Cross border e-commerce: Catalyst to US$ 1 trillion exports
The Trade Promotion Council of India organized an interactive webinar on “Cross Border e-commerce: A catalyst to US$ 1 trillion exports” on Wednesday, December 1, 2021 at 3:00 pm IST. The session discussed the true potential of cross border e-commerce, how the leading nations are adapting and how Indian policy and industry need to evolve.
Trade Promotion Council of India organised a webinar on Cross Border E-commerce, A catalyst to US$ 1 trillion exports on December 1, 2021 at 3:00 pm. The webinar focused on the growing trend of cross border e-commerce, India’s current penetration and potential in the area and how exporters can leverage this exciting trend to ramp up their international footprint.
According to Zion Market Research, global cross-border B2C e-commerce market earned revenue worth US$ 562.1 billion in 2018 and is predicted to reach US$ 4,195.4 billion by 2027, at a CAGR of nearly 28.4% during 2020-2027. Growing internet penetration, increased propensity for e-commerce, secure payment options and the rise in globalisation is fuelling this market and opening up myriad opportunities for sellers.
E-commerce is likely to be the fastest-growing segment in retail in India in the coming 5-10 years as growing its share of total retail from 3% to 10-15%. By implication, it is likely to play a larger role in India’s cross border trade and business. India crossed US$ 1 billion in exports for cross border e-commerce in 2020. Categories like handicrafts, home and linen, bedsheets, curtains, upholstery and apparel enjoy strong demand abroad.
The COVID-19 pandemic has precipitated a drastic shift in consumer behaviour in favour of online channels. Even as consumers are opening up to cross-border online shopping, companies are looking at strategies that can help them leverage this medium more effectively. SMEs get a vital route to expand internationally and even OEMs can bypass long channels to directly reach customers. Over 50% of customers used D2C for buying consumable or durable products during COVID pandemic.
On the other hand, companies have to tackle multiple challenges including lack of knowledge about regional tax regulations, compliance, data protection laws, payment and return related issues, returns, and import/export legislations. Customers cite issues such as high prices, delayed deliveries, low trust in terms of quality, etc.
Takeaways from the webinar
● Product/market opportunities in cross-border e-commerce for Indian brands, particularly SMEs.
● Payment-related issues, regulatory challenges like data protection, export controls, etc. across markets
● Policy and regulatory interventions needed to propel cross-border e-commerce in India
● Online channel strategy and how to build a direct-2-consumer (D2C) channel for cross-border e-commerce.
● Opportunities, practical problems and solutions, while promoting your brand across markets
● Technology interventions that could propel the growth of this sector in the coming future.
Following is the list of esteemed panellists for the session:
● Dr K Rangarajan, Centre Head & Professor, IIFT, Kolkata Campus
● Rajat Wahi, Partner, Deloitte India
● Venkat Nott, Founder & CEO, Vinculum
● Deep Bajaj, Founder & CEO, Sirona Hygiene Pvt Ltd
The session was moderated by Virat Bahri, Deputy Director, Trade Promotion Council of India and Editor, India Business & Trade.