Smartphone becomes the preferred medium for shopping in India : Study

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Online purchases made through mobile phones are steadily increasing in India and are likely to touch 40 million in 2016 from the current level of 30 million, reveals an ASSOCHAM-Grant Thornton joint study.

An additional 200 million Indians will access the internet in the next three years, with majority of them coming online through smartphones, according to the report.

The number of smartphone users in India is projected to exceed 200 million, ranking next to the US as the world’s second largest smartphone market by 2016 due to increasing penetration of affordable smart mobile devices in the country.

With the growing number of smartphone users and major E-commerce players, number of users relying on app-based platforms will eventually increase in the near future, noted the joint study.

Notably, major e-commerce player like Flipkart is already planning to go app-only in few months. In May this year, Flipkart-owned online fashion store, Myntra went app-only and said that 95 percent of Internet traffic comes through mobile and 70 percent sales are generated through smartphones.

“India is gradually transitioning from a mobile first to a mobile only country. At Flipkart, we have been following a mobile first approach and 70-75% of our total traffic is already coming from our mobile app. We are constantly experimenting with various aspects of our service to create the best shopping experience for our users on our app. Meanwhile, we continue to offer both desktop as well as mobile option for our customers,” Flipkart said in a statement.

A significantly low (19%) but fast-growing internet population of 243 million in 2014 is an indicator of the sector’s huge growth potential in India. This indicates the potential of internet use in India and as internet penetration increases, the potential of growth of the E-Commerce industry will also increase.

The study also notes that the number of users making online transactions has also grown exponentially, and it is expected to increase from 11 million in 2011 to 38 million in 2015. Around 75% of Indian internet users are in the age group of 15 to 34 years. This category shops more than the remaining population.

The Indian e-commerce market is estimated to grow at a Compounded Annual Growth Rate (CAGR) of 63% to reach USD 8.5 billion in CY 2016. Growth in the penetration levels of mobile and internet and increased consumer demand will drive this growth.

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