India Business Report: e-commerce industry to touch 9210 crore, online classifieds: 820, online travel: 7000 crores!

The ecommerce industry in India is all set to touch Rs. 9210 crore by the end of FY08. (30% jump from Rs 7,080 crore in ’07). Here is the division,…

The ecommerce industry in India is all set to touch Rs. 9210 crore by the end of FY08. (30% jump from Rs 7,080 crore in ’07).
Here is the division, as per the survey conducted by the IAMAI and IMRB.

  • Online Travel Industry: expected growth rate of 30% to Rs 7,000 crore by end FY08 (from 5500 crores in ’07) (Get the list of OTAs here)
  • Online Classifieds: expected to reach Rs 820 crore by end FY08
  • eTailing (i.e. online retailing/auction): expected to be a Rs 1,105 crore industry by end FY08 (from Rs 850 crore in FY07. (A few interesting eTailers here)
  • Digital downloads (i.e. downloading from Internet to mobiles using wap phones or web) and paid content (research/exclusive videos/articles etc) accounted for the rest of 285 crores.

Few interesting excerpts from the report:

  • Out of the 13.2 million internet users across 26 cities covered in IMRB’s earlier research of 2006, 14.2% use the Internet to buy travel tickets; 5.5% people do online shopping especially products like Books, Flowers, Gifts etc. and 5% people deal in stocks and shares through the internet.
  • It has been observed that most of the Online Shoppers start their e-Shopping journey with buying Air/ Railway Tickets. This might be because the service provided in case of Travel, especially Ticketing is undifferentiated with the place of buying the tickets. The buyer is ensured that he would get the same service as his co-passenger who has bought his tickets from the physical counters.
  • Size of Online classifieds industry stands at Rs. 820 crores (Online Matrimony Segment = 140, Online Jobs Segment = 600, Other segments: property, automobile, etc = 80 crores).
  • Size of Digital Download Industry is Rs. 255 crores (50% jump from last year)


The major triggers of e-commerce in India were:

  • Saves time and efforts
  • Convenience of shopping at home
  • Wide variety / range of products are available
  • Good discounts / lower prices
  • Get detailed information of the product
  • You can compare various models / brands

And some of the major barriers at present were:

  • Not sure of product quality
  • Cannot bargain/Negotiate
  • Not sure of security of transactions / Credit card misuse
  • Need to touch and feel the product
  • Significant discounts are not there
  • Have to wait for delivery

Download the report here.

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