Rising Online Retail To Boost India's E-commerce Growth

by CXOtoday News Desk    Jan 02, 2014

ecommerce

The Indian e-commerce market grew at 88% and amounted to $ 16 billion in 2013according to a recent Assocham report.

“The increasing Internet penetration and availability of more payment options boosted the e-commerce industry in 2013. Besides electronics gadgets, apparel and jewellery, home and kitchen appliances, lifestyle accessories like watches, books, beauty products and perfumes, baby products witnessed significant upward movement in last one year,” Assocham Secretary General, D S Rawat told Economic Times.

Assocham estimates that India’s e-commerce market will reach $56 billion by 2023, driven by rising online retail. It stood at $2.5 billion in 2009, amounted to $8.5 billion in 2012 and rose 88% to touch $16 billion in 2013.

The survey was conducted based on the responses of 3,500 retailers in Delhi, Mumbai, Chennai, Bangalore, Ahmedabad and Kolkata. The study revealed that online shopping grew at a rapid pace in 2013 due to attractive online discounts, rising fuel prices and availability of abundant online options. Mumbai topped the list with maximum number of online shoppers, followed by Delhi and Kolkata.

In terms of age, the analysis shows that, 35% of online shoppers are aged between 18 years and 25 years, 55% lie in the bracket of 26 to 35 years, 8% are in the strata of 36-45 years, while merely 2% are in the age group of 45-60 years. In addition to this, 65% of online shoppers are males while 35% are females.

Companies now are increasingly collaborating with daily deals and discount sites to make the best use of increasing online shopping trends, as per the survey. Rawat mentions that close to 10% of Internet penetration in India throws a very big opportunity for online retailers to grow and expand as future of Internet seems very bright,” reports Economic Times.

The products that are sold most include mobile phones, ipads, accessories, MP3 players, digital cameras and jewellery, among others, as the study found.

[Read: Top Trends That Will Drive E-Commerce in 2014]

Those who are reluctant to shop online gave reasons such as preference to research about products and services online (30%), delivery costs being too expensive (20%), uncertain about sharing personal financial information online (25%) and lack of trust on whether products would be delivered in good condition (15%), while 10% do not have a credit or debit card.