Only 14% of India’s internet population currently shop online. However, Indian online retail spending is expected to grow at a CAGR of more than 50% in the next five years.
The number of Indian online buyers is expected to grow to 128 million by 2018. There will be headroom to grow on both the demand and supply sides, says a report by Forrester.
Mobile only internet users will increase the penetration of internet in the country, thereby giving a boost to online buyers.
Growth Opportunities for Online Retailers
92% of India’s overall retail industry is still unorganised retail. Under-penetration of online retail in Tier II and III cities imply room for growth into these areas
An underserved consumer base and extremely ambitious supply side will see India’s online retail spend reach $16 billion by 2018.
20-30% of all Indian online retail web visits were attributed to the mobile phone. Mobile commerce accounted for 10-15% of online retail transactions. This is expected to be a key growth driver. online retailer transactions.
A recent report by Assocham had put the online shopping figure at $16 billion, and estimated it to reach $56 billion by 2023. They also observed that Indian online retail saw a 85% rise over the previous year.
Management consulting firm Technopak forecast the Indian online retail market to hit $17 billion by 2020.
The Indian industry body and research firm seem to maintain a more bullish view of the market than independent research body Forrester. Mobile commerce was also not given importance by the former.