Report: India Shows Fastest E-Commerce Growth in the World
May 9, 2016
E-commerce in India is expected to grow at an annual rate of 51 percent over the next four years, the fastest growth rate in the world, according to a new report. The study, from the Associated Chambers of Commerce & Industry of India (ASSOCHAM) and consultancy Forrester, compared the expected growth rate in online sales to other Asian giants like China (18 percent), Japan (11 percent) and South Korea (10 percent). The study attributes the potential for incredible growth to a huge base of 400 million Internet users, along with the fact that 75 percent of them are between the ages of 15 and 34.
“This is expected to be a continuing trend in coming years, given the age distribution in India,” said D.S. Rawat, Secretary General of ASSOCHAM. “It is not surprising to see the growth among categories focused on younger audiences in the last 12 months.”
The report said online travels sites—especially railroad—have seen the biggest gains, along with retail. Branded apparel, accessories, jewelry, gifts and footwear are retail subcategories showing strong growth and do especially well on mobile devices. Currently, m-commerce accounts for 60-to-65 percent of total e-commerce sales. According to the report, industry leaders in India believe that m-commerce could contribute up to 70 per cent of their e-commerce revenues in the coming years.