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Globally, the e-commerce industry has recorded strong growth over the last two years, as more shoppers turned online during the global pandemic outbreak. The global e-commerce industry is projected to record strong growth over the next three to four years, and because of this, competition among players is expected to intensify from the short to medium-term perspective. With more and more e-commerce marketplaces seeking to boost their market share and drive customer acquisition, players are continuously investing millions of dollars to enhance the customer shopping experience.
Notably, the metaverse has turned out to become a key focus area for e-commerce providers globally as they seek to enhance the customer shopping experience, and the trend is no different in India, where the e-commerce industry has grown leaps and bounds over the last few years. For instance,
To launch an immersive and interactive experience for shoppers, Flipkart entered into a strategic alliance with eDAO, a Polygon-incubated firm. The metaverse experience will allow customers to collect loyalty points, Supercoins. Furthermore, shoppers will be able to collect digital collectibles from partner brands when they shop on the platform. Notably, Flipkart has forged alliances with eleven brands, which include Puma, Noise, Campus, VIP, and Lavie, among others, to set up experiences in Flipverse.
The launch of the metaverse experience comes at a time when Flipkart is competing with Amazon to gain market leadership in India. Notably, Amazon and Flipkart have been consistently broadening their offerings to attract new shoppers and retain existing customers to boost market share. While Flipkart has turned to metaverse to attract shoppers, Amazon is looking at social commerce to drive its user base and revenue growth in India. In September 2022, Amazon launched QVC-style live streaming shopping capabilities in the country.
With the immense potential of the metaverse, the future growth of the e-commerce sector might get largely influenced by immersive technologies. Consequently, TechInsight360 expects more e-commerce players in India to adopt the metaverse and innovate in the space to drive the growth of their business. Globally, several leading e-commerce players have already adopted the metaverse and launched immersive shopping experiences for their shoppers. For instance,
Apart from these e-commerce players, several firms across industry verticals have entered into the metaverse space. These include fashion giants, department stores, automobile firms, and many more. As the metaverse becomes more mainstream over the next three to four years, TechInsight360 expects more players, including the ones in the e-commerce sector, to invest and innovate in the emerging technology. This is projected to further drive the growth of the e-commerce industry as well as the growth of the metaverse market.
While the amalgamation of metaverse and e-commerce in India has huge growth potential, the slow internet connection speed, especially in rural areas, along with a lack of awareness of the immersive technology can hinder the growth. Consequently, TechInsight360 believes that investment in creating awareness about the technology and how metaverse can enrich the shopping experience of customers can help players to fully capitalize on the growth potential of the Indian market.
TechInsight360’s reports combine detailed view on market opportunity, best practices, emerging business models, and market innovation to help clients identify unique opportunities.
