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.
Mumbai, India, July 31, 2016 (Newswire.com) - Key drivers in Indian e-commerce are:
- 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 2020. Consumer 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