E-commerce majors like Flipkart and Snapdeal, during this period, cut down on discounting and advertising spends to minimise cash-burn. Across a period of six quarter from Q1 2015 to Q2 2016, e-commerce GMV was at its peak of $17 billion in Q4 2015.
According to the report, in order to achieve a six-fold growth in GMV to $80 billion by 2020 from $13 billion in 2015, the share of fashion needs to rise from the current 20% to 36% in the overall market size, alongwith a larger share of Tier 2 and Tier 3 shoppers against the current trend where metros have a strong hold. Currently, electronics has the largest share at 73% which will moderate to 60% by 2020.
In 2015, electronics was leading the pack with a 73% market share, followed by fashion and home contributing 20% and 3.5%, respectively. Also, by 2020, the internet penetration in the country is expected to improve which will lead customer in Tier 2 cities to come online and avail greater selection in the fashion category. Mature markets like China and the US see 30-35% online penetration for fashion against 3% in India in 2015.