target audience: TECH SUPPLIER  Publication date: Jul 2023 - Document type: Market Note - Doc  Document number: # US51005723

ONDC Is Reshaping Indian Kirana, Tapping into $810 Billion eCommerce Opportunity

By:  Heather Hershey Loading


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This IDC Market Note offers insights on Open Network for Digital Commerce (ONDC), which is reshaping kirana in India to tap into the $810 billion ecommerce opportunity. The Open Network for Digital Commerce represents a transformative attempt by the Government of India to democratize the nation's digital commerce sector. By disrupting existing monopolies, promoting decentralization, and lowering entry barriers, ONDC aims to foster an inclusive digital economy that connects small merchants and rural retailers to the wider ecommerce sector. However, its effectiveness hinges on overcoming multiple challenges, including widespread adoption, regulatory hurdles, sustainable funding, and clarification of its legal relationship with the government.

The entry of ecommerce giants such as Amazon into the ONDC ecosystem not only poses an intriguing paradox, as their involvement could enhance interoperability and enrich customer experiences but also seems to counteract ONDC's mission to counterbalance large ecommerce firms' dominance. Despite the uncertainty and challenges, the ONDC initiative, if successfully implemented, holds the potential to significantly transform India's digital commerce landscape.


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