Indian e-commerce market to reach USD 20 bn next year: Report

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Flipkart
New Delhi, Nov 9: The e-commerce market in the country is expected to grow 37 per cent to reach USD 20 billion by next year on the back of growing internet population and increased online shoppers, a report has said.

"E-commerce in India is a USD 11 billion market, and is estimated to reach USD 20 billion by 2015, growing at a CAGR of 37 per cent over 2013-15," Motilal Oswal Securities said in its report on e-commerce.

The research firm said their are multiple enablers for this growth which include increase in the number of internet users and an increased proportion of online shoppers within those users, growth in the per-shopper transaction value and continued flow of capital by willing investors.

The report said currently online travel dominates the e-commerce market but in the future, e-tailing will drive the growth. Online travel constituted 71 per cent of the e-commerce market in India, followed by e-tailing (16 per cent). Travel has grown at a CAGR of 32 per cent over 2009-13.

"However, going forward, e-tailing will be the biggest growth driver, with expected CAGR of over 60 per cent to USD 7 billion in 2016 from USD 1.7 billion in 2013. Within e-tailing, fashion is likely to be the driving segment," it said.

Fashion was USD 559 million in 2013, and estimates peg the growth in fashion e-tailing to anywhere between USD 3 billion and USD 6 billion by 2016. The research firm said heavy discount on online sales is a direct reflection of the industry's competitive intensity.

"The amount of money raised by Flipkart, lately Snapdeal, and that committed by Amazon is all yet to be invested, indicating that we may not be anywhere near the end of round-the-clock discount seasons at online stores," it added.

PTI

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