India to Have 100M Online Shoppers And a USD 15B E-tailing Market by 2016: Google


According to Google’s annual online shopping growth trends report released on Thrusday, done in a collaboration with Forrester Research, India will have 100 million online shoppers including 40 million women, by 2016. The number of online shoppers was 8 million in 2012 and is 35 million this year. This means there will be a growth factor of 12X between 2012 and 2016.


Google India announced the report via a Twitter Post.

Mobile is driving this growth in e-commerce and India is expected to cross 300 million internet users by end of the year. Rajan Anandan VP and MD, Google India said, ” Mobile is driving most if not all the growth on the Internet. All the big markets like China and the US, developed as Desktop markets, but India is being developed as a mobile market.”

See Also: E-Commerce in India – Past, Present & Future

The survey covered 6589 respondents covering 50 cities including tier 1, tier 2 and tier 3 cities. The growth in coming year will come from Tier 1 as 71 percent respondents in this segment will buy in the next 12-18 months. In Tier 1, women outspend men by two times. And, 1 in 4 women will be shopping via their mobile devices.

According to Google already 1 out of 3 people in tier 1 and tier 2 cities are transacting online via their mobile devices and in Tier 3 cities as half of the transactions happen via mobile devices. And, shopping queries has grown from 24 percent in 2012 to 57 percent in 2014.

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By 2016, Indian e-commerce market could have retail revenues of USD15 billion. Nitin Bawankule, Google India’s industry director for e-commerce, local, and classified said, “The consumer confidence to shop online has grown significantly in the last year and a half. ”

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

About 65 per cent people buy online due to convenience, 64 per cent buy because of the variety, and 60 per cent buy to improve social status. The report includes that electronics is a popular segment now and categories like Skin Care, Baby Care, and Home furnishings are growing rapidly.

The report also found that 62 percent people who shopped online have not been satisfied by their shopping experience. Most of the grievances came from Tire 2 down cities jumps from 58 percent in Tier 1 to 70 percent to Tier 2 cities. 67 percent people also highlighted that returning purchased item was complicated and expensive.

Google has come out with this report just in time for the Great Online Shopping Festival 2014, which is scheduled from 10th to 12th December this year. Every year online companies participate in GOSF, and run offers to attract the consumers in the country. Although it has turned out to be a disappointment for several online shoppers, it is to be seen how Google will manage it this year.

Graph Source: Indian Express