Assessment of the Impact of Digital Marketing on Retail in India and China in the Future
Introduction
Digital marketing has undeniably become a significant component of the retail sector. Every company requires an internet marketing strategy since more and more people are making purchases online in order to reach their target market and attract new clients (Rao, Vihari, & Jabeen, 2021). To expand their enterprises and take advantage of the chances the internet world provides to obtain more clients, earn more money, and convert more people, everyone—from large corporations to small businesses and eateries—is transferring their activities online. The fact that digitalization is becoming more and more accepted in daily life is fantastic news for digital marketing in China and India, two of the world’s two most populous nations. In nations like India and China where there are many people crammed into a tiny space, digital marketing is expanding quite rapidly. Additionally, millions of individuals in these nations utilize social media and use mobile phones (Tabeck, 2020). Anyone who wants to expand their company and provide their goods and services to more people must engage in digital marketing on the internet. Wewege, Lee, and Thomsett (2020) offers that this is the case because there are no geographic restrictions on digital marketing on the internet. Both in China and India, the future of digital marketing seems to be promising and bright. Digital marketing offers a number of significant benefits over conventional marketing that make it an efficient and affordable method of company promotion. The aim of this article is to assess the impact of digital marketing on retail in India and China in the future. Digital marketing has influenced the transformation of the retail sector in India and China with immediate impacts including meeting of consumer demands with an increased pace, new and innovative business opportunities and solutions, and enabling efficient operations through technological advancements.
Digital Marketing and the Transformation of the Retail Sector
The daily lives of billions of people across the globe now include use of the Internet, social media, mobile applications, and other forms of digital communication technology. More over 4 billion people, or 60 percent of the world’s population, actively use the internet, according to Memon et al. (2021). Social media use has mostly become a part of people’s daily life in every country in the globe. Around the globe, more than 2 billion people were actively using social media as of 2019 (Paul & Rosenbaum, 2020). By 2024, this number is projected to increase to almost 3.5 billion (Paul & Rosenbaum, 2020). Businesses may accomplish their marketing goals for very minimal money by using digital and social media marketing. 86 percent of companies utilize social media platforms like Instagram, Twitter, and TikTok for marketing, and more than 60 million enterprises have a Facebook page (Sheth, 2021). The promotion of public services and political propaganda has also made considerable use of digital and social media-based technologies and apps (Karine, 2021). More time is being spent online by consumers searching for information, conversing about their shopping experiences with others, and communicating with businesses. This includes researching goods and services, asking other customers about their experiences, and connecting with companies. Because of this shift in customer behavior, retail companies are now using digital and social media as a crucial component of their overall corporate marketing strategy (Sheth, 2021). Both in China and India, this move in the retail industry is uniquely positioned to expand in the next few years, making digital marketing and the retail sector intertwined for all major industries.
A retail business may benefit significantly if social media platform marketing is integrated into the entire business plan. Businesses may interact with their consumers on social media to increase brand recognition, shift consumer perceptions, solicit feedback, create new goods and services, and increase market share (Kshetri, 2018). In order to maintain and grow their market share, businesses must look for best practices in digital and social media marketing strategies given the demise of traditional communication channels and society’s reliance on brick-and-mortar stores. This is because companies must compete with other companies that use comparable strategies (Li, Frederick, & Gereffi, 2019). The new reality of growing consumer power and a better understanding of cultural and societal norms presents significant obstacles for businesses as they establish their social media strategy and goals (Wewege, Lee, & Thomsett, 2020). Negative electronic word-of-mouth may now immediately spread customer complaints to millions of individuals, which can be terrible for the firm in question.
Consumer behavior has been significantly impacted by the introduction of new technologies and the widespread use of portable electronic devices. This, according to Tabeck (2020) has had a direct impact on how individuals communicate with one another, utilize social commerce to make choices, and make online purchases. As a result of greater usage of digital marketing and social media, consumer opinions of online shopping have changed favorably, increasing market share for businesses entirely dedicated to eCommerce (Paul & Rosenbaum, 2020). Consumers now have a more dispersed purchasing experience as a consequence of the expansion of shopping channels, which has also had an effect on consumer behavior. Mobile channels have become commonplace as a result of mobile tools, shopping applications, location-based services, and mobile wallets, all of which have an influence on the user experience. They are now firmly ingrained in consumers’ everyday lives.
Impact of Digital Marketing on Retail in India
In the last 2 years, there has been a significant expansion in the range of activities that fall under the umbrella of digital marketing. The digital industry has expanded significantly in spite of a widespread pandemic that has crippled offline businesses since March 2020 in India (Kumar, Barik, & Patra, 2018). The COVID-19 pandemic has had an impact on every facet of human life. Even with the said business losses, key lessons in India have been an increased number of people using online platforms to conduct business, both for retailers and consumers. There are more people using the internet in India than in any other country in the globe. According to estimates by Dubey and Shukla (2021), by the year 2025, more than 5 billion individuals in the world would have access to the internet. This shows that a greater number of people are going online, which makes it rational and beneficial for retail businesses to join the digital marketing area. As a result, the retail industry as a whole will benefit from retail firms entering the digital marketing sector. The amount of data that is used and consumed is growing ( ). The number of people who subscribe to various video platforms and other internet-related services, such as online shopping, has recently seen a significant uptick. For the Indian retail sector, it is projected that this will expand much more as a result of the digital revolution.
As a direct consequence of digital marketing, the perspectives of modern consumers have evolved. Without a well-crafted digital marketing strategy, the vast majority of companies just can’t keep up with the competition in today’s market (Dubey and Shukla, 2021). There are many different ways in which retail companies may profit from a well-managed digital marketing strategy. There are a number of factors that are driving a rapid transformation in the retail industry in India. Some of these factors include rising household incomes, rising consumption, the rise of e-commerce, favorable demographics, and easy access to credit. At the present time, the retail industry in India is responsible for more than 12 percent of the GDP of the nation as well as 10 percent of the jobs in the country (Mahipal & Shankaraiah, 2018). The retail sector in India is now increasing at a pace that has never been seen before, and according to predictions provided by industry analysts, it is projected to reach $1.8 trillion in the year 2023 (Dubey and Shukla, 2021). It is anticipated that the market for business-to-business (B2B) e-commerce will grow to $900 billion by the year 2023 (Mohan & Ali, 2019), while the market for business-to-consumer (B2C) e-commerce would grow to $110 billion by the same year (Deepthi & Purna, 2021). Both of these growth projections reflect a rapid pace of expansion. In order to satisfy the requirements of their clientele and to make the shopping experience more enjoyable for everyone, retailers need to modify their business models so that they are more responsive to the constantly changing external environment. It is anticipated that digital technology will have a substantial impact on merchants as well as customers, making it a candidate for the category of disruptors (Mohan & Ali, 2019). Connecting to the internet will be India’s most important challenge and opportunity due to the high correlation that exists between having access to the internet and having economic success. People are now able to connect to the internet wirelessly owing to technologies such as public Wi-Fi, 3G, and 4G networks, which are at the center of the subsequent significant shift that will take place.
Impact of Digital Marketing on Retail in China
According to Liu, Perry, and Gadzinski (2019) on the worldwide penetration and reach of the Internet, there would be more than one billion Chinese people using the internet by the end of the year 2022. This is a rise when compared to the numbers from the prior years. The percentage of Chinese inhabitants who have access to the internet is expected to reach 75% by the end of the year 2023 (Choo & Tham, 2021). Since 2013, Zhu and Gao (2019) note that China has also maintained its position as the country with the most people who purchase online. The income generated by online retail sales is expected to exceed $1.9 trillion in 2021, representing an increase of 11 percent compared to the previous year (Siraj et al., 2020). China is expected to have 1 billion internet users by the year 2023. Many Chinese companies are now putting a greater focus on their digital marketing operations in order to take advantage of China’s rapidly expanding online market and the country’s high rate of internet access. When developing a digital strategy for a firm, it is impossible to avoid mentioning the dominance that Tencent, Baidu, and Alibaba have over the Chinese market (Butt et al., 2021). Because Chinese consumers are so used to utilizing Alibaba and Tencent’s respective online electronic payment systems (Zhu and Gao, 2019), businesses are compelled to employ the ecosystems that are supplied by both of these companies.
For the vast majority of western businesses, selling in China was regarded an unattainable goal. A change in the market has made China a whole new territory of possibility for businesses based outside of the country. You will have everything you need to compete with local companies in China on equal terms once you arrive there thanks to a sound internationalization strategy that includes a Chinese-language digital marketing strategy. This will allow you to compete on a level playing field with the local businesses. Retailers have reason to be optimistic about the market potential in China because of the country’s enormous and growing urban and rural populations. The growth in retail sales of consumer products was 7 percent higher as compared to the previous year (Choo & Tham, 2021). This pattern of behavior is consistent with the increase in transaction volume that was seen in 2018, as well as in 2019, respectively. Figure 1 displays the percentage year-over-year increase in China’s overall retail sales volume.
Figure 1: Adapted from Choo & Tham (2021)
Chinese customers’ reliance on social networking sites throughout the purchasing process is primarily to blame for the rapid rise in influencer popularity in that nation. There shouldn’t be any modifications or adaptations made to western campaigns for the Chinese market for content marketing (Siraj et al., 2020). For anything to have a possibility of becoming viral, it must have both entertaining and narrative elements. Retailers will have access to a wide range of possibilities if they can effectively implement effective digital marketing tactics. However, businesses must think about using the digital marketing tools and communications strategies at their disposal if they want to survive and thrive in a cutthroat retail market. Retail business may be able to benefit from digital marketing’s paybacks if they stay current on the latest strategies for increasing sales.
Future of Retail in China and India
Due to the fact that technology enables businesses to provide better customer service, the retail sector in China and India is heading toward a digital future. People who utilize digital technology for social reasons are becoming more interconnected, which affects online purchasing (Liu, Perry, & Gadzinski, 2019). Therefore, businesses without an adequate internet presence run the danger of losing clients. Installing the most up-to-date technology is essential for survival in today’s competitive market since it will boost your company’s productivity and promote online ordering inside retail operations. This is due to the fact that adopting the latest technology can help your business thrive. The success of the digital retail revolution is contingent upon industry and retail analytics. The internet market for this business is routinely listed among the most competitive in the world because to the frequent changes in fashion and the extreme degree of competition. In the vast number of online discussion forums and blogs, consumers debate issues ranging from brand-new products to suggested customer service standards. As the frequency of online interactions between consumers and organizations grows, there is an opportunity for firms to collect and analyze a large amount of data. Understanding the data may help businesses enhance their customer service, increase the efficiency of their operations, and increase their income. To ensure that consumers have a great experience, businesses may utilize analytical tools to assist them attract and retain customers, create strong connections, and provide loyalty programs to customers with a high lifetime value. This may be done to ensure that clients have an enjoyable experience. If retailers in India and China personalize their customers’ experiences to their individual wants and tastes, they will be able to keep them coming back for more of what is offered.
References
Butt, A., Ahmad, H., Muzaffar, A., Ali, F., & Shafique, N. (2021). WOW, the make-up AR app is impressive: a comparative study between China and South Korea. Journal of Services Marketing, 36(1), 73-88.
Choo, E. Y., & Tham, S. P. (2021). A Critical Analysis of Marketing and Strategic Plan Venture into China Market: Case Study of Padini. International Journal of Social Sciences: Current and Future Research Trends, 10(01), 49-63.
Deepthi, P. M., & Purna, G. V. (2021). Evolution of E-commerce in indian retail market and its future trends. Dynamic Business Trends and Innovations in Contemporary Times. Para-manount Publishing, 162-168.
Dubey, M. N., & Shukla, D. B. (2021). Impact Of Digital Marketing on Youth with Reference to Gorakhpur City. Iconic Research And Engineering Journals, 5(1), 1-5.
Karine, H. A. J. I. (2021). E-commerce development in rural and remote areas of BRICS countries. Journal of Integrative Agriculture, 20(4), 979-997.
Kshetri, N. (2018). Rural e-commerce in developing countries. It Professional, 20(2), 91-95.
Kumar, S., Barik, B., & Patra, R. (2018). Proliferation of Digitalization in Retail Sector: A Review in Indian Context. Review of Business and Technology Research, 15(1), 40-45.
Li, F., Frederick, S., & Gereffi, G. (2019). E-commerce and industrial upgrading in the Chinese apparel value chain. Journal of Contemporary Asia, 49(1), 24-53.
Lingyu, M., Lauren, C., & Zhijie, D. (2019, May). Strategic development of fresh e-commerce with respect to new retail. In 2019 IEEE 16th International Conference on Networking, Sensing and Control (ICNSC) (pp. 373-378). IEEE.
Liu, S., Perry, P., & Gadzinski, G. (2019). The implications of digital marketing on WeChat for luxury fashion brands in China. Journal of Brand Management, 26(4), 395-409.
Mahipal, D., & Shankaraiah, K. (2018). E-commerce growth in India: a study of segments contribution. Academy of Marketing Studies Journal, 22(2), 1-10.
Memon, S. U. R., Pawase, V. R., Pavase, T. R., & Soomro, M. A. (2021). Investigation of COVID-19 impact on the food and beverages industry: China and India perspective. Foods, 10(5), 1069.
Mohan, V., & Ali, S. (2019). Challenges faced by Indian MSMES in adoption of internet marketing and e-commerce. Academy of Marketing Studies Journal, 23(1), 1-9.
Paul, J., & Rosenbaum, M. (2020). Retailing and consumer services at a tipping point: New conceptual frameworks and theoretical models. Journal of Retailing and Consumer Services, 54, 101977.
Rao, P. H. N., Vihari, N. S., & Jabeen, S. S. (2021). Reimagining the fashion retail industry through the implications of COVID-19 in the Gulf Cooperation Council (GCC) countries. FIIB Business Review, 10(4), 327-338.
Sheth, J. (2021). New areas of research in marketing strategy, consumer behavior, and marketing analytics: the future is bright. Journal of Marketing Theory and Practice, 29(1), 3-12.
Siraj, A., Guo, J., Kamran, M. W., Li, Q., & Zhu, Y. (2020). Characteristics for E-satisfaction in E-retailing-evidence from Chinese E-commerce. International Journal of Innovation, Creativity and Change, 12(5), 370-393.
Tabeck, P. S. (2020). Role of technology in retail business. J. Xi’an Univ. Technol, 12(10).
Wewege, L., Lee, J., & Thomsett, M. C. (2020). Disruptions and digital banking trends. Journal of Applied Finance and Banking, 10(6), 15-56.
Zhu, G., & Gao, X. (2019). Precision retail marketing strategy based on digital marketing model. Science Journal of Business and Management, 7(1), 33-37.
