Online shopping of physical goods in India will grow to $8.5 billion in 2016, with the number of online shoppers more than doubling to 40 million. Key factors driving this growth include increased mobile shopping, rising order values, growth of fashion e-commerce, and more online penetration in tier-2 and tier-3 towns. Women will also influence 35% of online sales, up from 7% in the previous year.

1. INDIA ECOMMERCE
LANDSCAPE
May 2015

2. ONLINE SHOPPING DEFINED IN
THIS PRESENTATION DOS NOT
INCLUDE TRAVEL, TICKETING &
FOOD ORDERING – ONLY
PHYSICAL GOODS COMMERCE
Sources:
IAMAI
Google
Delloitte
NSSO
Facebook
CNNIC
Industry sources
Comscore
FICCI
CMR
PayU
EMVantage

3. SUMMARY

4. ONLINE SHOPPING OF PHYSICAL GOODS IN INDIA WILL GROW TO
$8.5BN IN 2016. NUMBER OF ONLINE SHOPPERS WILL MORE THAN
DOUBLE TO 40 MN.

5. KEY FINDINGS
1. Last year there was a significant jump in
average order value as there was a
penetration of new categories like jewellery,
home décor etc. 2. Also, users are becoming
more comfortable buying higher priced items
online.
1. Last year was the rise of the fashion
category – fashion e-commerce GMV doubled
since 2012.
2. Given the young demographic which is
shopping for latest looks online and
increasing choice online – we estimate that
this category will see 400% growth in the next
3 years and rival electronics and mobile
category in GMV.
Fashion category doubled last year
Average order values climbing up rapidly

6. KEY FINDINGS
1. Mobile shopping infrastructure is
improving – smartphones, connectivity,
mobile websites and apps 2. People are
becoming more comfortable in ordering
higher priced items online
1. 35% of online GMV in 2016 will be
influenced by women
2. Key factor in this growth is increasing
supply of women specific categories e.g.
jewellery, lingerie, motherhood products
Mobile shopping is seeing phenomenal growth
Women influenced sales will grow 5x in next 3
years

7. RISE OF EMIS AND WALLETS
With increasing order values, we are seeing an uptick of EMI payments • 3rd
party wallets albeit a new phenomenon, have a strong value proposition and
will be quick to become popular – similar to China

8. GROWTH FACTORS
1. Tier 2 cities growing much faster in
eCommerce adoption than Tier 1 2.
Some states completely lagging in
ecommerce, waiting for infrastructure to
be put in place
1. Potentially 40M shoppers between
ages of 19 – 24 years, will start
spending money online 2. These
shoppers also have a propensity to
spend more money than Gen-X
shoppers
More penetration in Tier-II and Tier-III towns
New shoppers will come from the 40M+
Gen-Y FB users
20Mn
Gen-
X
20Mn
Gen-Y
+

9. ENOUGH HEADROOM FOR GROWTH
ONLINE RETAIL IS STILL A VERY SMALL PORTION OF RETAIL IN
INDIA

10. CURRENT MARKET
SCENARIO

11. GROWTH OF INDIA ONLINE SHOPPING

12. GROWTH OF INDIA ONLINE SHOPPING

13. GROWTH OF INDIA ONLINE SHOPPING

14. GROWTH OF INDIA ONLINE SHOPPING

15. OTHER OBSERVATIONS
1. ~200M of Indians will come online
in next 3 years
2. Majority of these will come online
on smartphones
3. E-Commerce companies are
building their brands, thus gaining
trust of users
1. Existing shoppers shop more
number of times than new shoppers (in
that year)
2. As India’s e-commerce market
grows the proportion of existing
shoppers will increase from 30% (in
2013) to 50% (in 2016)

16. TRENDS

17. MOBILE
THERE IS A TRAFFIC TO REVENUE GAP ON MOBILE ECOMMERCE IN
INDIA

18. WOMEN SHOPPERS A GROWING FORCE
1. Working women segment grew 43%
in 2013 and constitutes nearly 10% of
Active internet users in India.
2. Categories like baby care, home
décor, jewellery etc have traditionally
been influenced by women decision
makers. As more choice become
available more women are shopping
online.

19. GROWTH FACTORS

20. YOUNG INDIA WILL BECOME DOMINANT PRESENCE
IN ECOMMERCE
Young Indians (19-24yrs) are more comfortable with online services
e.g. FB and thus could potentially add upto 40M new shoppers in next
3 years – if we just take the Facebook users

21. ECOMMERCE FRIENDLY STATES
Top 3 e-commerce states
• Delhi-NCR
• Karnataka
• Maharashtra
Large states with very little
ecommerce presence:
• Bihar
• Uttrakhand
• Chhatisgarh
Top 10 cities:
1. Delhi
2. Bangalore
3. Mumbai
4. Pune
5. Hyderabad
6. Chennai
7. Kolkata
8. Ahmedabad
9. Jaipur
10. Panaji
Central & North-Eastern India appears to have low adoption of e-
commerce

22. CATEGORIES

23. PAYMENTS

24. INDIAN INFRASTRUCTURE
88% of the growth in India online shopping will come from more
Indians online

25. WORLDIGITAL IS A DISRUPTIVE FULL
SERVICE DIGITAL AGENCY. WE BELIEVE THAT
BOTH MEDIA & TECHNOLOGY ARE THE MOST
IMPORTANT FACTORS FOR BUILDING
BUSINESSES AND BRANDS IN THE 21ST
CENTURY.
414, SHIVAI PLAZA,
MAROL COOP INDUSTRIAL AREA
ANDHERI EAST,
​MUMBAI - 59
Freephone: [+91-
9167361963]
E-mail: Sheldon@worldigital.in