The total retail sales in India is likely to increase from $717.73 billion during CY 2014 to touch $1,244.58 billion by 2018 growing at a rate of about 15% and registering a double-digit growth number year-on-year, according to the latest study by Assocham-Resurgent India.
In 2017, about 100 million consumers purchased online and the number is expected to cross 120 million by 2020 with the rise of digital natives, better infrastructure in terms of logistics, broadband and Internet-ready devices to fuel the demand in ecommerce.
According to the joint study, Bengaluru has left behind all other cities in India as far as online shopping is concerned in 2017. While Mumbai ranks second, Delhi ranks third in their preference for online shopping, the study noted.
In Bengaluru, people are choosing to buy daily routine products through online shopping which will go to 75% this year for apparel, gift articles, magazines, home tools, toys, jewellery, beauty products & sporting goods categories.
Mumbai share was 68% in the last year, which might go up another 72% this year for electronic gadgets, accessories, apparel, gifts, computer peripherals, movies, hotel booking, home appliances, movie tickets, health & fitness products and apparel gift certificates etc. Whereas in Delhi, 65% of its population chose to buy daily routine products through online shopping in 2017-18, which will go to 68% by the year-end.
In 2018, mobile commerce will become more important as most of the companies are shifting to m-commerce. Mobile already accounts for 30-35% of ecommerce sales, and its share will jump to 50% by 2020, adds the report.
Ecommerce is big business and getting bigger every day. Online shopping has been embraced by Indians with close to 25-30 million adults making a purchase via the internet in the last year. The study said that online shoppers and buyers starting with a base age of 18 are become more involved with ecommerce in their early teens.
There is a surge in the number of people shopping on mobiles across India with tier II and III cities displaying increased dominance. In fact, 50% of the traffic is coming from mobile and a majority of them are first-time customers.
The year 2018 will see largescale growth in the Indian ecommerce sector with increased participation from people across the country. This industry will continue to drive more employment opportunities and contribute towards creating more entrepreneurs through the ecommerce marketplace model, noted the study.
Having in its fold over 400 Chambers and Trade Associations, and serving over 4.5 lakh members across India, Assocham has emerged as the fountainhead of knowledge for Indian industry.