E-commerce to witness burgeoning growth by 2020: Report

Bengaluru

Speaking at the release of the report, Google India Managing Director Rajan Anandan said the e-tailing industry in the country was at an inflection point and will touch 175 million online buyers in the next five years.

“Having said that the next three to four years will be critical for the industry to get on the path of sustained profitability. As per the report some areas that accelerate and support profitability include addition of 60 million high value customers as they will drive two-thirds of the total spends on e-tailing,’’ he said. The report said lifestyle will overtake consumer electronics as the largest category by 2020 and there will be a five-fold growth in the number of women  shoppers by 2020 and women would double their share of online spending compared to current figures. They are likely to spend more on lifestyle categories, namely apparel and accessories and are looking for the latest trends and brands online.

People across age groups and geographies, consumers and merchants, have all unilaterally embraced the benefits that online commerce brings to the table. This wholesale enduser adoption means that the exponential growth that it has embarked upon is expected to continue in the future as well.

Anandan said innovative delivery models and creating omni channel presence will help bring on board new online shoppers and help grow the overall  share of e-tailing from the organised retail industry in India. At present the Indian e-commerce industry is estimated to be worth $38 billion. The report said by 2020, e-commerce will increase its share of organised retail to 25 per cent and reach USD 60 billion in gross merchandising value.

Ajay Gupta, partner with AT Kearney said with the right game plan and focused efforts the e-tailing industry will grow at a healthy rate of 40 per cent per annum.

“The survey revealed that majority of buyers will continue to purchase online even if there were no discounts. As the internet continues to grow, digital presence is paramount for brands and organised retail. It will influence 50 per cent of all purchase decision be it in discovery or comparison,’’ he said.