E-Commerce in India: Wheel of Change

Today, before we move out to shop, we do ensure to check out things online, compare prices, read reviews and even make purchase decisions. Welcome all to this new state of bewildered but well informed consumerism in India.

The advent of this disruptive revolution among Indian consumers has led to a new wave in organized retail.

Though e-commerce in India is still in it’s infancy but it is growing at a frantic pace and has started to make some impact in metros. At $6 billion, we are still minnows in global e-commerce markets where USA ($250 billion) and China($70 billion) are at their prime. Even in $600 billion Indian retail industry, e-commerce contributes mere 1% which is miniscule compared to the some of the European markets boasting of as high as 20%. However, the silver lining is we are growing at a rate of 35-40% CAGR and slated to touch around $60 billion by 2020.

We are billion people country with a mobile penetration of almost 80% and now 40% of them are on smartphones which means a sizeable population is internet ready.Secondly, majority of our population is very young which demonstrates exuberance to build and adopt anything new coming their way so this new retail form is expected to have a very fast adoption rate.