E-Commerce Industry in India To Cross 1 Lakh Crore In 2015
With the rapid growth in smartphones, E-commerce has uplifted India’s place among top 20 developing countries over the global forum (as stated in Global retail development Index, 2014).
Consumer behavior has changed swiftly, with the shifting trends projected towards buying online from offline shopping.
The report highlighted that Travel industry encompassed almost 61% of the total E-Commerce market. Likewise, E-tailing grew by 1.4 times since 2013 covering almost 29% of the E-Commerce market share in India.
The significant contributing factor towards the swift growth of Indian digital commerce is the increased smartphone usage. Mobiles and its accessories have conquered the maximum share of the Indian digital commerce market. E-Tailing sector has 41% stake of the total revenue, along with Apparels, Footwear and personal items having 20% share overall.
Consumer durable items along with kitchen appliances have acquired the turnover of around INR 3,404 crores (US$5.6 million), and the remaining 25% has been conquered by Laptops/Tablets/Netbooks (INR 2,780 crores or US$4.6 million), Home Furnishing (INR 1,059 crores or US$1.7 million) and Books (INR 648 crores or US$0.1 million).
Plastic money usage for online shopping is the trend. However, 45% of online shoppers apparently prefer payment mode to be, cash-on-delivery over credit cards (16%) and Debit Cards (21%). Only 10% prefer Internet Banking and few other 8% favor cash cards, mobile wallets, and another payment modes.
Classifieds and Online Service Market gaining momentum
Classifieds market has also astonishingly gone up acquiring a turnover of INR 896 crores (US$1.4 million) by December 2014. Being competitive with the major digital commerce players, online service market has grown with CAGR of 73% since 2010. It has touched INR 2,025 crores (US$3.3 million) in 2014.
The food retail sector boomed up by 40% in 2014.
The evolving Indian E-commerce market
The fast growth of Indian digital commerce space is followed by a major shift to internet, via Smartphones, Tablets, and Laptops. As per the report generated by Mobile Internet in 2014, India would soon touch the 213 million mark of mobile internet users by June 2015. The consumer outlook of Indian customers is changing rapidly, leading to the industry growth.
Investments in e-commerce companies from 2014-2015
The figures from Ministry of Statistics have indicated that India is likely to lead in terms of the fastest growing economy, thrashing China next year. The economic status of the country is budding, contributing to the growth of an E-commerce industry.
Another fast growing trend likely to dominate the E-Commerce industry is social shopping, which means the shoppers’ friends can cosset within the shopping experience.
In 2013, Gartner Inc. had estimated the worth of $6 billion in 2015, projecting to 70% growth from the revenue of $3.5 billion E-commerce.
However, as per to the forecast by IAMAI and IMRB International, the Indian E-Commerce industry is likely to expand at a rate of 33% and go across INR one lakh crore (US$16.3 billion) by the end of 2015.
The rapid penetration of Internet and people’s dependence on smartphones is leading towards E-commerce to become the future of India.