Digital commerce market to clock higher growth in 2014: IAMAI

Written by PTI | Mumbai | Updated: May 11 2014, 17:44pm hrs
The domestic digital commerce market is expected to clock a higher growth this calendar year on the back of better internet penetration, increase in trust level and pricing advantage, according to industry body IAMAI.

"We are certainly hoping to post a higher growth this year over the last year on account of a host of factors, including a higher number of internet users in the county," Internet & Mobile Association of India (IAMAI) Associate Vice President Nilotpal Chakravarti said here.

He, however, refused to guess an estimate of growth. "We are still in the process of collating data," he said.

The association is in the process of finalising its outlook report for 2014, which is expected to be released next month.

Growing number of internet users, a more secure and convenient transaction system, coupled with lucrative offers and a 24x7 delivery system will drive the growth, he said.

According to IAMAI, the digital commerce market grew by 33 per cent to Rs 62,967 crore last year as against Rs 47,349 crore during the corresponding period of 2012.

Of the total digital commerce business last year, travel business accounted for 71 per cent valued at Rs 44,907 crore.

"People are taking online business because there was a trust factor involved into it, which is a good news for the digital commerce industry", he said.

At present, there are over 2.5 crore online buyers and more than 21.3 crore internet users in the country, according to the Association.