Quantified Commerce’s Ryan Andreas on e-commerce in India

E-commerce is growing by 30% every year, most notably in one of the world’s largest emerging markets—India. The cities of Bengaluru, Mumbai, and Delhi are responsible for 40% of all E-commerce orders. Still, E-commerce offers many challenges, and it’s extremely difficult to find creative solutions to the traditional challenges facing E-commerce companies. In the context of Indian businesses finding practical and creative solutions to those challenges, it becomes even harder, but some companies are surging ahead of the competition in a race that could be worth hundreds of billions of dollars in the near future. We asked Ryan Andreas, co-founder of Quantified Commerce about the biggest challenges for e-commerce in India, “e-commerce is facing a crucial moment as companies expand globally…” said Andreas, “not only are we going to have to overcome traditional problems like consumer loyalty and brand identification, but as we move into other parts of the globe there are issues that are relevant to the specific countries we’re expanding into.”

One of the issues unique facing E-commerce companies in India is infrastructure. India has the largest network of roads in the world, but only 2% of them are national highways. Combine this with lax government regulations regarding licensing drivers and any E-commerce company that attempts deliveries in India will face problems with traditional forms of delivery. This difficulty in delivery leads to fewer deliveries made on time, or at all, which leads to less satisfied customers, which leads to less customer loyalty, which is the death spiral for any E-commerce company. In order to get around these problems, Quantified Commerce is making inroads in India’s last mile and logistics infrastructure, and researching drone delivery, which was recently recognized by the Indian government as a serious alternative to traditional means of delivery.

The infrastructure of the country you’re delivering in isn’t the only infrastructure E-commerce companies need to be concerned about. The infrastructure of a company is just as important. Vertically-integrated brands, such as the ones built by Quantified Commerce, are becoming more and more mainstream. The benefits of vertical integration allow companies to cut down on costs, improve supply chain coordination, and increase the entry barriers of potential competitors. Because Quantified Commerce is a vertically-integrated company, it owns all of the manufacturing and warehouses. Because it sells directly to its consumers, it has been able to cut down on costs in a big way, while simultaneously building a dominant presence in one of the world’s biggest emerging markets.

However, having the infrastructure in place to deliver products to your customers means nothing if you don’t have customers in the first place. A challenge that E-commerce companies face is finding and targeting not just customers, but the right customers and E-commerce companies in India are no different. As India’s middle class grows they want to spend money, but they need to know where and what they can spend it on. By taking advantage of new advertising mediums like Facebook and Youtube, Quantified Commerce is able to target and advertise directly to consumers. This type of targeted advertising is recognized as an extremely effective way of generating clicks and converting customers.

Not only is Quantified Commerce leveraging new, effective advertising mediums like Facebook and Youtube, it’s also taking advantage of new, exciting, methods of advertising. By partnering with social media influencers Quantified Commerce is able to build and earn trust with potential customers, and take advantage of the concept of social-proofing in order to attract, and ultimately convert customers. This a method of earned advertising, which Nielsen reported 92% of users trust more than traditional forms of advertising.

With offices located in Times Square, New York, Quantified Commerce has access to the best talent in the world. While bringing new talent on board, Quantified Commerce also grows talent within. They have an emphasis on leadership and education in order to eliminate power distance. By focusing on education and leadership initiatives Quantified Commerce is allowing the smartest and most forward-thinking members of Indian society to have a fair say in business practices. I don’t have to hyperlink anything here to tell you that better ideas mean better business.

As India develops both economically and socially it is important to be on the lookout for companies that understand both the social and economic infrastructure of the country. Companies like Quantified Commerce not only have an understanding of India but a mastery of digital advertising, which in the wild west that is the Indian E-commerce market, is a winning combination. We will be tracking their progress over the coming years along with the rest of the e-commerce space.
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