Demonetisation and a reduction in cash transactions, along with improvement of net banking facilities, can be opportunities for the Indian ecommerce sector, according to stats made public by an ASSOCHAM-Resurgent India study, Indiatimes.com reports.
In 2016, about 69 million consumers purchased online, which is expected to cross 100 million by 2017 with the rise of digital natives, better infrastructure in terms of logistics, broadband and Internet-ready devices to fuel the demand in ecommerce.
By the end of 2018, Indian e-retail is expected to touch USD 17.52 billion. Mobile commerce is likely to jump to 45-50% in 2017 against the current 30-35% of ecommerce sales. The study added that 50% sales come from mobile with majority being first time users. It also observes a surge in the number of people shopping on mobile across India with tier II and III cities displaying increased dominance.
Bangalore saw the highest preference for online shopping in 2016, followed by Mumbai and Delhi. In other cities like Bangalore, 69% of its population chose to buy daily routine products through e-shopping in 2015-16, which will go to 75% this year for apparel, gift articles, magazines, home tools, toys, jewellery, beauty products & sporting goods categories.
In Mumbai, 65% of population chose purchasing daily products online in 2016, which might go up another 70% in this year for electronic gadgets, accessories, apparel, gifts, computer peripherals, movies, hotel booking, etc., whereas, in Delhi, 61% of its population chose to buy daily routine products through e-shopping in 2015-16, which will go to 65-68% by the end of 2017.
The report also laid out challenges for ecommerce in India including absence of ecommerce laws, low entry barriers leading to reduced competitive advantages, rapidly changing business models, urban phenomenon, shortage of manpower and customer loyalty.
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