India’s e-commerce market was worth about USD 3.8 billion in 2009 and went up to USD 12.6 billion in 2013. It is growing at an estimated 30 per cent CAGR vis-a-vis a global growth rate of 8-10 per cent.
“The biggest challenge in e-commerce sector is to retain key people. Compensation – immediate, short term and long term – are all important but employees in this sector look beyond just money. Unlike other sectors, empowerment, working culture, and focus on innovation are also critical, Nair said.
Due to massive scale up plans, several e-commerce companies are turning to consultants who have expertise in these areas for boosting recruitment, he said.
Nair said retail sector is facing challenges from the fast growing ecommerce players like Amazon and Flipkart. However, retail players can survive, but they require re-strategise their plans and reaching to tier II and tier III cities by adopting new technologies.