Rising online retail trends, defying slower economic growth and spiraling inflation have given a boost to the Indian e-commerce market, as per a latest survey form ASSOCHAM. The industry body revealed that India’s e-commerce market grew at a whopping 88 percent in 2013 to $16 billion from $8.5 billion in 2012. It must be noted that the same market was only $2.5 billion in 2009.
ASSOCHAM Secretary General D S Rawat said, “The increasing Internet penetration and availability of more payment options boosted the e-commerce industry in 2013. Besides electronics gadgets, apparel and jewellery, home and kitchen appliances, lifestyle accessories like watches, books, beauty products and perfumes, baby products witnessed significant upward movement in last one year”.
The survey was done with 3,500 traders and organised retailers in Delhi, Mumbai, Chennai, Bangalore, Ahmedabad and Kolkata. It touted that online shopping grew at a rapid pace in 2013 due to aggressive online discounts, rising fuel prices and availability of abundant online options. Mumbai topped the list of online shoppers among the other cities followed by Delhi and Kolkata, said the survey.
Giving the age-wise insights, the survey revealed that 35 percent of online shoppers are aged between 18 years and 25 years, 55 percent between 26 years and 35 years, 8 percent in the age group of 36-45 years, while only 2 percent are in the age group of 45-60 years. Surprisingly, 65 percent of online shoppers are male while 35 per cent are female.
The ASSOCHAM survey said that many companies are collaborating with daily deal and discount sites to get more traffic. The products that are sold most are in the tech and fashion category, including mobile phones, ipads, accessories, MP3 players, digital cameras and jewellery.
Those who are reluctant to shop online cited reasons like preference to research products and services online (30 percent), finding delivery costs too high (20 percent), fear of sharing personal financial information online (25 per cent) and lack of trust on whether products would be delivered in good condition (15 per cent), while 10 per cent do not have a credit or debit card.
ASSOCHAM further estimates the country’s e-commerce market to reach $56 billion by 2023, driven by rising online retail.