The e-commerce industry in the country is likely to be worth $38 billion (roughly Rs. 2,51,720 crores) by 2016, a 67 percent jump over the $23 billion (roughly Rs. 1,52,357 crores) revenues for 2015, as per industry body Assocham.
“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,” Assocham said in a statement.
Increasing internet and mobile penetration, growing acceptability of online payments and favourable demographics has provided the e-commerce sector in India the unique opportunity to companies connect with their customers, it said.
There would be over a five to seven fold increase in revenue generated through e-commerce as compared to last year with all branded apparel, accessories, jewellery, gifts, footwear are available at a cheaper rates and delivered at the doorstep, it added.
It noted that the the buying trends during 2016 will witness a significant upward movement due to aggressive online discounts, rising fuel price and wider and abundant choice will hit the e-commerce industry in 2016.
It observed mobile commerce (m-commerce) is growing rapidly as a stable and secure supplement to the e-commerce industry.
“Shopping online through smart phones is proving to be a game changer, and industry leaders believe that m-commerce could contribute up to 70 percent of their total revenues,” the statement added.
In India roughly 60-65 percent of the total e-commerce sales are being generated by mobile devices and tablets, increased by 50 percent than the last year and also likely to continue upwards, it added.
It noted that the browsing trends, which have broadly shifted from the desktop to mobile devices in India, online shopping is also expected to follow suit, as one out of three customers currently makes transactions through mobiles in tier-1 and tier-2 cities.
In 2015, 78 percent of shopping queries were made through mobile devices, compared to 46 percent in 2013.
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.
It revealed that Mumbai ranks first in online shopping followed by Delhi, Ahmedabad, Bangalore and Kolkata.
On the mode of payment, almost 45 percent of online shoppers reportedly preferred cash on delivery mode of payment over credit cards (16 percent) and debit cards (21 percent).
Only 10 percent opted for Internet banking and a scanty 7 percent preferred cash cards, mobile wallets, and other such modes of payment, it said.
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.
The survey revealed that 38 percent of regular shoppers are in 18-25 age group, 52 percent in 26-35, 8 percent in 36-45 and 2 percent in the age group of 45-60.
Almost 65 percent of online shoppers are male as against 35 percent female.