Online Shopping In India : Bangalore Takes The Cake!
2016 proved to be a great year for online shopping for India. The way it has evolved since the years from it inception, it has only grown for a better future. The last has also saw an immense rise in online transactions which is expected to rise even more in the future. According to an ASSOCHAM-Resurgent India study. 2016 boasts of a year when about 69 million consumers purchased online and this number is expected to cross 100 million by 2017 with the rise of digital natives, better infrastructure, logistics and Internet-ready devices to fuel the demand in e-Commerce.
The phenomenal growth of the e-Commerce sector is accompanied by certain challenges like absence of e-Commerce laws, low entry barriers leading to reduced competitive advantages, rapidly changing business models, urban phenomenon, shortage of manpower and customer loyalty. However, there are a number of opportunities for too - reduction of money transactions in all sectors, improvement of Net banking facilities across the country, implementation of demonetization policy, government policies on banking and financial sectors.
The study reveals, Indian e-Retail looks even more promising by the end of 2018. The e-retail sale continues to register an unprecedented growth and increase by leaps and bounds over the 2013-2018 period. In 2017, mobile commerce will become more important as most of the companies are shifting to m-commerce. Mobile already accounts for 30-35% of e-commerce sales, and its share will jump to 45-50% by 2017. E-commerce is big business and getting bigger every day. Online shopping has been embraced by Indians with close to 25-30 million adults making a purchase via the internet in the last year. The paper said, online shoppers and buyers starting with a base age of 18 are becoming more involved with e-commerce in their early teens.
The reports also reveal that Bengaluru has left behind all other cities in India shopping online in 2016. While Mumbai ranks second, Delhi ranks third in their preference for online shopping. In other cities like Bengaluru, its population chose to buy daily routine products through e-shopping for apparel, gift articles, magazines, home tools, toys, jewellery, beauty products & sporting goods categories. Likewise, Mumbai share was for electronic gadgets, accessories, apparel, gifts, computer peripherals, movies, hotel booking, home appliances, movie tickets, health & fitness products and apparel gift certificates etc.
In 2016, it showed that a higher amount was being spent on average for popular categories such as apparel, mobile phones and cosmetics. There was also a significant increase in spending on categories such as watches and artificial jewellery. Computer and consumer electronics, along with apparel and accessories, account for the bulk of India's retail e-commerce sales. There is a surge in the number of people shopping on mobile across India with tier II and III cities displaying increased dominance. Year 2017 will see large scale growth in the Indian e-commerce sector with increased participation from people across the country. As per the joint study, the total retail sales in India will likely to increase from the $717.73 billion during CY 2014 to touch $1,244.58 billion by 2018.