Report: E-Commerce Growing and Driving Growth in India
Oct. 12, 2015
India is a nascent e-commerce market: small, but, with its enormous population and a payment infrastructure that will benefit from the mobile device, it seems poised for explosive growth. The results of two recent surveys highlight the e-commerce potential in the country. Snapdeal, the popular online marketplace, recently conducted a study with global consultancy KPMG that suggests e-commerce will be a growth driver for small and midsize enterprises (SMEs) in India. According to the study, 85 percent of SMEs engaged in e-commerce believe it is a cost-effective way to grow sales. More than half of the businesses that use e-commerce as a sales channel reported higher revenue and 49 percent said their profits were higher because of it.
Separately, Canadian market research firm TechSci Research predicted the e-commerce market in India will experience a compound annual growth rate of 36 percent between 2015 and 2020. The report cited a growing number of high-speed Internet users, significant recent improvements in the payment structure of the e-commerce market and a growing feeling on the part of Indian consumers that e-commerce is safe.
“India’s workforce majorly comprises young consumers who have less time for going out and shopping at regular brick-and-mortar stores,” said Karan Chechi, research director of TechSci Research. “Such a scenario creates humongous potential for online shopping in a market as huge as India. Moreover, great offers and discounts by the leading e-commerce players further increase consumer interest towards the products.”