The Importance Of Cross Border Ecommerce For India
Cross Border eCommerce has taken the world by storm and it is mostly driven by sellers from China, USA and Europe. There is a good reason why sellers from these countries have identified the opportunity presented by this cross border online trade faster than sellers and manufacturers from, say, India. These countries in themselves are aggressive global leaders in manufacturing, innovation and have global ambitions to start with. So, it stands to reason that sellers from these countries would feel more comfortable exploring the world in search for greener as well as unexplored markets. In comparison, India is a relatively less aggressive and newer entrant to race to become a global economic powerhouse. However, of late, we definitely have made great progress and it is time that sellers start taking advantage of the fruits of India’s increased global presence.
2 things to be done correctly
- The government needs to establish strong connections with other markets in order to decrease trade levies and increase Cross Border trade. The government also needs to set its own house in order by enacting the right laws and then systematically implementing the same.
- The sellers need to grow a global ambition and the follow it up by an increased understanding of the world we live in, in order to better serve more mature markets. This implies an overall increase in capacity and capability as well as an intrinsic change in actively looking to create global brands.
The Indian Government’s Make in India strategy has created some benefits for manufacturers and small scale industries who look to increase their technical and manufacturing abilities. Another point needs to be strongly reiterated. India, unlike USA or China, has a very old and well-established manufacturing base which has long enthralled the world in its finesse and artistry. India’s artisans create products which are revered worldwide and this is not easily replicated elsewhere unlike other manufacturing industries which may be replicated given the right technical knowledge. India does have its shortcomings when it comes to electronics and related products manufacturing, but the recent reports show a strong increase in that sector. Manufacturing of home and beauty products is another sector where India holds a distinct advantage.
As I have explained, Indian sellers do stand a very strong chance of being successful in a global market given the right support. The laws are still not fully implemented to support SMBs selling to a global market, but they will be modified soon. The supply chains and payment pipelines already exist and only need to be properly modified to suit the model you wish to deploy. Cross Border eCommerce is already a $300 billion market and Indian sellers captured a minuscule $2.8 billion of that market in 2015, little less than 1%. China is leading the charge in this segment followed closely by USA and European sellers. Sellers from Taiwan, Malaysia, Vietnam are catching up very fast. By 2020 Cross Border eCommerce will be a $1 trillion market and it is imperative that the process to capture a large part of this value starts today.
Governmental change in laws and their implementation will follow the charge from the manufacturers and sellers as is only expected. Indian tradesmen have been plying the high seas for centuries and Indian manufacturing has been known worldwide for millennia. It is time to follow in the footsteps of our forefathers and benefit from the immense potential unveiled by Cross Border eCommerce.