Online Startups - Will they change the way Business is done in India?
Posted in Operations & IT Articles, Total Reads: 1323
, Published on 18 May 2015
Online Startups, is the buzz word in today’s digital era. I would like to give a pre-context of what this ensemble is all about and how this will pave the way in taking the business in India into newer channels. On jolting my memory, I can say a decade has passed in this field of business and success is touching the doorsteps in the near times. All of us might have heard the names of online giant, Alibaba from China and the recent IPO which has mesmerized the world being the biggest number game paving the base of potential in the online sector to make money.
Coming specifically to India and throwing light on the Indian Startups Flipkart, Snapdeal are the two names which have ruled and continue to rule this Indian segment. A valuation of $7billion for Flipkart and $10 billion for Snapdeal is shouting the credentials of changing business in India. Recently, Japan’s Softbank is the largest investor in Snapdeal with 700million$ investment and Flipkart attracting a huge lump sump of the money from other PE funds. Investor, FDI and FII are pouring money into these startups seeing the trustworthy face of Indian economy and the positive vibes showered by the new government.
I feel last 5 years the consumer buying trends and the coming 5 years the same will see a drastic shift towards the digital movement being prolific. People prefer more and more online virtuoso with the business attire wearing the online shoes. In the next 5 years, the major buying and selling will be online. Be it Quikr, where people buy/sell or be it online sites to buy/sell any kind of commodities will be the platform mediating the business.With the Modi government leading India and promising to fuel the economy to greater heights, digital mantra is a core requirement and support by the leaders in the center.The shape of Indian business is going on wheels and the bricks and mortar model is changing with the online trends pouring in. As per a report by KPMG, it is seen that the number of entrepreneurs in India is emerging day by day and is going to be high in the coming years with a large portion catering to the online business segment. And why not, Online business is easy to start with zero capital and a descent enough idea will help you make fortunes.
Passing by the newspapers these days I have seen that, the shopping complexes are coming up with new and diverse makeovers to attract consumers from the changing retail to online trends.So, a launch pad of business new face is standing high and the future lies on its proper compliance by all the stakeholders.
This concept of online well-being is a fairly new concept in India compared to the rest of the world. Indians are usually born and brought up with the touch and feel environment and the digital space is although luring in the short term but its existence in the long term is still a question to ponder on. West countries have been seen this business regime for quite some time and the mentality is being well accustomed to the people within. But coming to Asian countries, specifically India, a herd mentality with a short term shift to the online trend but its compliance is to wait and watch in the days to come.
While writing about the online boom, it is very evident that the dot com boom of the 1990’s - 2000’s is a must talked about comparison and should be highlighted with proper significance. I totally will not say that these both eras are similar even though there is a major backbone supporting both of them which is their online presence and the base requirement. One major and outstanding difference which I observe between these eras is the changing consumer trends, and the psychological inhibitions in the young generation of today’s world and the days to come. People are far more technically savvy and I feel are more capable and level headed to handle the new ways of turning the business in its new shape. Maybe the difference I pointed out is a thin line between the two eras but the entire mentality and trends nurturing this business are a key revolving point and proper introspection is required to understand the changing complexities today and in the days to come.
To conclude, I would like to say that I have expressed my thoughts in a nut shell but the points highlighted are the key to the changing business trends and I am optimistic with the Indian consumer patterns changing, the online startups is the next big thing in the business context.
This article has been authored by VijayShankar from SIBM Bengaluru
Economic times, Mint , Times of India, Money control and KPMG,Delloite and Bofa Reports