The proposed Open Network for Digital Commerce (ONDC) looks for to manage digital monopolies and create more inclusiveness within the digital commerce environment. As a platform meant to promote open networks developed on open-source method, ONDC will also enable lots of small, medium and micro business to get on to the digital bandwagon.The effort of the Department for Promotion of Industry and Internal Trade aims to bring buyers and sellers on a platform. “The real distinction will come when we see little merchants from numerous cities being able to make their items equally noticeable without being a part of a big established platform,” said Koshy T, CEO, ONDC, while speaking at the recently concluded Indian Venture and Alternate Capital Association (IVCA) Conclave 2022. And I think the 4th phase that will truly take commerce from the presently 150 million users to 500 million will extremely likely be the new generation of front-end players who take advantage of all this back-end facilities,” he added.Delving more on how ONDC would help in creating a level playing field, industry professionals said this platform could show to be extremely disruptive. There are digital deals that take place where they may feel disadvantaged as there is no digital sourcing channel or they are not able to catch the consumers online.
The proposed Open Network for Digital Commerce (ONDC) seeks to manage digital monopolies and produce more inclusiveness within the digital commerce ecosystem. As a platform planned to promote open networks developed on open-source methodology, ONDC will also enable many little, medium and micro enterprises to get on to the digital bandwagon.The initiative of the Department for Promotion of Industry and Internal Trade aims to bring purchasers and sellers on a platform. It would break the hold that Amazon and Flipkart have on e-commerce. “The real difference will come when we see little merchants from numerous cities having the ability to make their products equally visible without belonging of a large recognized platform,” stated Koshy T, CEO, ONDC, while speaking at the just recently concluded Indian Venture and Alternate Capital Association (IVCA) Conclave 2022. “Lets say a really specialised handloom saree originating from Kanchipuram is able to get a specified way of making such an item noticeable. When a few of these things happen, it is going to actually release the power of the medium and little enterprises.” ONDC is working closely with several entities that can assist such enterprises to come online. “We are aiming to do two things. First, educating them and providing solutions. And, 2nd, ensuring that logistics remain in place. We have started lining up with different states and entities consisting of SIDBI and NABARD,” Koshy added.The e-commerce market in India is expected to touch $5.5 billion in market size by 2025, up from $700 million now, according to a current report by management consulting firm RedSeer. The ONDC initiative intends to drive more innovation by consisting of a wide variety of gamers within its ambit.Rajan Anandan, Managing Director, Surge & & Sequoia Capital India LLP, stated ONDC was expected to end up being the UPI moment of e-commerce in India. “The intent here is to democratise commerce, from the customer user interface perspective as well as for the countless merchants in India.” Foreseeing how the characteristics might play out for e-commerce firms, Anandan highlighted that a brand-new generation of customer front-end commerce companies might turn up as the network broadens. “In India, the first phase of e-commerce was the present huge horizontal players like Flipkart and Amazon. One might argue the second was the vertical gamers like Nykaa and Lenskart. The 3rd phase was social commerce with companies like DealShare. And I think the 4th phase that will truly take commerce from the currently 150 million users to 500 million will highly likely be the new generation of front-end players who leverage all this back-end infrastructure,” he added.Delving more on how ONDC would assist in producing an equal opportunity, industry professionals said this platform might show to be incredibly disruptive. “What the majority of the first-generation e-commerce players took 8 or 9 years to achieve, this sort of architecture would be able to turn up in perhaps half the time since lots of things have actually fallen in location,” said Sushma Kaushik, Partner, Aavishkaar Capital. “It is not like the regional kirana merchant is not digitally conscious. There are digital transactions that take location where they may feel disadvantaged as there is no digital sourcing channel or they are unable to capture the clients online. ONDC will be efficient in resolving that part of the problem.” Elaborating further, Kaushik said while such merchants were very knowledgeable about the digital ecosystem, discovering the right set of purchasers and sellers, satisfaction representatives and the other players was a perennial concern for them. “So, we have about 12 million kirana stores, of which I think just really couple of are really buying and offering online. That number will actually take off in a big method when something like this is implemented. Whichs where we will see the Aha minute,” she added.Adding a word of caution, professionals mentioned that while the democratisation of technology was a strong story, embracing a principled technique would be incredibly vital. Amar Shankar Partner-Consulting, EY, mentioned that the function of the government and community was extremely important while carrying out such a system. “It must be guaranteed that data personal privacy is ensured with the correct amount of anonymisation security protocols and the network grows appropriately. We have got a lot more examples on the health side, digital ID, Aadhaar platforms. and so on. I believe there is a lot of opportunity that exists. We just require to be a little cautious from an implementation viewpoint,” he added.FacebookTwitterLinkedin
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