In a country with a 3.73 trillion-dollar economy and where over 60% of the population owns a mobile phone, the digital landscape presents abundant opportunities. Recent research highlights India as the third-largest online shopping market globally, with 180-190 million shoppers in 2021, underscoring the significance of digital commerce in the nation’s economic fabric.
Mirum India and VML, entities within the WPP Group, have unveiled the ‘India MarTech & CommerceTech Report 2024,’ delving into the nuances of India’s MarTech and CommerceTech domains, exploring current trends and future trajectories.
A notable revelation from this edition is the significant increase in budget allocation towards MarTech, with over 65% of brands now investing more than 16%, compared to a mere 18% in 2023. Moreover, the MarTech landscape is witnessing maturity, evident from the fact that 63% of respondents extensively use MarTech tools, and a staggering 94% anticipate an increase in MarTech spends over the next three years.
“The India MarTech & CommerceTech Report 2024 is a culmination of responses received from over 250 marketing leaders alongside some great quality interviews. This integration with the design theme creates a wonderful sense of how MarTech, CommerceTech, and advertising are evolving together. With every edition of the report, we have seen the MarTech landscape evolve. The 4th edition is even more noteworthy with some surprising insights, industry-wise preferences, role-wise viewpoints, and more – everything packaged in one report!”Mihir Karkare, managing director, Mirum India, said.
Interestingly, while over 50% of brands cite a balanced mix of technology and creativity driving their marketing strategy, there has been a notable uptick (16%) in technology-centric approaches, potentially influenced by emerging technologies such as Gen AI.
Brand loyalty and brand building emerge as top objectives for MarTech utilisation, aligning with marketing leaders’ key performance indicators. Moreover, while uncertainty about ROI was once a primary hurdle, the focus has shifted to the daunting task of selecting the right MarTech tools, reflecting the burgeoning array of options in the market.
Industry-wise, complexities vary, with the FMCG industry finding tool selection less challenging but grappling with uncertainty regarding ROI, possibly attributed to difficulty in obtaining personal identifiable information (PII). Conversely, Healthcare or HealthTech and Retail rank lowest in complexity, indicating a relatively smoother MarTech adoption journey.
CommerceTech emerges as a strategic growth driver, resonating with 95% of respondents, reflecting its broader applicability beyond just the e-commerce sector. Product-driven industries including Food & Beverage or FoodTech exhibit higher alignment with digital commerce, while sectors reliant on in-person experiences such as Education or EdTech and Healthcare or HealthTech prioritise physical channels.
“Today, the act of ‘add to cart’ has transcended mere convenience; it has become the cornerstone of modern commerce. This corroborates with the data revealed in our latest report indicating CommerceTech has evolved beyond its roots in Ecommerce, emerging as a strategic growth driver for businesses across diverse industries. Today, while the landscape has matured, marketers are looking at external partners to support their MarTech and CommerceTech strategies,” Amit Gupta, managing director, VML Commerce, said.
Though organisations perceive themselves as digitally mature, gauging success remains a challenge for nearly 45% of respondents, necessitating expert intervention to navigate complexities and achieve desired outcomes.
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