E-Commerce Market Boom - A Boon for

Indian Economy

E-commerce market in India - a bomb ready to explode

Capturing India’s rapidly growing e-commerce market has been a holy grail of tech entrepreneurs for years.India is a country with a booming economy, rapid growth of internet penetration, and a market of 1.2 billion. It’s also a place where consumers have a lot to gain from not going to the stores. A shopping trip can mean being packed into trains like sardines, navigating streets jammed with stalls and cow herds, or haggling with aggressive rickshaw drivers. The city centers are chaotic, and the contents of a

shopping list are distributed over dozens of different stores or street stands. It seemed the perfect place to build a robust online economy

For India's e-commerce industry, the times they are a-changin'. While the e-commerce penetration is low compared to the United States and several European markets, it is growing at a much faster rate with a large number of new entrants.Most industry analysts agree that the growth is at an inflection point. India's e-commerce market was worth about US$2.5 billion in 2009, US$6.3 billion in 2011, and $14 billion in 2012.

The country has close to 10 million online shoppers and this number is growing at an estimated 30 percent.While there have been some obvious deterrents of shopping online like the inability to touch and try the goods before purchasing, concerns over receiving faulty products, and security concerns in posting personal and financial details online, there are unique aspects of online shopping in India.

For example, cash-on-delivery is the most preferred payment method. India has a vibrant cash economy and as a result, 80 percent of e-commerce transactions in the country are cash-on-delivery. Also, direct imports constitute a large component of online sales. There is huge demand for international consumer products that either are not available in India or are expensive on retail shelves.

On the other hand, online shoppers have also been positive toward global trends. Online classified sites like eBay and local players--OLX and Quikr--see more consumers buying and selling second-hand goods. Also, major e-commerce players ( Online Shopping Sites in India ) like Infibeam and Tradus, Flipkart and DietKart soon, are also adopting the online marketplace model.

Revenue models look shaky. To secure repeat business, most portals offer incredibly low prices, payment by cash on delivery and, nearly always, free shipping. Consumers love it but companies are scratching around for ways to shed the operational burden. Ironically, the very things that have propelled e-commerce in India could lead to its downfall.

There is no doubt that India is a land of opportunities. At the moment, there are 3 sectors in the country which are making considerable growth, it comprises of – Retail sector, Entertainment sector, and Hospitality sector. As the base of Indian e-commerce grows,Still, the difficulties for Indian e-commerce are not going away any time soon. Cash on Delivery seems here to stay, and the problems of unreliable third party couriers will take at least a decade to resolve.

Let us talk about these different sectors starting with the retail sector. India has emerged as a favorite destination for the retailers from different parts of the world. The main reasons behind this comprises of significant alterations witnessed in the consumer behavior and lifestyle.

Today, Various online retailers are coming forward as key channels for the varied consumer brands in the nation. Today, there is a huge variety that is available, you name it and online shopping websites have it.

When we talk about the media and entertainment industry, as per a survey, the industry is scheduled to grow 11.10% this year. The reach of the Indian entertainment industry is just stupendous. The industry is mainly driven by improved digitization, regional medial growth, and the film industry (Bollywood).

The best example is the latest Bollywood release ‘Chennai Express’, which has become the highest grossing Indian movie ever with the total profits crossing Rs. 200 crore mark.

With the boom in the tourism industry and with the rising westernization, the hospitality sector has also witnessed a boom in India. Undoubtedly, the hospitality industry is one of the leading sectors of the world. In India, it is relatively new but still it is witnessing significant investments.

The technology sector has also scaled new heights in India. With the coming of smartphones, people have easy access to various online portals on smartphones. India has great potential and gradually the world has realized this, leading to the growth of the above discussed and various other sectors.

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