Indian e-commerce market is growing rapidly, and mobile is playing a role in that growth
India has become the fastest growing e-commerce market in the Asia Pacific region, according to a new study from Gartner. The country has been seeing explosive growth in its digital commerce space, with a vast number of retailers and startups beginning to focus themselves on the digital world and engage mobile consumers more effectively. Mobile commerce has contributed to this growth in e-commerce, making India home to one of the most active mobile markets in the world.
Digital commerce market expected to reach $6 billion in revenue by 2015
According to the study, India’s e-commerce market is expected to reach $6 billion by 2015, experiencing a 70% increase over digital revenue this year. While digital commerce is still considered to be in a nascent stage in India, the country’s market is booming, much more so than its neighbors in the Asia Pacific region. Currently, e-commerce represents approximately 4% of the country’s total retail market, but this is expected to change in the coming years.
Smartphone penetration is growing and the demand for mobile shopping services is on the rise
A growing number of retailers are showing interest in mobile commerce. The number of people with smartphones in India is growing and they are beginning to favor shopping online over visiting physical stores. In order to connect with these consumers, retailers need to have a prominent presence in the digital world, which means that they are beginning to invest more heavily in the e-commerce space. Numerous startups have emerged to assist these retailers, offering mobile-centric services that are focused on e-commerce.
Digital commerce market is beginning to mature
As the digital commerce market matures, better services are expected to emerge. Retailers are still working to understand the demands that mobile consumers have, and as this understanding grows they will be able to offer better platforms and shopping experiences. Many mobile commerce organizations are beginning to break into the Indian market in order to take advantage of the growth of e-commerce, and they are bringing their popular platforms with them as well.
BWild |
February 10, 2014
Retail environment of India is beginning to evolve
India’s retail climate is beginning to change. In the past, a common saying among consumers has been “can’t touch, won’t buy,” but the advent of mobile technology is beginning to change the way people feel about purchasing products. As Internet access becomes more common throughout the country, many Indian consumers are beginning to turn to e-commerce for everything they need. As more people get their hands of smartphones and tablets, they are beginning to purchase products using these devices, hence a growing focus in the retail sector on mobile commerce.
E-commerce is experiencing strong growth as consumers become more mobile
India’s e-commerce business grew by 80% in 2013, according to Flipkart, one of the country’s leading e-commerce firms. The company notes that this is the most significant growth e-ecommerce has seen in the country in the past several years. The momentum behind e-commerce is expected to remain strong for the foreseeable future. Notably, many consumers are beginning to purchase products from online retailers with their mobile devices rather than with home computers.
Retailers are focusing more heavily on mobile commerce
Flipkart suggests that consumer mentality is beginning to shift at a rapid pace. People are beginning to feel that mobile commerce represents a more convenient form of shopping. Consumers are not making the move toward mobile shopping on their own of course, as retailers are also beginning to focus more heavily on the mobile crowd. India’s e-commerce market is currently valued at approximately $13 billion and retailers are beginning to see a great deal of potential in the mobile space when it comes to the future of e-commerce.
E-commerce market expected to hit $70 billion by 2020
The e-commerce market in India is expected to reach $70 billion by 2020 as more retailers begin focusing on mobile commerce. Consumers are quickly becoming convinced that mobile payments will have a major role to play in the future of their shopping. It may be some time before mobile becomes the most favored shopping platform in India, however, as many people are likely to remain supportive of traditional, physical stores.
