India’s e-commerce market is likely to touch $38 billion mark in 2016, a massive jump over the $23 billion revenues clocked by the industry in 2015, according to an Assocham study.
“Increasing internet and mobile penetration, growing acceptability of online payments and favorable demographics have provided…the unique opportunity to companies to connect with their customers,” said the study.
While the buying trends during 2015 witnessed a significant upward movement due to aggressive online discounts, rising fuel prices and wider and abundant choice will hit the e-commerce industry in 2016, it pointed out.
On the other hand, mobile commerce (m-commerce) is growing rapidly as a stable and secure supplement to the e-commerce industry.
Shopping online through smartphones is proving to be a game changer, and industry leaders believe that m-commerce could contribute up to 70% of their total revenues.
The paper reveals that Mumbai ranks first in online shopping followed by Delhi, Ahmedabad, Bengaluru and Kolkata.
The study also noted that one out of three customers currently makes transactions through mobiles in Tier-1 and Tier-2 cities.
“In 2015, 78% of shopping queries were made through mobile devices, compared to 46% in 2013,” Assocham secretary general D S Rawat said.
In 2015, the highest growth rate was seen in the apparel segment, almost 69.5% over last year, followed by electronic items, up 62%, baby care products, up 53%, beauty and personal care products at 52% and home furnishings at 49%.
Rapid growth of digital commerce in India is mainly due to increased use of smartphones. Mobiles and mobile accessories have taken up the maximum share of the digital commerce market in India, noted the study.
Moreover, almost 45% online shoppers reportedly preferred cash on delivery 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.
The 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 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. Nearly 65% online shoppers are male and 35% female.
The products that were sold most in 2015 include mobile phones, iPad and accessories, MP3 players, digital cameras and jewellery, among others.
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From ITvoir News Desk