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India's e-Commerce sector to Hit $15 Billion by 2016
Nov 25, 2014

According to a report recently released by Google, India’s e-commerce market is likely to have a whopping 100-million customer base, with women being the major contributors, and would be valued at $15 billion by 2016. Online search giant Google, in association with Forrester Consulting, released their latest report on online shopping trends, indicating the figures for India.

From a customer base of mere eight million in 2012, it has climbed to 35 million in 2014, and that by 2016 India’s customer base will be 100 million—a phenomenal growth of over 12 times in just four years. The current valuation of the market, which stands at about $3 billion for e-commerce now, is also set to shoot up to $15 billion by 2016.

Following browsing trends, which have broadly shifted from the desktop to mobile devices in India, online shopping is also expected to follow suit, as one out of three customers currently makes transactions through mobiles in Tier-1 and Tier-2 cities. The number in Tier-3 cities is even higher, with every with every second person shopping online through their mobile. In 2014, 50 per cent of shopping queries were made through mobile devices, compared to 24 per cent in 2012.

Identifying the gender contribution to the shopping debate, the report states that women would be the most significant contributors to this growth comprising almost 40 percent of the projected customer base. Although men account for the majority of the customer base as of now, in Tier-1 cities, women spend almost double the amount men spend on online retail. In terms of frequency as well, women outnumber men, shopping more number of times.

The highest growth rate was seen in the apparel segment—almost 64 percent over last year, followed by baby care products at 53 percent, beauty and personal products at 52 percent and home furnishings at 49 percent. Compared to this, the currently dominant segment of electronics has seen the least growth of just about 35 percent over last year.


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