Indian Ecommerce To Cross $16B Mark In 2015; CoD Accounts for 45% of all payments: ASSOCHAM
The Associated Chambers of Commerce of India (ASSOCHAM) in association with Deloitte has came up with an interesting study which provides us with a bird eye’s view on the current state of Indian ecommerce.
As per the research,Indian ecommerce market was pegged $13.6 billion last year, and by the time 2015 ends, it will cross $16 billion mark. Ecommerce transactions grew by 53% last year, and 61% of all transactions happened in the travel niche.
Citing another Deloitte report on the global retailing, ASSOCHAM said that globally,Mcommerce will cross$638 billion by 2018, and if viewed from the Indian context, then that’s the future of ecommerce. However, they warned that Mcommerce in India needs several major reforms, including features such as price comparison, better search and easy navigation if we want customers to buy on their mobiles.
Some interesting highlights from the report:
– Since 2011, Indian ecommerce market has grown at a CAGR of 37%. Within the next 5 years, Indian ecommerce market would be worth $100 billion, thereby contributing 4% to the national GDP.
– Globally, B2C ecommerce crossed $1.5 trillion in 2014, thereby having a growth of 20% compared to 2013
– Globally, mcommerce will account for $638 billion of transactions; In India there are 235 million smartphone users
– With a valuation of $11 billion,Flipkart is India’s biggest ecommerce portal; with 20 million users,PayTmis India’s biggest mobile wallet and mcommerce company; with 90% market share,BookMyShowis country’s biggest online ticket aggregator and seller.
– 50% of revenues generated by Flipkart is via mobile; whereas its 70% in case of Quikr.
– Indian ecommerce companies lost around Rs 10 billion in 2014, owning to heavy discounts and special prices. This trend is one of the most dangerous for Indian ecommerce market.
– In 2014, almost Rs 200 billion of investments solely occurred due to heavy valuations of ecommerce companies. For example, Flipkart raised $1.9 billion in three rounds, despite losing Rs 4 billion in revenues.
– Globally, Amazon is #1 ecommerce portal with revenues of $61 billion in 2013.
– Technology has been the major driving force for Internet companies in India, as Cloud, Mobile and Social Media continue to hold dominance over this sector.
–Digital Advertisementmarket in India will swell to Rs 35.75 billion by 2015
– More and more offline retailers are now adapting to ecommerce
–45% of all payments are done via Cash on Delivery (CoD)for ecommerce transactions. 21% opt for Debit Cards while 16% opt for Credit Cards. Rest 8% are commanded by Net Banking and Mobile Wallets
The report acknowledges the fact that online marketplaces have evolved and developed more rapidly, compared with pure play ecommerce portals. Additionally, issues related with taxation, and cyber security was also discussed at length.