As the leading distributor of market intelligence, MarketResearch.com is pleased to announce the distribution of a report by Research Capsule, forecasting the e-commerce market in India to reach $51 billion by 2017, growing at a CAGR (compound annual growth rate) of 43% during 2012-2017.
According to Research Capsule's report, the e-commerce market in India is currently only at 1% of the market in China or the U.S.A. and a small slice of the country's total retail sales of approx. $400 billion. The market is just getting warmed up with big online brands establishing themselves. With the Alibaba IPO, eyes are now turning to India for the next hot e-commerce name to come out of Asia.
Though direct comparisons to Alibaba could be misleading, there are several Indian e-commerce companies which are growing rapidly. These companies are changing the market and challenging both established local retailers and Western companies to gain a foothold in India.
Up until recently, internet-based purchases in India were primarily travel-related with consumers ordering train and plane tickets online. Physical goods were not ordered online, but during the past year, e-commerce companies selling electronics, clothes, and household items have surged in popularity and consumers are comfortable purchasing such items online. Flipkart, Snapdeal, and Infibeam are companies that have grown rapidly and gained a fan base in a short period of time.
The Indian e-commerce market is different in many ways than markets in China or the U.S. A. For example, paying cash or credit upon delivery is a common practice in India, meaning consumers can evaluate the goods before paying. Online retailers in India also must think mobile first as fixed-line internet connectivity is still extremely low and slow in the country.
The Research Capsule report forecasts the e-commerce market in India to 2017, with historical sales from 2012. It also provides information on key enablers for e-commerce including mobile bank accounts, mobile subscriptions, internet users, and smartphone growth rates. Companies examined include Flipkart, Snapdeal, Infibeam, Walmart India, and Amazon India. The report provides online revenues for the travel and non-travel segments with recommendations for e-commerce companies, venture capitalists, and other players. The report is authored by analysts with prior experience at a Fortune 50 company and a major market research firm.
