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Ecommerce

Retailer Association India, BCG: ecommerce to see USD 55 bln growth by 2021

Thursday 16 February 2017 | 12:23 PM CET

The new report issued by Retailers Association of India and Boston Consulting Group has found that ecommerce market is expected to be at USD 50-55 billion by 2021 from the current USD 6-8 billion.

Maximum ecommerce penetration would be in consumer electronics, apparel, homeware and furniture, luxury, health, FMCG, food and grocery.

By 2025, consumer electronics would see maximum penetration of ecommerce between 38-42% compared to 13-15% currently, while food and grocery could see the least growth with 1-3% of ecommerce penetration from under 1% currently.

Digital buying has increased from 3% in 2013 to 23% in 2016. The overall digital influence on consumers has increased from 9% to 30% during the same period.

The report notes that convenience has overtaken discounts as a key driver for buying online. From 40% in 2014, the report notes that more than 55% purchase online due to convenience. The digital purchasing has been catalysed by progress in infrastructure, including falling smartphone prices, reducing data charges, and rising smartphone penetration.

Smartphone penetration has increased from 3% to 30% since 2011 and the prices fell by up to 50% between 2011 and 2015. The report also noted that digital adoption by a user base over 35 years of age is much higher in the past two years alone.

Ecommerce adoption has increased 3.8 times from 4% to 15% in the over-35 age group between 2014 and 2016. Similarly, social media adoption has increased 2.9 times from 8% to 23% in the same time period.

The report further noted that in order for companies to take advantage of the current digital wave, they will have to digitise their core business, to unlock significant value. Besides, consumer engagement, integrating all the channels of sale from website and mobile to in-store, and collaborating with marketplaces is key.

More: Link
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