3 years ago on
Digital Commerce Market in India to Exceed Rs 1 Lakh Crore This Year: Study
New Delhi: Digital commerce market in India is expected to cross Rs 1 lakh crore this year. Growing preference towards online shopping helps digital commerce market to a great extent. According to a recent report, in the year 2014 digital commerce market in India had grown 53 per cent to Rs 81,525 crore.
A joint report by IAMAI and IMRB International added that by the end of 2015, this is expected to raise further by 33 percent and cross Rs one lakh crore.
Digital commerce market saw a steady growth from 2010 to 2013. Rs 26,263 crore in 2010 raised to Rs 47,349 crore in 2012 and to Rs 53,301 crore in 2013. Over 61 per cent that is Rs 50,050 crore of the total market was accounted to online travel. E-tailing segment saw growth by 29.4 per cent.
"Significantly, e-tailing has grown by around 1.4 times over 2013 and constitute nearly 29 per cent of the overall share," the report said.
In the year 2014, E-tailing segment was dominated by mobiles and mobile phone accessories (41 per cent or Rs 9,936 crore) in sales. It is followed by apparels, footwear and personal items (20 per cent or Rs 4,699 crore) in 2014. The report confirmed that consumer durables and kitchen appliances added another 14 per cent or Rs 3,404 crore.
Digital consumer devices like laptops and tablets contributed Rs 2,780 crore. Home furnishing and books contributed Rs 1,059 crore and Rs 648 crore. The report confirmed that 45 percent customers, who shopped online preferred cash on delivery as the mode of payment. 21 per cent said that they preferred debit card payment, 16 percent credit card, 10 per cent Internet Banking and 8 percent through other modes like prepaid cash cards and mobile wallets.
The report said that in 2014, segments like financial services, matrimony and classifieds grew at 5.5 per cent and one per cent.
"The financial services market has grown at a CAGR of 20 per cent since 2010. This market was valued at Rs 4,508 crore. On the other hand, the classifieds market has seen significant growth and is valued at Rs 896 crore by December 2014," the report said.
Since 2010 with a CAGR of 73 per cent other market services had grown and by 2014 it was valued at Rs 2,025 crore. Service categories like online entertainment ticketing, online commuting, online food and grocery deliver belongs to this segment.
Last year, maximum growth in emerging service marketing was witnessed by online food delivery market (40 per cent). By the end of 2014 online food delivery market will be valued Rs 350 crore.