Wednesday, April 8, 2015

Online retail revenue to match income from online travel by 2016

Online retail revenue to match income from online travel by 2016
Mobiles and mobile phone accessories contributed 41%, or about Rs.9,936 crore, to the overall e-tailing pie, followed by apparel, footwear and personal items, which contributed 20%, or Rs.4,699 crore. Photo:New Delhi: The digital commerce MARKET  in India is expected to touchRs.1.08 trillion by 2015-end, a 33% increase over a year ago, according to the 2014 Digital Commerce report by the Internet and Mobile Association of India (Iamai) and IMRB International, a MARKET research firm.
The market grew 53% year-on-year (y-o-y) to Rs.81,525 crore by December end, the report said.
According to the report, about 61% of the entire digital commerce market in 2014 comprised online travel, while 29% came from e-tailing.
Online selling, or e-tailing, grew around 1.4 times over 2013. “Online travel in India, over the years, has been the largest digital commerce segment in terms of revenue generation. However, online retail is catching up fast and is expected to match online travel in revenue by 2016,” according to the report.
“Given that retail is a much larger segment, it is natural that online retail will eventually catch up with online travel,” said Dhruv Shringi, co-founder and chief executive of Yatra, an online travel firm.
However, he believes the penetration levels for online travel will remain high because the sector is more service-oriented and is a friction-less product, when compared with selling products online.
According to Shringi, the online travel industry is growing at 35-40% y-o-y.
Mobiles and mobile phone accessories contributed 41%, or about Rs.9,936 crore, to the overall e-tailing pie, followed by apparel, footwear and personal items, which contributed 20%, or Rs.4,699 crore.
“The penetration of e-commerce is growing rapidly. Of the total smartphones sold, 8-9% of sales are already happening online,” saidRadhika Aggarwal, co-founder of Shopclues.com, an online marketplace.
Consumer durables, along with kitchen appliances, contributed 14% orRs.3,404 crore. The remaining Rs.2,780 crore came from personal computers, including laptops, net books, tablets and close to Rs.1,059 crore from home furnishings. Books contributed about Rs.648 crore in 2014, according to the report.
The report also says 45% of online shoppers prefer cash on delivery as a mode of payment while 21% opted for debit cards and another 16% CREDIT CARDS. The other modes of payment include net banking and prepaid cash cards, mobile wallets, etc.
The FINANCIAL services MARKETgrew at a compounded annual growth rate of 20% since 2010, the report stated. In December 2014, this market was valued at Rs.4,508 crore. The classifieds market was valued atRs.896 crore by the end of calendar year 2014.
Other online services which include online entertainment ticketing, online commuting, food and grocery delivery, registered a compounded annual growth of 73% since 2010 and were valued at Rs.2,025 crore by December 2014.
There are 232 million Internet users—who go online at least once a month—in India, according to the Mobile Internet in India 2014 report released in January.
Out of these, about 66.7 million Internet users have actually transacted or bought products and services over the Internet.

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