India is still responding to the Alien Invaders of Amazon and Wal-Mart into the retail and consumer sales marketspace.
The Indian government is sponsoring the Open Network for Digital Commerce (ONDC) with inputs from leading India tech entrepreneurs and interests. Other possible stakeholders include banks, financial services, telecommunications, and logistics providers. A group of banks/fintech have already declared their intent to invest more than USD$30M into ONDC development.
The Indian consumer and retail markets are estimated at USD$1T as a major component of the Indian economy. Although spending per capita is small (< USD$800) ONDC wants to be the dominant platform for Indian eCommerce in 5 years looking to serve 2/3rds of all consumers and 1.2M sellers. The goal is to reach 25% of purchases (worth USD$350B by 2030) of buying from a base of 8% of purchases (worth USD$55B in 2021) currently.
The objective is to wrest control from the 60% eCommerce market share held by Amazon and Walmart/Flipkart.
The phenomenal growth of the National Payments Corporation and Reserve Bank of India sponsored Universal Payments Interface (UPI) in participation (banks, apps), uptake (consumers), and transaction volume (gigantic) points to optimism on possible success for ONDC. Key objectives are equal access to buyers by all types of sellers, comparison shopping between sellers, and “interoperability”. Providing a platform marketplace across ONDC is the mechanism chosen to achieve these objectives.
The ongoing resistance to Alien Invaders has been discussed here. The complicated legal actions see Future still engaged in legal resolution with Amazon in multiple venues. Prior reactions to block deeper penetration of Amazon and Walmart/Flipkart have included allegations of market abuse and market role participation. Attempts by different parties to gain advantage in Indian retail and consumer sales will inevitably change the distribution and fulfillment of goods.
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