Tag: E-commerce

Indian e-commerce market could reach $28 bn by FY2020: Report

09/09/2016 16:28

Indian e-tailing market could reach USD 28 billion by 2019-20, registering a compounded annual growth rate of 45 per cent over the next four years, says a report.

According to domestic brokerage firm Kotak Institutional equities, this growth will largely be driven by an increase in number of buyers and annual average online spend. Other factors like steady increase in household incomes and shift in consumption towards discretionary spends could also boost India’s retail demand.

“We estimate that the Indian e-tail market size could reach $28 billion by FY2020, led by an increase in number of buyers to 110 million (assuming one person per urban household to shop online), and stable annual spends of around $260 per consumer,” Kotak Institutional Equitiessaid in a research note.

According to the report, though the growth of e-tail market in India is often compared to that of China, given the broad similarities in population and mobile internet penetration, in the near-term in India may not mirror China completely due to various economic and other differences between the two countries.

The report noted that the e-commerce sector is expected to see steady growth and is likely to register a 45 per cent annual growth over financial year 2017-2020. While China witnessed a CAGR of 116 per cent during 2009-15.

India’s present internet user base of around 330 million was similar to that of China in 2009, when B2C e-commerce took off. However, the online buyer base in India has remained relatively stagnant over the past 2-3 years, and online buyer penetration at 16 per cent is already lower than that of China in 2009. Though mobiles have led internet penetration in both countries, it is essential to differentiate between the quality of users based on: the quality of handsets and data speeds.

Of the total 330 million internet users in India, only around 142 million have a broadband connection. This is in sharp contrast to China, which has around 86 per cent of its internet users on broadband (defined as 3G/4G networks), the report said, adding that the scenario in India may certainly change as data prices reduce and new broadband services are launched.

As per technology research firm Gartner, Indian smartphone shipments will remain skewed in favour of feature phones, implying that India may well be 5-6 years behind of China in smartphone quality which will eventually determine easier access to online shopping.

Another factor that may impact the Indian e-tail story is the low female participation in the labour force, the report added.

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India`s e-tailing growing fastest in the world: Study

India`s e-tailing growing fastest in the world: Study

09/05/2016 11:45

Being driven by a young demographic profile, increasing internet penetration and relative better economic performance, India’s E-Commerce revenue is expected to jump from USD 30 billion in 2016 to USD 120 billion in 2020, growing at an annual rate of 51 per cent, the highest in the world, according to a joint ASSOCHAM-Forrester study paper.

While in terms of base, India may be lower than China and other giants like Japan, the Indian rate of growth is way ahead of others. Against India’s annual expansion of 51 per cent, China’s e-commerce is growing at 18 per cent, Japan 11per cent and South Korea 10 per cent, according to a joint study.

With annual additions of 25 million internet users, India is ahead of countries like Brazil and Russia even within the BRICS nations. India has an Internet user base of 400 million in 2016 whereas Brazil has 210 million internet users and Russia has 130 million of internet user.

Interestingly, about 75 per cent of online users are between the age group of 15-34 years since India is one of the youngest demographies globally. “This is expected to be a continuing trend in coming years, given the age distribution in India”, said D.S. Rawat, ASSOCHAM Secretary General.

It is not surprising to see the growth among categories focused on younger audiences in the last 12 months, added the paper. The maximum online shoppers are from the 15-24 years of age group, comprising both of males and females.

In India roughly 60-65 per cent of the total e-commerce sales are being generated by mobile devices and tablets Shopping online through smart phones is proving to be a game changer, and industry leaders believe that m-commerce could contribute up to 70 per cent of their e-commerce revenues.

Infibeam to hit markets on March 21; seeks up to Rs 450 cr via IPO

Infibeam to hit markets on March 21; seeks up to Rs 450 cr via IPO

16/03/2016 14:28

Online shopping portal Infibeam Incorporation will hit the capital markets on March 21 to mop-up Rs 450 crore through an initial share plan, becoming the first e-commerce firm to tap the IPO route, said the media report.

The company has fixed the price band at Rs 360-432 per equity share for the IPO.

The initial public offer (IPO) will conclude on March 23, as per the latest update available with capital markets regulator Securities and Exchange Board of India (Sebi). As per Draft Red Herring Prospectus, Gujarat-based Infibeam plans to come out with public issue of equity shares worth up to Rs 450 crore.

Started in 2007, Infibeam runs several e-commerce services like Infibeam.com, BuildaBazaar, Incept and Picsquare. It has proposed to list its shares on the NSE and BSE. The issue is being managed by SBI Capital Markets and Elara Capital India.

Infibeam plans to utilise the IPO proceeds towards setting up of cloud data centre and shifting and setting up of registered and corporate office of the company. Besides, the funds will be used for setting up of 75 logistics centres, purchase of software and for other general corporate purposes.

E-Commerce ind likely to generate 2.5 lakh jobs in 2016

08/02/2016 08:50

E-commerce industry is likely to generate nearly 2.5 lakhs jobs in the online retail in 2016 including temporary employees, supply chain, logistics, ancillary units etc, reveals the ASSOCHAM recent paper. As per the estimates, 2.5 million staff will be required to work within the e-commerce industry by 2016. The paper shows that majority of e-commerce departments and businesses have increased their turnover since last year and present a huge opportunity for the industry to develop further. According to the ASSOCHAM recent paper, nearly 3,50,000 staff working under e-commerce industry and are looking to bring in new staff over next 12 months. Increasing smartphone ownership and investment from retailers are fuelling the rapid growth of m-commerce in India. Releasing the ASSOCHAM paper, D S Rawat, Secretary General ASSOCHAM said, the popularity of smartphones and other emerging channels increase with consumers, more retailers are beginning to merge and combine multiple departments and operations for all of their customers. “The hiring activities are expected to grow by over 60-65 per cent in this sector and may help create between 5-8 lakh employment opportunities in two to three years,” he added. The paper further suggests that a considerable amount of staff also work in areas supporting the e-commerce industry, including distribution and delivery, customer support and website development. While M-commerce currently represents only 20-25 percent of the India‚Äôs e-commerce market, this share is expected to grow as businesses, including those operating in the online to offline space such as taxis and restaurants, look to seize greater market share. It is also likely to be further accelerated by advancements in mobile technology and improvements in security and connectivity of shopping and payment platforms. The paper says that India’s e-commerce market was worth about USD 3.8 billion in 2009, it went up to USD 17 billion in 2014 and to USD 23 billion in 2015 and is expected to touch whopping USD 38 billion mark by 2016.