer how a frame looks, like on the person’s face, to facilitate purchase decisions. Similarly, Burrow, a DTC furniture brand, uses AR to help customers visualize how their couches will fit in their living rooms.

Ecommerce companies are increasingly using newer and more convenient payment options, such as, Apple Pay, Paypal, and other financing options, that allows frictionless checkout. Moreover, key players are also adopting the subscription model for maintaining customer for a long-term value.

Global Home-Shopping Market Restraints:

Limited infrastructure in developing countries is expected to hinder the market growth over the forecast period. Unstable power supply, inadequate human expertise and skills, poor connectivity, and limited bandwidth restrict the deployment of e- commerce.

Increasing instances of frauds in online shopping is expected to limit its adoption among consumers. Also, delay in delivery is another key factor expected to hinder the market growth.