Indian Ecommerce Fastest Growing Market In The World; To Cross $120B By 2020: ASSOCHAM
Associated Chambers of Commerce and Industry of India (Assocham) and Forrester has conducted a joint study of Indian ecommerce market; and there are lots of positive news for Indian entrepreneurs.
Right now, Indian ecommerce is fastest growing sector in the whole world, as we have beaten China, Japan and South Korea in percentage of growth. With a whooping 51% annual growth, Indian ecommerce is way ahead of China, which is growing at a rate of 18%; Japan which is experiencing growth of 11% and South Korea where ecommerce is witnessing only 10% annual growth.
As per the report, Indian ecommerce sector will cross $120 billion or Rs 8 lakh crore by 2020. Right now, Assocham has declared Indian ecommerce market to to worth $30 billion or Rs 2 lakh crore. Hence, within a span of 4 years, Indian ecommerce is expected to become 4 times.
The report also mentions that in terms of new users added per year, India is ahead of other BRICS nation. India has right now 400 million Internet users, and 25 million new users are added every year. Comparably, Brazil has 210 million users, and Russia has 130 million users of Internet.
This is a huge boost to the industry, which had started doubting their own super-stars and the market growth after two ‘Made in India’ Unicorns faced devaluation. In February, Morgan Stanley devalued Flipkart to $11 billion from $15 billion; and this week, the industry was shocked when HSBC devalued Zomato by 50%.
After Indian Govt. altered the FDI policy, and curtailed heavy discounts to acquire customers, the industry was worried and tensed on the future of ecommerce in India. But as per Assocham, Internet industry is not only growing fast, but also growing in all directions surpassing all expectations.
Some other interesting facts from the report:
– Mobiles and Tablets declared as ‘game changer’ as currently, 60-65% of all ecommerce transactions are happening on mobile
– By 2020, this percentage may expand to 70%
– Retail category under ecommerce is attracting 65 million users (unique) a month; this niche is growing at a healthy rate of 55% annually
– Within retail, apparel is the fastest growing niche as 24% of all Internet users visit apparel centric sites every month
– Branded apparel, accessories, jewellery, gifts, footwear are the ‘major hits’ for online shoppers, and these products are increasingly being shopped using mobile apps
– 75% of all Internet users in India are between the age group 15-34, making India as one of the youngest demographics in the whole world
Here is the official press release from Assocham regarding their joint study with Forrester.