Indian ecommerce is over-invested due to sentiments and hype around it: Avnish Bajaj
27 Apr 2012

According to Avnish Bajaj, MD, Matrix partners India, the Indian ecommerce industry, in the short term  is over-invested which is due to sentiments and hype around it. “In the long term however, it is under-invested and there is a need for large amounts of capital to create strong, stable ecommerce businesses,” Bajaj added while speaking at Day 2 of the 4th National Conference on Digital Commerce organized by The Internet and Mobile Association of India (IAMAI).

“The major concern right now is that the capital is not being used adequately to create world class experience for the customers but instead is being used to lure customers in with discounts. This will change only when the ecommerce players and venture capitalists change their approach," Avnish Bajaj had added.

Speaking on what an ecommerce entrepreneur needs to deliver to customers, Anup Gupta, Managing Director of Nexus Venture Partners, said, “This is the decade for internet in India and there is plenty of capital available for differentiated business models. Entrepreneurs should focus on solving a customer need in a unique manner that factors in our local context rather than adopt a me-too approach.”

Rajesh Sawhney, Founder, SuperAngels of India, said "We are at the beginning of the investment cycle in the ecommerce space. There has been a lot of excitement amongst the investors and founders, which will see moderation in 2012. However, the sector will see continued investment and on-going innovation post this moderation. Now the smart money will seek true innovations and differentiation rather than copy-cat business models, which is exciting.”

Speaking on how an ecommerce firm can attain consumer confidence, Sridhar Hariharasubramanian, Smarter Commerce Leader, IBM India said, “The consumerisation of technology has created a new class of consumers who are highly empowered with information. Brands not only need to provide a highly personalized and contextual but also need to be consistent in their messaging and service execution across multiple touch points, in order to succeed in this complex operating environment.”


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