Ecommerce, News

Indian eCommerce market will reach USD 56 Bn by 2023: Assocham Survey

ecommerceA few years back, when a segment came up with the idea of selling things online, nobody was sure whether the concept would be able to attract audience or not. But, in the last couple of years, the Indian eCommerce industry has given a space to flourish not only the existing platforms but also some of the very niche categories.

Recently, Assocham did a survey of around 3500 traders and organised retailers in Delhi, Mumbai, Chennai, Bangalore, Ahmedabad and Kolkata. The survey identifies the current status of the industry along with the trends that the online shoppers and Internet retailers are following in the past one year.

Here is a brief overview:

1. Indian eCommerce market valuation

According to the report, the India’s eCommerce market, which stood at USD 2.5 Bn in 2009, is now valued at USD 16 Bn in 2013 and is expected to reach USD 56 Bn by 2023.

2. Factors driving this growth

This growth is said to be driven by various factors which includes:

– Increasing internet penetration with an internet base of 150 Mn as of August 2013

– Availability of more payment options

– Booming online retail

– Slower economic growth and

– Spiralling inflation.

“Having close to 10 per cent of Internet penetration in India throws a very big opportunity for online retailers to grow and expand as future of Internet seems very bright,” said Assocham Secretary General D S Rawat.

Also, aggressive online discounts, rising fuel prices and availability of abundant online options played a crucial role in attracting shoppers.

2. Categories shopped most in year 2013

The categories which attracted the online shoppers the most in the last one year include electronics gadgets, apparel and jewellery, home and kitchen appliances, lifestyle accessories like watches, books, beauty products and perfumes and baby products.

The tech and fashion category topped the list for selling more products in the year which includes mobile phones, iPads, accessories, MP3 players, digital cameras and jewellery, among others.

3. Geographic and Demographic Status

As per the survey, among the cities, Mumbai topped the list of online shoppers followed by Delhi, while Kolkata ranked third. The graph below represents the behavior of online shoppers in various age groups:

4. Why people are still reluctant to purchase online?

As per the survey,  some find the delivery costs too high (20%) while others lack trust on whether products would be delivered in good condition (15%). 10% cited reasons such as unavailability of credit and debit cards with them while 25% still find it risky to share their financial information online. A majority, 30% prefers only to research products and services online rather than ordering.

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