India is one of the fastest-growing e-commerce markets worldwide and is expected to hit $200 billion by 2026. The year 2017 concluded on a never before high with online selling market growing from $19.7 billion (INR 13 lakh cr approx) in 2015 to $38.5 billion (INR 24 lakh cr approx) in 2017, setting new benchmarks in the industry.
Customers enjoyed shopping from big brands across different categories on e-commerce marketplaces. The top in-demand products came under the Mobiles & Electronics umbrella with Fashion, Food items and beauty products following the list. So, let us have a look at these popular categories that customers flocked to in 2017.
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Mobiles & Electronics Continue To Rule
The Indian smartphone market grew around 25%, owing to high volumes of the affordable range of smartphones available in the market. Samsung remains the most preferred brand in the country at 26%, and Apple follows second with 15% share. On the other hand, the advancements in technology have also made the shopping of electronic goods online much easier.
Nowadays, most customers prefer buying large and small home appliances online because of their convenience and the enormous amounts of discounts that they get shopping online.
Apparel & Fashion Accessories Saw Huge Growth
According to recent studies, fashion and apparel industry generated the maximum online buying interest in the customers growing more than 72% over last year. As per a study, there is more than a seven to tenfold increase in revenue generated by online businesses as compared to last year.
Also, during various sale period brands such as Louis Philippe, Gap, Puma and Titan, among others witnessed around 5X growth. The reason behind this increase is the availability of branded apparel, accessories, footwear, gifts, jewellery at cheaper rates.
Food Items Witnessed Tremendous Rise
Food items are a necessity and sell irrespective of a person’s economic status. Caught in today’s fast-paced life, people don’t have the time to buy food items. In the past few years, India has seen a revolution in terms of food consumption, with people increasingly buying food items online.
India’s online grocery market reached almost $1 billion (INR 6,500 cr) sales mark in 2017, which clearly shows that consumers find buying food items online relatively easy. Food items grew more than 65% in 2017 as compared to last year.
Beauty & Personal Care Grew By 52%
On the back of the rise in disposable income of the middle class and more people aspiring to look good and do a lot for their health, the beauty & personal care industry grew by 52% last year and 80% of the revenue came from repeat customers.
According to market studies, the Indian market for beauty, cosmetics and grooming is expected to touch $20 billion by 2025 from the current level of $6.5 billion. Interestingly, men who fall in the age group of 18 to 25, spent more money on grooming and personal care products than women in India.
Home Furnishings Saw A Prolific Growth
The online furniture market in India witnessed high-volume growth at 49% over last year. The heavy demand for furnishing products from the urban class has been conducive to the growth of furniture market in India. The growth of infrastructure and real estate market also augmented the demand for furniture and home décor products in India.
Furthermore, the entry of international brands and increasing brand awareness in the recent years also led to this growth.
Online business is growing at an astonishing rate, with online sales now accounting for around one-quarter of the total retail market. Various categories are seeing growth online, as customers continue to shift to ordering products online.
About the Author: This article is contributed by Amazon India Seller Services.