Google Reports Indian E-Tailing Market is Expected to Reach $15 Billion
As per the Google report, the Indian e-tailing market is expected to reach $15 billion by the year 2016.
As per a fresh report by Google, the Indian online shopping market is bound to grow hugely within the next two years. The rise would be as huge as 15 billion dollars by 2016.
Two years back, in 2012, the online shopping market’s size was 8 million dollars. At present, it is at 35 million dollars. The online market has multiplied over 12 times over the past four years.
Annual online shopping growth trends report prepared by Google in collaboration with Forrester Research states that the online shopper base in India will reach 100 million by 2016.
This report mentions that new buyers from tier 1 and tier 2 cities numbering almost 50 million are expected to join the online shopping bandwagon.
Google India’s Managing Director, Rajan Anandan, said that because of the inclusion of 6 million new users to the internet every month, most of them on the mobile phone, India has a great opportunity in mobile transactions for online marketing. Mobile phones are, therefore, expected to become game-changers for the Indian online shopping arena. Major online players like Snapdeal are already getting more than half of their transactions through the cell phone.
Women buyers in tier 1 cities are proving to be active buyers than men outspending men by two folds, according to the Annual online shopping growth trends report. Women buyers are more interested in online shopping categories like apparel, beauty and skincare, home furnishing, baby products, and jewelry. This has added more luster both to these categories as well as to the overall online market. The search engine results trends as seen on Google showed immense volume for apparels, growing at 64 percent.
Nitin Bawankule, Industry Director for Ecommerce, Local and Classifieds, Google India says that “Though the shopper confidence in online buying has gone up, challenges like unsatisfactory experience, last mile connectivity and lack of confidence in online payment remain”. This phenomenon is evident from the fact that 50 percent of all online transactions are still made through Cash-on-Delivery (COD) in India.
The report also suggests that 62 percent of those who have shopped online have not been satisfied with their online shopping experience. Another striking fact is that such grievances have arrived mostly from the tier 2 cities of the country.