New Delhi: With an increase in disposable income and per capita income in India, average annual spending on online shopping is expected to rise 67 per cent to Rs 10,000 next year, according to a research by Assocham-PwC.
As per the study, at present online shoppers spend around Rs 6,000 a year on average.
With better infrastructure in terms of logistics, broadband and internet-ready devices, the current online spending of about 40 million is expected to further increase by 65 million by 2015.
According to the study, the overall e-commerce industry is valued at USD 17 billion. It has been growing at a compounded annual growth rate of about 35 per cent each year, and is expected to cross the USD 100 billion mark in five years.
In 2014, the sector attracted the attention of investors, including top global firms and leading Indian industry leaders like Azim Premji and Ratan Tata, said the study. It further added that brands like Flipkart and Snapdeal are enjoying edge over global players like Amazon in the country.
Apparel sales on online marketplace continue to capture a greater share of ecommerce retail. This segment along with the computer and consumer electronics sector, fuelling the overall market growth.
Expressing his views on the study, Assocham Secretary General D S Rawat said: "The smartphone and tablet shoppers will be strong growth drivers. Mobile phones already account for 11 per cent of ecommerce sales, and their share will jump to 25 per cent by 2017."
"In 2015, Mobile commerce will become more important as most of the companies are shifting to m-commerce,'' adds Rawat.
Computer and consumer electronics, as well as apparel and accessories, account for the bulk of India retail ecommerce sales, will contribute 42% of total retail ecommerce sales in 2015 from the current level of 39%, further highlighted the study.
On the other hand some factors that will contribute to the growth of e-commerce include aggressive merchandising and discounting from flash sales and daily deals, more online loyalty programmes and increasing popularity of smartphones and tablet computers among consumers.
The study also emphasizes that the industry is expected to spend an additional USD 500 million to USD 1 billion on logistics functions, leading to a cumulative spend of USD 950 million to USD 1.9 billion till 2017-20.
Presently , around 25,000 people are employed in online-retailing warehousing and logistics. It is estimated that there will be an additional employment of close to 1,00,000 people in these two functions alone by 2017-20, as per the report.
Photo Courtesy: www.corbisimages.com