Growth of e-Commerce in IndiaMay 2013Digital Insights
Overviewe-Commerce in India has evolved over the past decade in terms of magnitude.Total digital commerce market of India was valued at INR 47,349 crores in December2012 and is expected to grow by 33% and reach INR 62,967 crores by end of the year2013.Below are the industry segments that have shown a major growth during last few years-• Online Travelling• e-Tailing• Financial Services• Classifieds• Other Segments
Industry Segments• Online Travelling – This segment consists of Domestic & International Air tickets, Railway tickets, Bustickets, Hotel Bookings and Tour Packages/Travel Insurance.• e-Tailing – This includes electronic retailing of consumer items like Books, Apparels &Footwear, Jewellery & Personal/Healthcare Accessories, Camera & Camera Accessories, ConsumerDurables & Kitchen Appliances, Home Furnishings, Mobile Phones & Mobile Accessories, Laptops/NetBooks/Tablets etc.• Financial Services – The elements here include Insurance related services, Utility Bill paymentsincluding Mobile Bill Payments and Online transactions for Shares & Securities trading.• Classifieds – This segment includes B2C Classifieds like Online Jobs & Matrimony, Other B2Ccategories like Car, Real Estate and B2B Classifieds.• Other Segments – This comprises emerging online services like Online EntertainmentTicketing, Online Food & grocery Delivery.
e-Commerce PenetrationTotal Internet Users(88.9 Million)Active Internet Users(33.8 Million)Looking for information(19.6 Million)Shopping Online(14.3 Million)
Out of 19.6 million who accessed internet (in the year 2012), forfinding details related to a specific product or a service, nearly 73%(14.3 million) actually bought a product or a service in the end.
The percentage of people who access internet only for lookinginformation related to various products and services have decreasedfrom 45% in 2009 to 27% in the year 2012.
Debit cards/Net banking and Credit Cards remainingthe top two most preferred modes of payments. Cash on Delivery isgrowing very rapidly though.
Online TravellingOnline Travelling has on an average grown by 32% from INR 14,953 Crores in 2009 to INR34,544 Crores in 2012 and is estimated to grow by another 30% and be valued at INR44,907 Crores by the end of December 2013.50%39%6%2% 2% 1%Domestic Air TicketsRailway TicketsInternational Air TicketsHotel BookingsBus TicketsTour Packages/Travel Insurance
e-TailingThe e-Tailing category has grown from INR 1,550 Crores in the year 2009 (Jan-Dec 2009)to INR 6,454 Crores in year 2012 (Jan-Dec 2012). This category is estimated to cross theINR 10,000 crore mark in the year 2013.25%21%19%15%8%5%4%3%Laptops/Net books/TabletsApparels + FootwearMobile Phones + Mobile AccessoriesCameras + Camera AccessoriesConsumer Durables + Kitchen AppliancesBooksJewellery + Personal/Healthcare AccessoriesHome Furnishings
Financial ServicesFinancial services market was valued at INR 2,886 Crores in 2012 and is expected to growby 25% and reach to INR 3,607 Crores by the end of year 2013.40%31%29% Utility Bill Payments (including Mobile Bill)Shares & Securities TradingInsurance Related Services
ClassifiedsClassifieds market has seen a significant growth and is estimated at INR 2,354 Crores in2012 and reach to INR 3,061 Crores by the end of year 2013.58%22%13%7% Online JobsOnline MatrimonyB2B ClassifiedsOther B2C Classifieds (Car, Real Estate etc.)
Mode of PaymentMajority of the online shoppers use Debit cards/Internet banking as their preferredmode of payment for shopping online. Payment through credit cards, follow closely atsecond position and Cash on Delivery on third position.Debit Card/Net BankingCredit CardCash on DeliveryMobile Payment and Others Methods0.0%10.0%20.0%30.0%30.0%27.0%24.0%19.0%
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