Report: Indian E-Commerce to Reach $8 Billion in Revenue by 2016
Feb. 27, 2014
Annual e-commerce revenue in India is set to triple over the next three years to more than $8 billion, according to Mumbai-based Crisil Research. Given that Walmart alone made $10 billion last year in e-commerce sales, the number is relatively small, but an $8 billion market by 2016 represents 50 to 55 percent annual growth for the sector with the number of Internet connected consumers in the country set to explode. The other reason to be excited about Indian e-commerce is the share of total retail sales it accounts for, according to Rahul Prithiani, director of industry research for Crisil Research, and the room for growth there.
“From around 8 percent share of the organized retail market in India now, online retailing will zoom to around 18 percent by 2016. But as a proportion of overall retail including the massive unorganized segment it will be just over 1 percent at the end of that year. Yet the potential is huge. For example, in the U.S., which is the biggest market for online retail, and the U.K., the share of online retail is around 9 – 10 percent. Even in a developing market such as China, it is 4 – 5%.”