This is a boom time for the eCommerce sector in the country. Shopping online is an ever increasing habit. This is because of the ease of shopping, quality of products and good pricing that most customers are getting used to. Assocham, an industry association conducted a survey of around 3500 traders and organized retailers in the cities of Delhi, Mumbai, Chennai ,Bangalore, Ahmedabad and Kolkata. The results of the survey show some of the new trends in online retailing.
1. Indian eCommerce market valuation:
The report suggests that the market valuation of the Indian eCommerce market is valued at $16 billion today, all the way up from the $2.5 billion valuation in 2009. This valuation is expected to reach $56 billion by 2023.
2. Growth Factors:
The Assocham report also shows that this ecommerce growth is being driven by many different factors. Some of them are increasing internet penetration in the country (150 million users), variety in payment options, online retail, slower economic growth and increasing inflation. Slow economic growth and inflation has made many customers price conscious and ecommerce websites allow users to get more bang for their buck with lower prices, discounts and other promotions.
3. Most popular product categories:
The categories which saw the most transactions in 2013 were electronics and gadgets, apparel, jewellery, home and kitchen appliances, lifestyle accessories etc. The most popular categories were the tech and fashion which include products like mobile phones, tablets, accessories, mp3 players, digital cameras and jewellery.
4. Geography and Demographics of Indian Shoppers:
The report says that Mumbai was the top city when it came to the number of online shoppers in the country. Delhi and Kolkata followed. When it comes to age groups, 35% of the online shoppers belong to the 18-25 year old segment, 55% from 26-35 segment, 8% from 36-45 and 2% from 46-60.
5. Reasons for reluctance towards online shopping:
While eCommerce in the country shows promise, there are still many reasons for people to be reluctant to shop online.
1. Delivery costs too high (20% of the respondents)
2. Lack trust of products being delivered in good condition (15%)
3. Unavailability of credit and debit cards (10%)
4. Lack of trust when it comes to sharing financial information online (25%)
5. Research online but buy offline (30%)
Source | IamWire