Rise of online shopping in India:
The e-commerce is one of the magical thing that happened to Indian online business scenario. It is creating an entire new chapter for Indian economy, which has a very big potential and is fundamentally changing the way of traditional businesses are done. The indian consumer mentality is changing fast, aiding to the growth of this industry.
To grow from $2.9 bn to $100 bn in 2020, market capitalization of internet businesses may hit $160 bn.
Indian e-commerce website helps to evolve rapidly
Today e-commerce companies like Flipkart, Snapdeal and Amazon are very popular e-commerce website for Online shopping and these are also recognized as the major players in this industry.According to a research studies (according to an Assocham-Pricewaterhouse Coopers study) India’s e-commerce industry is likely to clock a compounded annual growth rate of 35% and cross the$100-billion mark over the next five years, from $17 billion at present. Riding on the strong growth momentum of 2015, the e-commerce sector is estimated to see a 72% jump in the average annual spend on online purchases per individual in 2016, from the current level of 65%,
This high-end growth can be attributed to few recent facts –
- Low-priced smartphones and 2G/3G/4G networks has enabled internet access everywhere to access e-commerce website, even in the rural areas. e-commerce websites are increasing in Tier II and Tier III cities and growing fast.
- Rise of the middle-class people, who have less time. They are more prone to do everything on their smartphones, even shopping.
- On e-commerce website free home Delivery, deals, discounts, and offers of such have given a boost to this industry.
- Increase in the use of Mobile wallets.
- With people using technology to shop, more e-commerce website online retail stores are opening up, making way for more employment.
Future of e-commerce industry in India
Analysts at Morgan Stanley believe that India’s internet market can grow to $137 bn by 2020 (a CAGR of 43 per cent) and e-commerce will form the largest part of the internet market at $102 billion. In relatively more advanced markets like China and the US, top 30 listed internet companies account for 12 per cent and four per cent, respectively, of the total market capitalisation. Internet commerce tends to account for more than 50 per cent of the market cap among listed internet firms. Morgan Stanley expects India’s e-commerce market (revenues) to grow from $2.9 bn in 2013 to over $100 bn by 2020, making it the fastest growing e-commerce market in the world.