E-shopping likely to see 150pc jump in metros

New Delhi, June 19: e-Commerce shopping volumes are likely to see a 150 per cent growth rate to touch Rs 5,500 crore in 2007-08 from Rs 2,200 crore in 2006-07.

Industry body Assocham in a study finds that e-commerce is gaining immense popularity in metros, especially Delhi and Mumbai.

The number of e-shoppers in Delhi grew more than 30 per cent from 20 per cent last fiscal.

Changing lifestyles and shopping habits turning for convenience along with a large number of people and merchants becoming internet savvy were the primary reasons for pushing up e-commerce transactions by atleast 150 per cent in metros such as Delhi, Mumbai and other cities like Banaglore, Chennai, Kolkata, unveils a Assocham finding.

Mumbai saw the number of e-shoppers increase from 24 per cent with maximum e-shopping taking place in electronic gadgets, apparel and design purchases, railways, air and movie tickets.

The percentage increase for e-shoppers in 2007-08 is expected to touch atleast 40 per cent from Mumbai while it is expected to be beyond 30 per cent in Delhi.

Products that will gain popularity in e-sale could include gems and jewellery, online books sale, accessories, apparel, gift products, music and movies, hotel room besides tickets for transportation, said Assocham President Venugopal N Dhoot.

Other reasons for e-shoppers number multiplying include factors like home delivery which saves time, secondly '24x7' hours shopping with ease and availability factors for product comparisons, added Mr Dhoot.

In other cities like Chennai, seven per cent of its population chose to buy daily routine products through e-commerce in 2006-07, which will go to 11-12 per cent in current fiscal for railway tickets, airline tickets, magazines, home tools, toys, jewellery, beauty products and sporting goods categories, suggests the study.

Likewise, Kolkata's share was seven per cent last year, which might go up by another 3-4 per cent in 2007-08. Online music sales and movies have the highest e-sale in the city.

Similarly, Bangaluru's share is six per cent for books, electronic gadgets, accessories, apparel, gifts, computer peripherals, movies, hotel booking, home appliances, movie tickets, health and fitness products and apparel gift certificates in 2005-06 and is likely to touch the nine per cent mark in 2007-08.

Most products bought and sold off through online comprise books (42 per cent), electronic gadgets (41 per cent), railway tickets (39 per cent), accessories apparel (36 per cent), apparel (36 per cent), gifts (35 per cent) and computer and peripherals (33 per cent). This is followed by airline tickets (29 per cent), music (24 per cent), movies (21 per cent), hotel rooms (20 per cent), magazine (19 per cent), home tools and products (16 per cent), home appliances (16 per cent), toys (16 per cent) and jewellery (15 per cent).

Movie tickets (15 per cent), beauty products (12 per cent), health and fitness products (12 per cent), apparel gift certificates (10 per cent) and sporting goods (7 per cent) also contribute the list.

It is worth noting that 28 per cent of the regular shoppers are in the 18-25 age group, 48 per cent in 26-35, 15 per cent in 36-45 and nine per cent in the age group of 45-60.

The study also found that 88 per cent of online shoppers are male against 12 per cent female. Most of the users of e-commerce services are educated with a Bachelor or Master degree, representing 86 per cent of the audience.

Half of the online shoppers are at an executive level with 26 per cent being professionals or self-employed, indicating an assured spending power, points the study.

The rapid development of e-commerce is forcing companies today to adopt business strategies revolving around the internet.

The report reflects the changing face of business trends in India. Today, the internet population is more than 120 million and is expected to grow by more than 200 million by 2008.

Flight, train, movie, hotel rooms bookings are contributing to the growth, besides direct purchases. Among metros, Mumbai led in all categories, except jewellery, where Delhi came out on top with Kolkata scoring in online music sales.

This business module is cost effective, easily accessible and profitable in many functional areas. Consumers and retailers both desire safe, simple and comprehensive online shopping that will truly realise the range of power of the internet, Mr Dhoot said.

The online system is advantageous to vendors because rapid solicitations can be viewed 24 hours-per-day using a 'one-stop shopping' format that eliminates the need to visit procurement offices. Many local entities also use the system to describe their minority contracting procedures and walk applicants through the certification process.

UNI