ccording to a recently released report by Google, the Indian online shopping market is all set to touch $15 billion by 2016.
Back in 2012, the size of this market was $8 million and is currently around $35 million. The Indian online shopping market has registered over 12x growth over the past 4 years.
According to Google's annual online shopping growth trends report, done in collaboration with Forrester Research, the online shopper base in India will reach 100 million by 2016. 50 million new buyers are expected to join the online shopping bandwagon from Tier 1 and tier 2 cities, the report says.
Rajan Anandan, MD, Google India, said that India has tremendous opportunity in mobile transactions as we are adding 6 million new users to the internet every month, most of them on the mobile phone. Mobile is indeed expected to be the game changer for the Indian online shopping space. Major players like Snapdeal are already clocking more than half their transactions through mobile.
The report also revealed that women buyers in tier 1 cities are far more active than male buyers, and outspend men by 2x. Women shoppers are also adding sheen to fast emerging online shopping categories like apparels, beauty and skincare, home furnishing, baby products and jewellery. The research finding is consistent with search query trends seen on Google which showed query volume for apparels growing at 64 per cent.
According to Nitin Bawankule, Industry Director for Ecommerce, Local and Classifieds, Google India, "Though the shopper confidence in online buying has gone up, challenges like unsatisfactory experience, last mile connectivity and lack of confidence in online payment remain." This is apparent from the fact that 50 per cent of all online transactions in India are still Cash-on-Delivery (COD). The report also found that 62 per cent people who have shopped online have not been satisfied with their experience and most of such grievances came from tier 2 down cities.
Back in 2012, the size of this market was $8 million and is currently around $35 million. The Indian online shopping market has registered over 12x growth over the past 4 years.
According to Google's annual online shopping growth trends report, done in collaboration with Forrester Research, the online shopper base in India will reach 100 million by 2016. 50 million new buyers are expected to join the online shopping bandwagon from Tier 1 and tier 2 cities, the report says.
Rajan Anandan, MD, Google India, said that India has tremendous opportunity in mobile transactions as we are adding 6 million new users to the internet every month, most of them on the mobile phone. Mobile is indeed expected to be the game changer for the Indian online shopping space. Major players like Snapdeal are already clocking more than half their transactions through mobile.
The report also revealed that women buyers in tier 1 cities are far more active than male buyers, and outspend men by 2x. Women shoppers are also adding sheen to fast emerging online shopping categories like apparels, beauty and skincare, home furnishing, baby products and jewellery. The research finding is consistent with search query trends seen on Google which showed query volume for apparels growing at 64 per cent.
According to Nitin Bawankule, Industry Director for Ecommerce, Local and Classifieds, Google India, "Though the shopper confidence in online buying has gone up, challenges like unsatisfactory experience, last mile connectivity and lack of confidence in online payment remain." This is apparent from the fact that 50 per cent of all online transactions in India are still Cash-on-Delivery (COD). The report also found that 62 per cent people who have shopped online have not been satisfied with their experience and most of such grievances came from tier 2 down cities.
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