A joint study conducted by Assocham and Forrester predicts that Indian e-commerce revenue is set to grow by 350 percent in the current festive season. Indian e-commerce currently generates revenues of around $1.6 billion but is expected to touch $8.8 billion by 2016. However, this is way below revenues from online shopping generated in China and Japan.
While current e-commerce revenues in India are not very high, the compound annual growth rate is very high. Indian e-commerce has been growing at an annual rate of 250 percent for some time now. This is attributed to the fact that many Indians find online shopping convenient. The free shipping and 24/7 availability are appreciated by Indian consumers. The consumers are able to save time and money on transport and can complete their purchases when they are free by accessing a wide variety of goods and comparing products easily.
There are 121 milion Internet users in India, and half of them shop online. This festive season apparel, electronics, consumer gadgets, mobile phones, furnishing, home décor, and jewelry are expected to account for the bulk of revenues from e-commerce.
The survey was conducted among 2,000 respondents across the country.