Growth of eCommerce Industry In India

Let’s talk about the boom in eCommerce industry.

India is 10 years behind China. E-commerce is gathering momentum, driven by explosion in internet usage. New platforms are sprouting by the day, thereby enlarging the size of the cake. However, we have observed recently that the e-commerce and e-retailing discourse is saddled with lack of common vocabulary, select (incomplete) data sets and a lot of hype, which are hindering a fair analysis of the size of the industry.

Throughout India’s short history, the country has been a land of “haves” and “have-nots”.  However, with the rise of small and medium enterprises, foreign direct investment, and India’s own powerful multinational corporations creating millions of new jobs, a new generation of globally-minded Indian consumers has been created. These consumers are spread across the country. Furthermore, access to many global and domestic brands is limited to major metropolitan regions, such as Delhi, Mumbai, and Bangalore. Therefore, this growing middle class is increasingly turning to e-commerce as the primary outlet for sophisticated consumer products and services.

India had an internet user base of about 354 million as of June 2015[ and is expected to cross 500 million in 2016.Despite being the second-largest userbase in world, only behind China (650 million, 48% of population), the penetration of e-commerce is low compared to markets like the United States (266 million, 84%), or France (54 M, 81%), but is growing at an unprecedented rate, adding around 6 million new entrants every month. The industry consensus is that growth is at an inflection point.

This tells us that India has a lot of potential for growth in the eCommerce market. Active users of ecommerce websites are localized in India, mostly metro cities and tier one and tier two cities will only use these websites. So, you still have sizable number of population to target to. Outsource Data Services or popularly known as ODS can help you get on this juggernaut of ecommerce. We can build websites for you and we can upload products to them and get your website store and up and running.

According to a study done by Indian Institute of eCommerce, by 2020 India is expected to generate $100 billion online retail revenue out of which $35 billion will be through fashion e-commerce. Online apparel sales are set to grow four times in coming years.

India’s retail market is estimated at $470 billion in 2011 and is expected to grow to $675 Bn by 2016 and $850 billion by 2020, – estimated CAGR of 10%. According to Forrester, the e-commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over 57% between 2012–16.

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