E-commerce in India will hit $38 bn in 2016 says Assocham
Birth of internet and the rapid increase in its use is changing everything for India. Because of mobile penetration and growing acceptability of online payments, the e-commerce industry in the country is likely to be worth $38 billion (roughly Rs. 2, 51,720 crores) by 2016, a study revealed by the industry body Associated Chambers of Commerce (ASSOCHAM) on Friday. Report suggests that’s a 67 percent jump over the $23 billion (roughly Rs. 1, 52,357 crores) revenues for 2015.
“India’s e-commerce market was worth about $3.8 billion (roughly Rs. 25,172 crores) in 2009, it went up to $17 billion (roughly Rs. 1,126,11 crores) in 2014 and to $23 billion (roughly Rs. 1,52,357 crores) in 2015 and is expected to touch whopping $38 billion mark by 2016,” said D S Rawat, Secretary General ASSOCHAM.
As predicted by Assocham, the ecommerce is being called one of the fastest growing sectors. In the coming year, the industry will witnessed a significant upward movement due to aggressive online discounts, rising fuel price and wider and abundant choice.
“Increasing internet and mobile penetration, growing acceptability of online payments and favorable demographics has provided the e-commerce sector in India the unique opportunity to companies connect with their customers”, adds the ASSOCHAM paper.
On the other note, mobile commerce (m- commerce) through smart phones and online shopping apps is growing rapidly as a stable and secure supplement to the e-commerce industry. Industry leaders believe that m-commerce could contribute up to 70% of their total revenues.
The survey reveals that Mumbaikars raked one in India shopping online in 2015. Respectively, ranks holders are Delhiiets, Ahemdabad, Bangalore and Kolkata.
Rawat added, “The customer is connected 24×7 through their smart phones, tablets and other mobile devices which is leading to a gradual evolution of e-commerce into mobile commerce and there is an issue of convenience which also leads to impulsive buying”.
Reports say that the browsing trends have widely shifted from desktops to mobiles in India, as one out of three customers currently makes transactions through mobiles in Tier-1 and Tier-2 cities. “In 2015, 78 per cent of shopping queries were made through mobile devices, compared to 46 per cent in 2013,” said Mr. Rawat.
As per the paper, in 2015, the highest growth rate was seen in the apparel segment almost 69.5 percent over last year, followed by electronic items by 62 percent, baby care products at 53 percent, beauty and personal care products at 52 percent and home furnishings at 49 percent.
As estimated, almost 45% of online shoppers reportedly preferred cash on delivery mode of payment over credit cards (16%) and Debit Cards (21%). Only 10% opted for Internet Banking and a scanty 7% preferred cash cards, mobile wallets, and other such modes of payment.
Among the above age segments, 18-25 years of age group has been the fastest growing age segment online with user growth being contributed by both male and female segments, adds the ASSOCHAM paper.
The survey highlights that 38% of regular shoppers are in 18-25 age group, 52% in 26-35, 8% in 36-45 and 2% in the age group of 45-60.
Fairly, 65% of Online Shoppers are male as against 35% female.