With the rise of digital natives, better logistics, broadband and Internet-ready devices, the number of consumers shopping online is going to cross 100 million this year from 69 million in 2016, a joint study said here on Monday.
“In 2016, about 69 million consumers purchased online and the number is expected to cross 100 million by 2017 with the rise of digital natives, better infrastructure in terms of logistics, broadband and Internet-ready devices to fuel the demand in e-commerce,” according to an Assocham-Resurgent India study.
As per the findings of the joint study, Bengaluru has left behind all other cities in India shopping online in the year 2016. While Mumbai ranks second, Delhi ranks third in their preference for online shopping.
The joint study revealed that Indian e-retail looks even more promising which is up from US $3.59 billion in 2013 to US $5.30 billion in 2014 (an increase of 48 per cent), by the end of 2018, it is expected to touch US $17.52 billion (with growth of 65 per cent).
In 2017, mobile commerce will become more important as most of the companies are shifting to m-commerce. Mobile already accounts for 30-35 per cent of e-commerce sales, and its share will jump to 45-50 per cent by 2017,” added the report.
“There is a surge in the number of people shopping on mobile across India with Tier II and III cities displaying increased dominance. In fact, 50 per cent of our traffic is coming from mobile and a majority of them are first time customers,” the study added.
The year 2017 will see large scale growth in the Indian e-commerce 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 e-commerce marketplace model, the study said.
The joint study said the total retail sales in India will likely increase from the US $717.73 billion during 2014 to touch US $1,244.58 billion by 2018. The total retail sales is growing at an impressive rate of 15 per cent, registering a double digit growth figure year after year.