Magazines Archives - 2011 May

India’s e-commerce sector set for 47% growth in 2011
Story 8 - E-commerce

INDIA’S e-commerce market is slated to see a 47% growth rate this year, to Rs46,520 crore (US$10.3 billion), spurred by online travel purchases. According to a new report by the Internet and Mobile Association of India (IAMAI), the country’s e-commerce sector has grown from Rs8,146 crore in 2007 to an estimated Rs31,598 crore last year.

Leading the e-commerce growth in India is the online travel sector, which comprises travel bookings, hotel accommodations and tour packages, making up about 80% of the total e- commerce market last December, valued at Rs25,258 crore. This year, the sector is expected to continue to lead growth and reach Rs37,890 crore, the association revealed.

Financial services via the Internet has also seen substantial growth from Rs1,540 crore in 2009 toRs2,000 crore last year. The association anticipates a 34% growth in the sector to Rs2,650 crore by the end of this year.

“This behaviour has evolved recently and is expected to blanket different kinds of products and services purchased over the Internet and mobile networks. While online travel will continue to make ticketing, [generally] Indian consumers aren’t shopping online. Large numbers of surfers use the Internet to look for information about the product or service they want to buy, followed by a visit to a physical shop [to make the purchase],” it maintained.

Actual e-tailing activities still takes the back seat in the country’s e-shopping scene, the report continued, despite a promising 62% growth to Rs2,700 crore this year. In 2009, the sector comprised 7.82% of total online purchases, led by purchases of consumer electronics.

“Barring few services such as online ticketing, [generally] Indian consumers aren’t shopping online. Large numbers of surfers use the Internet to look for information about the product or service they want to buy, followed by a visit to a physical shop [to make the purchase],” it maintained.

The IAMAI also predicts that active Internet users in rural parts of India will nearly double by year-end, to 24 million — a 98% growth from 12.1 million last December. It cited a growing awareness of the Internet, easier online access as well as the increase in Internet use for entertainment, communication and instant messaging, as key drivers for growth in the country’s rural areas. ra

To view other stories, get a copy of Retail Asia. To subscribe, please download the subscription form from http://www.retailasiaonline.com/subscription.html