India’s e-commerce market is at an early stage but is expected to see a huge growth over the next four to five years. According to a research by Forrester, a research and advisory firm, the e-commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over 57% between 2012-16.
Also, the latest report generated by the industry body ASSOCHAM and research company ComScore, says that the online retail penetration in e-commerce in India has increased to 60%, and has grown to 37.5 million from 26.1 million unique visitors a month, which means an overall growth of 43% annually.
The growth has come across all retail categories and most of them show promising transactions and conversion rates along with a growth in online visitors. The top retail sites in India such as Amazon, Flipkart, Snapdeal have each had a growth of over 100% in the last 12 months. This shows the immense potential that the retail category holds in India. Over the past 12 months, venture capitalists have invested heavily in India’s e-commerce market, new players have emerged, and the e-commerce ecosystem has developed, presenting a huge opportunity for companies willing to work through some of the logistics and payments challenges in India.
The Indian shoppers are increasingly discovering buying items with just a click of the mouse. Online movie ticket booking websites and travel booking websites are very popular among the Indian online customers. The Indian railways ticket website, IRCTC is used by almost one in five of the country's web users, says the research company Comscore. The retail websites are also fast catching up as more people are purchasing apparels, home appliances and electronic items online.
India can expect to witness a major change in its e-commerce market in the next couple of years because there will be an entire generation that has grown up with internet at home and school ready to spend online by 2015 or so. For this generation, internet is the first point of contact and online shopping is a means of convenience. This is in contrast to those who have had to make a transition to working on the internet, having not been exposed to it while growing up.
Currently, India is the third largest internet user country in the world after US and China. As of now, the e-commerce sales value, excluding travel bookings, is less than 1 per cent of the total pie of an estimated $500 billion retail sale in the country. This works out to less than $5 billion. The projection is that e-commerce in India will grow to $15 billion by the year 2015.
Thus to conclude, we can say that the Indian e-commerce industry is going to flourish with the rising demand from consumers and increasing penetration of technology. Models like Cash on Delivery, improved logistics, payment options and service quality will boost the Indian e-commerce market. In the coming years India will be put on the global map as one of the largest e-commerce markets.
By
Shovana Sahu
About Intentree
Intentree provides e-commerce optimization services using measurable & frugal usability, performance, security and functional techniques. To know more visit us @ www.intentree.com or http://www.slideshare.net/intentree/intentree-introduction
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