E-commerce
market is expected to be at $50-55 billion by 2021 from the current
$6-8 billion, according to a recent report. The report by Retailers
Association of India and Boston Consulting Group revealed that on
decoding the digital opportunity sectors that could see maximum
e-commerce penetration would be consumer electronics, apparel,
homeware and furniture, luxury, health, FMCG and food and grocery
By
2025, consumer electronics would see maximum penetration of
e-commerce between 38-42 percent compared to 13-15 percent currently,
while food and grocery could see the least growth with 1-3 percent of
e-commerce penetration from under 1 percent currently, the report
noted.
In
the last three years alone digital buying has increased from 3
percent in 2013, to 23 percent in 2016. The overall digital influence
on consumers has increased from 9 percent to 30 percent during the
same period.
The
report notes that convenience has overtaken discounts as a key driver
for buying online. From 40 percent in 2014, the report notes that
more than 55 percent 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 percent to 30 percent in the past
five years. Besides, the prices fell by up to 50 percent between 2011
and 2015," it said. 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.
E-commerce
adoption has increased 3.8 times from 4 percent to 15 percent in the
over-35 age group between 2014 and 2016, it said. Similarly, social
media adoption has increased 2.9 times from 8 percent to 23 percent
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, the report noted.
With the Reference : firstpost