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Re-imagining Local Commerce

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The evolution of Mobile and Internet has transformed the consumer behaviour around the world. E-Commerce made it easy and convenient for people to browse catalogue, compare products and bag eye-popping discounts from the confines of one’s home with the power of touch.

E-Commerce growth resulted in innovations in logistics technology and infrastructure. Innovation in logistics resulted in a new breed of smartphone based, hyper-local ventures which brought local retailers on board to service consumers in quick time.

They deliver everything from groceries to mobile phones to medicines in a few hours sourced directly from the supermarket next to your home. Today, E-commerce giants are finding themselves increasingly vulnerable to the on-demand businesses built on the back of hyper-local logistics technology, a mobile-first consumer experience and local retailer partnership.

local commerce

Logistics driven hyper local businesses whether in B2B space or B2C is controlled by three factors?—?unit economics of hyper local fulfillments at scale, total supply from network of retailer partnerships and local demand.

You bet it will become increasingly tricky and “power of execution” will become the key differentiator when players will have to do these things at scale. This is one of the major reason that we see a vertical fragmentation in this space to reduce the operational complexity and lower the entropy.

Even though industry is observing exponential growth both in E-Commerce and On Demand businesses but neither of them capture the long tail because their supply is limited to the seller/retailer partnerships, after all these are managed marketplaces. We need to go beyond managed online marketplaces to completely distributed marketplaces.

Distributed Marketplaces that empowers 13 million small and medium retailers in India and matches local demand with supply. These local retailers use the distributed marketplaces to do active commerce via mobile and internet and convert 520 million daily customers to shop locally.

This not only lowers the barrier to entry to creating wealth but also results in an optimal producer-consumer equilibrium that can have ripple effect across the whole economy as local consumers spend billions of rupees digitally and locally.

The future of e-commerce, in India, is mobile commerce that matches the local demand with supply and establish strong network effects by empowering local retailers.

[box type=”shadow” ]About the Author: Ram Singla is Founder & CTO PayMango.com, a local m-commerce marketplace and is on a mission to empower local businesses[/box]

  1. Avinash Seth says

    agree with the blog post, and our website wahapar.com is doing exactly same thing giving them online visibility so buyers can easily find what they want in their city itself

  2. abhinav says

    I am in total agreement with the article as it not only throws light on the market economics but also extends further describing the future of local commerce which is going to evolve in future to balance the forces that might have given rise to a trend for short term but may not be able to stay put for a longer time as the pyramid of cards is going to fall apart one day caused by the disruption of technology and consumer behaviour change .

  3. PayMango says

    Thanks for putting your view point, but m-commerce and e-commerce cannot be totally called as irrelevant as after there inception whole masses have got shifted to these platforms coz of the convenience they provide, so they certainly hold huge potential in future as well and are booming extensively at a rapid pace. Also, experiments do get success, which these sites are proving positively, that’s why sales graph, demands & ultimately profits in these sectors are touching high skies. More & more people are switching to online shopping only.

  4. Mohit Singla says

    I am not agree with the above article. Coz i think Mobile Commerce Sites like Flipkart.com or other eCommerce are REALLY in profit in India or not. Even they are playing with the mind strategy of the Buyers who needs only discount. Just do a one experiment and try to sell the products with any discount on flipkart.com, snapdeal.com and amazon.in too, and see you dip in the sales graph. According to me later on may be after 3-4 year again the retailer market will take boom as compared to eCommerce market. Coz they are only playing on discount not on the reliable customers. On the other hand a retail counter or shop always have their own regular customers. Most of the People are Buying coz Only they are giving heavy discount, and Sir can you check how of many persons are using their card for the online shopping against COD.

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