Backed by growth in e-commerce business, financial services, travel & hotels and digital media, India’s online consumer spending is likely to grow 2.5 times to around $100 billion by 2020, a report said.
Backed by growth in e-commerce business, financial services, travel & hotels and digital media, India’s online consumer spending is likely to grow 2.5 times to around $100 billion by 2020, PTI cited a report compiled by Boston Consulting Group in association with the search giant Google. Nearly 75-80 percent Indian still don’t spend money online on all these services available online, the same report said. Only 20 percent spend a significant 60-65 percent of the total spends online, the report added. Digital transactions account for Rs 40 billion in India currently. Apparel and accessories, consumer electronics, durables, food and grocery will fuel this growth.
Women, new shoppers to lead the front
Women, new users from non-tier 1 cities and shoppers above 35 years will be leading the front to drive the digital growth. Nearly 2.5 times increase will be witnessed for women shoppers and old shoppers will increase above three times in today’s comparison, the report said.
Cities beyond metros major gainers
The smaller cities beyond metros will see online shopping taking off in a big way as their infrastructure improves. These cities will comprise 50 percent of the total base of online shoppers by 2020, the report said. The continuous improvement in the infrastructure of small cities will help the online shopping ecosystem to add more subscribers to the online shopper base. The report also informed that only one in the five online users in India shop for products on the internet, one is six book travel tickets online and a negligible percentage of users pay for accessing the digital media. Various studies show that a large section of the Indians shop on mobile apps or websites. The evolution of mobile technology has opened various avenues for the advertisers to showcase their products online at the lowest cost. In view of this, more and more e-commerce firms are coming out aggressively to cater to the population that spends a large chunk of their day on their mobile phones.