Top News

Online retail in India currently stands at Rs 2,000cr; to reach Rs 7,000cr by 2015: Assocham

According to Assocham’s a random survey, the online retail industry
in India is likely to be worth Rs 7,000 crore by 2015 due to easy availability
of broadband services and increasing internet penetration across the country. The
survey was conducted during January 2011 to June 2011 in 10 cities in which
5,000 shoppers were interviewed.

According to Assocham’s a random survey, the online retail industry
in India is likely to be worth Rs 7,000 crore by 2015 due to easy availability
of broadband services and increasing internet penetration across the country. The
survey was conducted during January 2011 to June 2011 in 10 cities in which
5,000 shoppers were interviewed.

According to the findings, Buying and selling trends
received from leading online shopping portals indicate the online retail market
currently stands at Rs 2,000 crore and is growing at a steady annual rate of 35
per cent. India is set to become the third largest nation of internet users in
the next two years with a large chunk of youngsters eager to adopt new
technologies with rapidly changing lifestyles.

“A booming economy and rising disposable incomes have
contributed to the evolution of online shopping. Earlier, most online shoppers
used to evaluate options by gathering information on available products and
prices or buy low-value items like gift products but finally opted for final
transactions at the traditional retail outlets. But now the trend is changing
fast. Leading companies have gauged the potential of online retail industry and
are gearing up fast to cash in,” DS Rawat, secretary general of The Associated
Chambers of Commerce and Industry of India (ASSOCHAM) while releasing findings
has said.

The survey conducted by ASSOCHAM Social Development
Foundation (ASDF) involved interactions with 500 shoppers in the age group of
16 to 35 years each in ten cities of Delhi, Mumbai, Chennai, Bangalore,
Kolkata, Ahmedabad, Chandigarh, Ludhiana, Lucknow and Jaipur.

About 40 per cent of those surveyed across the aforesaid
cities prefer to shop online considering convenience to shop anytime in 24
hours and one can collect detailed product information. Besides, one can
research variety of products available and can easily compare prices from
different vendors anywhere in the world. Majority of consumers also said they
shop online to purchase products that cannot be found in malls and the local
markets.

Consumers in Mumbai ranked at the top among top five cities,
with almost 65 per cent of Mumbaikars saying they prefer shopping online and
citied rising fuel prices as one of the primary reason they do not want to
loiter around malls, traditional shopping hubs. Delhi ranked on third spot
after Ahmedabad. 45 per cent of Delhiites prefer shopping online, 30 per cent
prefer to shop in traditional markets like Sarojini Nagar, Green Park, Lajpat
Nagar central market, Karol Bagh, Janpath, Paharganj, Sadar Bazar and Chandni
Chowk. Around 15 per cent of respondents said they prefer to visit a mall for
their shopping needs while, 10 per cent said they prefer shopping at specialty
stores.

Facilities like free shipping, product ratings/reviews,
multiple payment options, product demonstration videos and free return policy
largely influence the purchasing decision of consumers shopping online,
concluded the survey.

Of those who are averse to shopping online cited
various reasons like prefer to research products and services online and then
actually buy them from a store (30 per cent), find delivery costs too high (20
per cent), don’t want to share personal financial information online (25 per
cent), lack of trust on whether products would be delivered in good condition
(15 per cent), don’t have a credit or debit card (10 per cent).

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close