India’s consumer behaviour has experienced a radical transformation at the most fundamental levels. The rise in smartphone use fuelled by affordable data plans has catalysed an online revolution in the country. The novel coronavirus pandemic has further accelerated the process of digital inclusion, and it is now not only routine to transact online and have food, personal care items or anything else delivered at the one’s doorstep, but it is also common to learn online, have medical consultations online, and even resolve disputes online.
These realisations have given India the opportunity to disrupt the status quo with its innovative abilities. Systems such as the Unique Identification Authority of India (UIDAI) and Aadhaar, the Unified Payments Interface (UPI) and the Ayushman Bharat Digital Mission have reengineered markets.
Despite the rapid advancement of digital platforms on the one hand and the pervasiveness of the Internet-enabled phone on the other, small enterprises such as local kirana stores have not gained from this. Online purchases from “near and now” inventory from the local store remain in a digital vacuum. This is because, to sell on numerous platforms, sellers must maintain a separate infrastructure, which only adds costs and limits participation. The distinct terms and conditions of each platform further limit the sellers’ flexibility. Consequently, small and medium-sized businesses have lost their freedom to choose and participate in the country’s e-commerce system at their will and on their terms. Alarmingly, centralising digital commerce transactions on a single platform creates a single point of failure.
