IOT
Indian industry body forecasts unprecedented growth for e-commerce in 2018
This has been predicted in a study report jointly conducted by the Indian industry body Assocham and Deloitte.
India’s e-commerce market is likely to become more than USD 50 billion in value by the end of 2018 from current $38.5 billion. This has been predicted in a study report jointly conducted by the Indian industry body Assocham and Deloitte.
Internet penetration among Indian population and inclination towards e-shopping has made the market more prosperous.
“Heavy discounts, advanced shipping and hassle free payment options and the push into new international markets by e-businesses are the major drivers of this unprecedented growth,” said the report.
However, the report also highlights that majority of the customers go for cash on delivery (CoD) mode of payment. Lack of trust in online transactions, limited adoption of credit and debit cards, and security concerns, among others reasons which made customers apprehensive about e-payment.
“More than 50 per cent of online transactions are done on cash on delivery method and it is available across 600 cities and towns of India,” the joint study pointed out.
On the increase in preference of mobile transactions, the study said one out of three customers currently makes transactions through mobiles in tier-1 and tier-2 cities.
In 2017, 82 per cent of shopping queries were made through mobile devices, compared to 76 per cent in 2016, added the study, indicating the increasing mobile transactions.
The survey highlights that 28 per cent of regular shoppers are in 18-25 age group, 42 per cent in 26-35, 28 per cent in 36-45 and 2 per cent in the age group of 45-60.
While 65 per cent of online shoppers are male, 35 per cent are female. The products that were highest sold in 2017 included mobile phones, apparel, food items and jewellery, among others, it said.
As per the study, there would be more than a seven to ten fold increase in revenue generated through e-commerce as compared to last year with all branded apparel, accessories, jewellery, gifts and footwear available at cheaper rates and delivered at the doorstep.
