India Wholesale Sector and Online B2B Market. India’s fast-growing wholesale sector is valued at about $300 billion and is forecast to grow to $700 billion by 2020. The industry included more than 958,000 companies, mainly small establishments, employed about 10 million workers, and generated 6.3% of the nation’s GDP. Large companies in major Indian cities can supply customers with a wider range of goods and in more markets, but in Indian rural areas, smaller distributors can compete successfully by carrying fast-moving consumer goods (FMCG) or providing add-on services. In the Indian wholesale market, there are broadly said three types of wholesalers: Traditional Wholesale Markets, like Khari Baoli (spices) or Burrabazaar (textiles). Modern Wholesale Stores such as Metro, Wal-Mart and BestPrice. The Neighborhood Wholesalers all around every city in India.
India’s e-Commerce: Online Marketplace for Exports
The next big thing in India’s e-commerce industry: is an online marketplace for exports based on Alibaba model. In what could be a first for any country, India plans to set up a business-to-business international eCommerce platform exclusively for the country’s manufacturers and exporters to sell their products to overseas vendors. The portal, which is being developed on the lines of Alibaba.com, will serve as a one-stop shop for importers in other countries to buy every product that is made or value added in India, from needles to cars. The idea is to help make India a sourcing hub and get the country’s exporters access to all foreign markets, which will revive falling exports and encourage ‘Make in India’ and ‘Skill India’ initiatives of the central government. India Brand Equity Foundation (IBEF), a trust set up by the commerce department, is building the online platform, and it will own and maintain the digital property related to this portal.
India Wholesale and B2B eCommerce Platforms
The potential to do business in the online wholesale space in India is huge. India continues to have old-style inefficient wholesale markets, and the opportunity is big in this area. The Indian B2B market is estimated to reach close to $400 billion within short time and with medium and small enterprises enjoying a substantial share of it. Some of the present major Indian B2B sites are, IndiaMart, TradeIndia and eIndiaBusiness. In the near-term, observers believes 50 per cent of the total wholesale business will become internet-based. Other well-known firms are paying attention to this segment as well. Amazon launched a website for small business owners and traders in India to procure supplies. Wal-Mart has scrapped all plans for retail stores and is recommitting to India as a wholesaler. And Alibaba gets ready to cast its B2B online influence further in India.