Likely to touch $6 bn by 2015, Indias e-commerce market among fastest growing in APac: Gartner

Written by fe Bureau | Bangalore | Updated: Oct 17 2014, 06:47am hrs
With online retail catching the fancy of India's 400 million internet users, the domestic e-commerce market is expected to touch $6 billion in 2015, a 70% increase from $3.5 billion in 2014, making the country one of the fastest growing e-commerce markets in the Asia-Pacific region, estimates global research firm Gartner.

India is one of the fastest-growing e-commerce markets in Asia-Pacific, said Praveen Sengar, research director at Gartner. India represents a $3.5-billion market, growing at approximately 60-70% every year. It represents less than 4% of the total retail

market.

According to Gartner, there has been an uptick in mobile commerce as well, with marketplaces, consumer product goods, and food and beverages companies investing in mobile commerce. About 30% of traffic for e-commerce sites come from mobile and tablets.

The digital commerce platform market is maturing; incumbent vendors are investing in building out their commerce platforms, and those in adjacent areas, such as search, order management and marketing both through organic development and acquisition, said Sengar.

Vendors are increasingly focused on execution and winning new customers, sometimes at the expense of articulating future vision. Merger and acquisition activity is increasing, resulting in fewer digital commerce platform options in the market, but also serving to extend the commerce platforms of the established vendors.

Digital companies will expand investments in personalisation, digital marketing, web analytics and big data, given that India has approximately 200 million users on social networks, which makes it an important channel to understand and engage with customers.

The domestic e-commerce sector has been witnessing a stiff battle between Flipkart, Amazon and Snapdeal to gain the pole position. On the one hand, the e-tailers are going all out to win customers with deep discounts to the tune of 70% while, on the other, they are spending significantly on ads and marketing to

penetrate deeper into the customer base.

According to industry estimates, Flipkart, Snapdeal and Amazon together are likely to spend over Rs 100 crore towards advertisements this festive season, which has also witnessed mega discounts being offered by the e-tailers, much to the dismay of their brick-and-mortar counterparts. The physical stores have time and again accused the e-tailers of undercutting them.

Fast and furious

According to Gartner, there has been an uptick in mobile commerce as well, with marketplaces, consumer product goods and food and beverages companies investing in mobile commerce

About 30% of e-commerce traffic comes from mobiles and tablets

Digital companies will expand investments in personalisation, digital marketing, web analytics and big data, given that India has approximately 200 million users on social networks