Increasing Internet penetration and growing preference for online shopping is expected to push the digital commerce market to over Rs. 1 lakh crores this year, a report said on Wednesday.
The digital commerce market in the country had grown 53 percent to Rs. 81,525 crores in 2014, it said.
This is set to rise further at 33 percent and cross Rs. one lakh crores by the end of 2015, added the joint report by IAMAI and IMRB International.
The digital commerce market has grown steadily from Rs. 26,263 crores in 2010 to Rs. 47,349 crores in 2012 to Rs. 53,301 crores in 2013.
Online travel accounted for Rs. 50,050 crores or over 61 percent of the total market, while the online retailing segment grew to 29.4 percent.
“Significantly, online retailing has grown by around 1.4 times over 2013 and constitute nearly 29 percent of the overall share,” the report said.
Mobiles and mobile phone accessories contributed the highest (41 percent or Rs. 9,936 crores) in the sales of e-tailing segment, followed by apparels, footwear and personal items (20 percent or Rs. 4,699 crores) in 2014.
Consumer durables, along with kitchen appliances added another 14 percent or Rs. 3,404 crores, the report said.
Digital consumer devices like laptops and tablets, home furnishings and books contributed another Rs. 2,780 crores, Rs. 1,059 crores and Rs. 648 crores, respectively.
The report said 45 percent respondents, who shopped online, preferred cash on delivery as a mode of payment.
Another 21 percent said they preferred payment through debit card, 16 percent credit card, 10 percent Internet Banking, and eight percent preferred other modes like prepaid cash cards, mobile wallets.
The report said segments like financial services, matrimony and classifieds grew at 5.5 percent and one percent in 2014 , respectively.
“The financial services market has grown at a CAGR of 20 percent since 2010. This market was valued at Rs. 4,508 crores.
On the other hand, the classifieds market has seen significant growth and is valued at Rs. 896 crores by December 2014,” the report said.
Other online services market has grown with a CAGR of 73 percent since 2010 and was valued at Rs. 2,025 crores by 2014.
This segment includes emerging service categories like online entertainment ticketing, online commuting, online food and grocery delivery.
Online food delivery market has seen the maximum growth (40 percent) over the last year in this segment and it is now valued at Rs. 350 crores by the end of 2014, it said.