Helped by increasing internet, mobile penetration and growing acceptability of online payments, e-commerce market in India is likely to touch $38 billion mark in 2016, a study revealed here on Friday.
The study done by the industry lobby Associated Chambers of Commerce (Assocham) stated it is likely that there will be a huge 67 percent jump in 2016 over the $23 billion revenue for 2015.
The industry has witnessed a growth of 52 percent over 2015 and has emerged as one of the fastest growing sectors.
“Increasing internet and mobile penetration, growing acceptability of online payments and favorable demographics has provided the e-commerce sector in India the unique opportunity to companies connect with their customers,” the Assocham paper said.
Releasing the paper, Assocham secretary general D.S. Rawat said India’s e-commerce market was worth about $3.8 billion in 2009, it went up to $17 billion in 2014 and to $23 billion in 2015m, and is expected to touch a whopping $38 billion mark by 2016.
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 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 paper revealed that Mumbaikars have left behind all other cities in India shopping online in 2015. While Delhiites rank second, Ahemdabadis rank third. Bengaluru residents rank fourth and Kolkata people rank fifth in their preference for online shopping in 2015.
“The customer is connected 24×7 through their smart phones, tablets and other mobile devices which is leading to a gradual evolution of e-commerce into mobile commerce and there is an issue of convenience which also leads to impulsive buying,” Rawat added.
The most important contributing factor to the rapid growth of digital commerce in India is the increase in the use of smartphones. Mobiles and mobile accessories have taken up the maximum share of the digital commerce market in India, added the Assocham paper.
Almost 45 percent of online shoppers reportedly preferred cash on delivery mode of payment over credit cards (16 percent) and debit cards (21 percent).
Among the age segments, 18-25 age group has been the fastest growing segment online with user growth being contributed by both male and female segments, the study added.