E -Tailing in India - a Critical Insight From S P Jain Global

Research at S P Jain reveal India has an internet user base of about 375 million (30% of population) as of Q2 of 2015. Despite being the second largest user base in world, only behind China (650 million, 48% of population), the penetration of e-commerce is low compared to markets like the United States (266 M, 84%), or France (54 M, 81%), but is growing at an unprecedented rate, adding around 6 million new entrants every month. The industry consensus is that growth is at an inflection point.

S P Jain School of Global Management

Key drivers in Indian e-commerce are:

4 out of 10 shopper worldwide use cell phone to do shopping

Dr Raja Roy Choudhury, Director (Professional Programs - Digital Marketing & Retail Management)

  • Large percentage of population subscribed to broadband Internet, burgeoning 3G internet users, and a recent introduction of 4G across the country
  • Explosive growth of Smartphone users, soon to be world’s second largest smartphone user base
  • Rising standards of living as result of fast decline in poverty rate
  • Availability of much wider product range (including long tail and Direct Imports) compared to what is available at brick and mortar retailers
  • Competitive prices compared to brick and mortar retail driven by disintermediation and reduced inventory and real estate costs
  • Increased usage of online classified sites, with more consumer buying and selling second-hand goods
  • Evolution of Million-Dollar startups like Jabong.com, Saavn, Makemytrip, Bookmyshow, Zomato etc.

India’s retail market is estimated at $470 billion in 2011 and is expected to grow to$675 Bn by 2016 and $850 Bn by 2020Consumer electronics, online travel, apparel and accessories are the market segments exhibiting promising growth. For more details please click https://digimblog.wordpress.com/2016/05/19/e-tailing-in-india/

Source: S P Jain School of Global Management


Categories: e-Commerce, Emerging Businesses, Education

Tags: B2B, B2C, digital marketing, e commerce, etailing, internet commerce, m commerce, retailing

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S P Jain School of Global Management is an Australian B School having campuses in Sydney, Singapore, Dubai & Mumbai and is rated by Forbes amongst the top 10 b schools in the world offering global management education.

Mitesh Sharma
Project Manager, S P Jain School of Global Management
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