Mumbai: India’s e-commerce industry is forecasted to grow at a CAGR of over 36 per cent during 2015 – 2020, on account of expanding smartphone user base, huge discounts and offers extended to customers by the e-commerce firms, increasing per capita disposable income and growing youth population.
According to a new study conducted by Canada based TechSci Research, the rising number of high speed internet users is encouraging businesses to innovate and offer a diversified array of products and services online.
Over the last few years, the research agency noted that with significant improvements in the payment structure in e-commerce market, consumers in India are gradually shifting towards online space and are shedding their belief of online shopping medium being unsafe.
Consumer electronics, online travel and apparel and accessories are the market segments exhibiting promising growth. With the option of same day delivery, online groceries stores are also entering into the country’s online space. “India’s workforce majorly comprises of young consumers who have less time for going out and shopping at regular brick and mortar stores. Such a scenario creates humongous potential for online shopping in a market as huge as India. Moreover, great offers and discounts by the leading e-commerce players further increase consumer interest towards the products.” said Mr. Karan Chechi, research director, TechSci Research.
In light of the increasing popularity of online sales platform, Khaitan & Co, a leading law firm in India observed that the brick and mortar retailers have started exploring web portals as an additional channel for sales and consumer reach. “Brick and mortar will increasingly focus on increasing customer shopping experience through innovative uses of big data analytics and by integrating hospitality, fine dining and entertainment. Leading players will also focus on omni-channel retailing, thereby combining the advantages of existing logistics and back-end infrastructure and long-term cost advantages of online retail,” it said.
The law firm believes that the battle between e-commerce and brick and mortar will further intensify outside the market. According to it, the brick and mortar is likely to push for scrutiny of FDI in e-tail, competition law scrutiny on predatory pricing funded by venture capital, and attempt to organise boycotts of vendors listing on or supplying to e-commerce platforms.
