India E-Commerce Market: Trends and Forecast
E-commerce has sparked a revolution and this thriving business is poised for strong growth in the coming years. With 150 million Internet users, India now has the third largest Internet population in the world, behind only China with 575 million and the US with 275 million. A large portion of this population is logging on to discount fashion brand retailers and specialty online stores to satiate their lifestyle shopping needs. Although the transition from traditional shopping to online shopping took a long time, e-commerce has now become the second largest website category (according to an analysis of 200 domains for Opera Software’s State of the Mobile Web report). 2012). An aggressive marketing campaign by these portals and the ease of online transactions appear to have provided a much-needed boost to these e-commerce businesses. The same revelations report that the top e-commerce sites in India are Quikr, Amazon, Flipkart, Alibaba, and Snapdeal. Multi-product e-commerce portals that offer goods and services in a variety of categories, including books and magazines, computers and peripherals, vehicles, software, consumer electronics, home appliances, jewelry, audio/video, entertainment, goods, merchandise gift are the most popular.
Subways are e-commerce hubs
According to a study of 100,000 transactions on Shopclues.com (another player in the e-commerce segment) during October-November 2012, Delhi-NCR, Bangalore, Chennai, Hyderabad and Mumbai topped the list of top 10 cities for e-commerce in India. . Patiala, Bhatinda, Faizabad and Panipat were ranked in the top 10 emerging cities for e-commerce.
Investors are not wary of investing in e-commerce
According to estimates, investors poured more than $450 million into Indian e-commerce in 2011. Shopclues also estimated that e-commerce will reach $900 million in gross revenue by the end of 2013. With Ambareesh Murty, a former E-bay executive who uses a $5 million seed fund to launch lifestyle product website, Pepperfry.com, Myntra garnering $40 million in investors since 2007, Snapdeal backers put up $52 million, and Amazon debuted in India at through the product comparison site, Junglee.com. E-commerce has really come of age in India.
Future of eCommerce in India
The number of new entrants in the field of e-commerce is increasing and it won’t be long before retailers start to switch to the online medium. A recent pan-Indian report published by Com Score Inc revealed that online shopping in India reached a growth rate of 18 percent in 2011 and is forecasting higher rates in the coming years. Forrester, a leading global research and advisory firm, in its report titled “Asia Pacific Online Retail Forecast, 2011 to 2016”, has stated that the e-commerce market in India will grow fastest within the Asia-Pacific region. Peaceful. With a compound annual growth rate (CAGR) of over 57% between 2012 and 2016, this industry appears to be flourishing thanks to growing disposable income and an internet-savvy population. The future of the e-commerce industry in India is bright, fueled by the growing number of Internet users, especially among the bargain-seeking middle class. It will only witness an upward trajectory and technological advances including 3G and 4G wireless communication will be a catalyst in its growth, leading more and more users to buy products online frequently. It has also been observed that social networks are accelerating the adoption of e-commerce, giving users the opportunity to interact with brands.