The retail sales in India are growing at a compounded annual rate of 15% since the year 2014, an Assocham-Resurgent India joint study said.
Total retail sales in India are set to hit $1.25 trillion by the end of this year — more than half of the country’s GDP of $2.3 trillion — as an increasingly digital nation spur people to shop more and more online, a study said. The retail sales in India are growing at a compounded annual rate of 15% since the year 2014, an Assocham-Resurgent India joint study said. “The total retail sales in India will likely to increase from the $717.73 billion during CY 2014 to touch $1,244.58 billion by 2018…,” the study said.
Also, in terms of online retail sales, about 100 million consumers purchased online in 2017. The study noted that the online retail sales consumers are expected to cross 120 million by 2020 with the rise of digital natives, better infrastructure in terms of logistics, broadband and internet-ready devices to fuel the demand in e-commerce.
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The study findings revealed that in 2017, Bangalore topped among the cities in India where people preferred shopping online, followed by Mumbai and Delhi. “In other cities like Bangalore, its population chose to buy daily routine products through e-shopping which will go to 75% this year for apparel, gift articles, magazines, home tools, toys, jewellery, beauty products & sporting goods categories,” said the study.
Likewise, Mumbai’s share was 68% in the last year, which might go up another 72% in this year for electronic gadgets, accessories, apparel, gifts, computer peripherals, movies, hotel booking, home appliances, movie tickets, health & fitness products and apparel gift certificates etc, it noted. In Delhi, 65% of its population chose to buy daily routine products through e-shopping in 2017-18, which is likely to reach 68% by 2018-end.
The report added that mobile commerce will become more important in 2018 as most of the companies are shifting to m-commerce. “Mobile already accounts for 30-35% of e-commerce sales, and its share will jump to 50% by 2020,” it said.
E-commerce is a big business and getting bigger every day. Online shopping has been embraced by Indians with close to 25-30 million adults making a purchase via the internet in the last year. The paper said, online shoppers and buyers starting with a base age of 18 are become more involved with ecommerce in their early teens. “There is a surge in the number of people shopping on mobile across India with tier II and III cities displaying increased dominance. In fact, 50% of our traffic is coming from mobile and a majority of them are first time customers,” the paper added.
The Assocham-Resyrgent India study said that the year 2018 will see large scale growth in the Indian e-commerce sector with increased participation from people across the country. This industry will continue to drive more employment opportunities and contribute towards creating more entrepreneurs through the e-commerce marketplace model, noted the study.