India e-commerce Market to See Huge Boom by 2015
There is going to be a huge revolution as far as e-commerce business in India is concerned in 2015. It is expected that the e-commerce business will touch a figure of $20 million by next year, which is a growth of about 37% in a year. The current e-commerce in India is a $11 billion market and the growth that it would experience in 2015 is sure to attract more and more companies into online retail business. The main reason behind this is the offers that e-commerce retailers and big online players are offering the internet users. Also, India is adopting the online shopping, culture like in the West and the offers are also quite tempting for the average Indian consumer.
Motilal Oswal Securities in its report on e-commerce has said that “E-commerce in India is a $11 billion market, and is estimated to reach $20 billion by 2015, growing at a CAGR of 37% over 2013-15.” This popular research firm has said that they have come to this conclusion based on their research proved that there is an increased number of internet users in India who are now looking at online shopping as their favorite shopping option. The main reason behind this is because of the convenience of shopping and the fact that they can buy their favorite products at cheaper rates online. The best part is that there has been a rise in the number of internet users in India and most of them have taken a liking to e-commerce shopping.
The research firm has found out that online travel is dominating the e-commerce scenario in India at the moment. But, they strongly believe that e-tailing will be the most important factor that will be driving the e-commerce growth in the country in the near future.
At present, the online travel constitutes to 71% of the ecommerce business in India and e-tailing is just at 16%. But, travel has just grown at a CGAR of 32% from 2009 to 2013. But, e-tailing will be the major driving force in the e-commerce business in the country when looking forward and it is expected to attain a growth of 60% at $7 million in 2016 from $1.7 billion in 2013. In fact, the research firm believes that fashion is going to be the trend setter in the e-tailing business. The fashion business has been just $559 million in 2013, but it is estimated to peg a growth to a monumental figure of $3 to $6 billion by 2016.