Consumertech – Opportunities after the Corona-Crisis
Consumertech is an important part of the startup environment in India. According to Bain, it had a 35% share of the total investment in startups in 2019. Within consumer tech, e-commerce companies continued to be the largest sub-segment, but in addition, there were increased investments in healthtech, food tech and edtech as well. Both SaaS and fintech attracted significant investor interest and activity through 2019, with many early-stage startups and also a number of late-stage deals.
Much of today’s growth in consumer tech comes indirectly from the booming financial technology (fintech) market which is related to a driven strategy from the government. We have in other articles mentioned the changes related to Digital India and the access to financing, bank accounts, simplification of the bureaucracy, the inclusion of Aadhaar, and the implementation of blockchain.
We expect the growth to stay at a high level going forward, but a lot will also change for the consumer-tech-sector in the aftermath of the corona-virus. Already we are seeing changes in the customer’s preferences which will be a key factor in the future:
- Consumers are searching for sustainable value and more environmentally conscious goods
- The level of emphasis on the mental and physical health — of individuals, their families, and friends, animals, etc. is increasing.
- The current crisis is driving consumers to explore the full range of consumption options— with lasting impact. It is accelerating the transition to eCommerce, and people do change their pattern of shopping in a way that is not expected to back.
- Companies are starting to eliminate the boundaries between home and workplace. As an example, the Norwegian company Telenor is now introducing a choice of a home office for all their 20 000 employees, forever.
- The crisis is creating the need for rapid global coordination mechanisms across the industry and beyond.
As a consumer-tech startup focusing on India, you have to do considerations of these changes and how you can adapt to it. This will open new doors for consumer tech essentials because the consumption of technology is rapidly growing.Traditional forms of marketing will keep decreasing, and the logistics sector will be challenged the most.
If you are considering India as the next marked for your product, Nordic Hub India will help you find the best way in the post-corona marked.