According to a Boston Consultancy Group report, urban online shoppers will increase from 6% (in 2013) to 14% by 2016. 25% of the travel and tourism industry has already moved to the online domain now.
Internet penetration is increasing both to small towns as well as rural areas across the length and the breadth of India now. Out of the total internet users, above 34% are from small towns while 25% are from rural areas.
About 57% of the goal urban internet users are 25 years and above, out of which 45% access internet through their mobile phones onlt.
The study also indicates that internet user base will increase from 28% to 47% by 2016.
One would think the rise in online shopping is only due to discounts. However, the study shows that other factors like convenience and access to a variety of options which were otherwise not available to them, are also significant factors that led to the adoption of online shopping.
How should an Indian Online Seller prepare for more growth?
Get onboard with the acceleration and join the bandwagon! Increase your product portfolio and add as many different products as possible to attract consumers. Discounts may be an attractive features, but consumers will pay premium for unique products provided they are of value.