Disclaimer:
We recently went through a report from ONDC which comprehensively analyzed all the essential components of ONDC by stating valuable insights and in-depth information covering all the vital factors. Through our blog, we have summarized the report taking the crucial points by precisely adding them to our blog.
The Age Of Digital Transformation
In India, we have smoothly and steadily transitioned into adopting digitalization into our daily lives. India’s rapid digital transformation over the years has now become prominent with the paradigm shift of offline/cash payments to online payments (UPI transactions), adoption of 5G internet, multilingual conversational AI, and many such changes have paved the way for betterment in various sectors like healthcare, logistics, transport, financial services, etc. However, many buyers and sellers face many challenges in online facilities, including trust issues, fearing online transactions, and lack of digital knowledge.
ONDC sets a clear and transparent vision which aims to provide an “Open network for digital commerce that will make way for an inclusive online space, thus providing opportunities for everyone.”
ONDC’S Leap Into Boosting The E-commerce Market
ONDC is an initiative to revolutionize digital commerce in India. It transforms the diverse and cluttered Indian bazaar into a convenient platform for buyers and sellers. It aims at providing a viable platform where buyers can search for their requirements and get multiple results through the registered sellers on the ONDC platform via any seller app, making it reach a broader customer base.
What Is ONDC?
ONDC is a service-oriented online delivery platform that sells products from different categories, including food, grocery, home décor, etc. It is set to enhance the way we see E-commerce and elevate it to another level.
Different Use Cases Of ONDC In Various Sectors:
1. Grocery
India’s grocery sector represents 35-45% of consumer spending, approximately 400 billion. Although the online grocery adoption rate is currently as low as 1 to 2%. But ONDC has the potential to open the doorway of opportunities to all the local kiranas/shops and to transform their presence digitally by leveraging their sales and increasing their trade network.
The Possible Considerations Include The Following:
- To create demand
- Digitalize inventory through product availability
- Adopt to change smoothly
- Enhance cataloguing process
- Improve logistics potential
2. Fashion And Lifestyle
India’s fashion market has kept evolving and transforming rapidly, with 35% of the fashion market, of which 10-11% is now digitalized. The rapid growth of digital commerce has enabled big (popular brands) to give small independent sellers a platform to make sales in big cities and small towns.
The Four Possible Considerations To Enhance The Services In The Industry Are:
- Introduce innovative and interactive fashion-selling techniques.
- Aid sellers’ assistance to digitalize their industry
- Simply the return process effectively
- Enhance customer interface (Better user experience)
3. Electronics
Consumer electronics is a thriving segment with 32-34% of online transactions. Its market value is at $75 billion for (FY22), and its potential is estimated to reach $150 billion by 2023. ONDC aims to enable retailers from small towns/cities to expand their reach by widening their sales of electronic goods.
The possible consideration in the electronics sector includes the following:
- Generate D2C for brands
- Transform inventory into digital mode
- Imbibe logistics capabilities
- Supportive ecosystem for buyers and sellers
4. Online Food Delivery
The online food delivery sector is set to rise and grow per the prediction to $30 billion by 2030. ONDC can help the initiative and extend to smaller cities by expanding the kitchens, logistics, and delivery providers’ network.
Categories | Barriers | ONDC’s potential solution |
Restaurants | Incapable of making profitable digitalization
Unable to use customer data in the right way. | Use online mediums to expand business. Potential savings could be understood. Obtain detailed customer data. Digitalize transaction details and history. |
Logistics | The top 4 cities experience peak volumes.
Low demand concentration results in the cost of delivery fleet being higher in small cities. | Combine hyperlocal logistics to build up its demand.
Employment opportunity for neighborhood delivery partner.
|
Customers | Insufficient variety of restaurants. Online listed prices could be 30-50% higher when compared to dining prices. | Wide availability of restaurants/eateries for customers to choose.
|
ONDC Is Expanding Its Horizons Over The World
ONDC is currently being tested in India. However, it looks forward to expanding its potential and making its keen presence worldwide by addressing global challenges.
But Its Potential In The Global Digital Market Is Possible In Two Ways:
- Boost international trade.
- Accelerate and democratize digital business across all markets.
However, to derive the needful presence around the world requires them to face specific challenges and provide solutions to them by following the criteria that include:
- Payment settlements across borders must be executed without any disruptions.
- A strong complaint-handling system.
- Universal categorization
- Corporations among nations support e-commerce
Scope Of ONDC In Future
The future of ONDC holds massive potential to enhance its capabilities and reach new heights. The platform provides an innovative solution to the problems faced in E-commerce, opening doors to new opportunities for buyers and sellers. Moreover, it will be seamlessly convenient and efficient for all its consumers and grow on a larger scale with its presence worldwide.
If you are eager to learn more about ONDC, check the link below:
Content and data information from the blog and the images are provided (credits to the source from the report).
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