B2C E-Commerce in India still shows Growth Potential
The recent ""India B2C E-Commerce Report 2013"" by Hamburg-based secondary market research company yStats.com contains information about online retail in India. It covers important trends, revenues, the share of B2C E-Commerce on total retail sales, successful product categories, Internet users and Internet shoppers, as well as information about leading players in B2C E-Commerce in India.
The number of Internet users in India was forecasted to grow to exceed 140 million by the end of 2012, representing more than 10 percent of the population. Additionally, an increase in mobile Internet users in India by approximately 25 percent annually between 2012 and 2015 was expected.
Less than 1 Percent of all Retail Sales in India are generated online
Online sales accounted for less than 1 percent of all retail sales in India in 2012, even though a large number of diverse online retailers exist. Travel represents the largest share of Indian B2C E-Commerce, as it cannot be touched or tried on, which is very important to consumers in India and represents an obstacle to many products that are sold online. In relation to this, online shoppers in India mainly planned to purchase from the categories mobile phones (including accessories), computer and game software, entertainment tickets, books/newspapers/magazines as well as travel reservations in 2012.
Mass Merchants and Online-Travel-Providers especially popular among Internet Users in India
In 2012, online mass merchants Flipkart and Snapdeal, as well as online clothing retailer Jabong, had the highest number of unique visitors. Regarding the reach of online-travel-providers in India, Indian Railways was leading in July 2012. The website reached nearly a fifth of all Internet users in India, much more than the trailing competitors MakeMyTrip, Yatra Online, and Jet Airways.
Despite continuous growth, B2C E-Commerce represents less than 1 percent of total retail sales in India, as illustrated in the “India B2C E-Commerce Report 2013” by yStats.com. The product category clothing and accessories has especially high potential, because it is only rarely ordered online, due to the impossibility of trying the products in advance.