The Indian e-commerce market for goods will grow to five times its current size by 2020, says a report by the Retailers Association of India and the Boston Consulting Group. The e-commerce industry in the country is reporting steep upward growth with the growing popularity of digital retail. Putting this growth into numbers, the report states that the Indian e-commerce industry currently stands at around US$8 bn to US$12 bn. By 2020, it could race its way to account for US$40-50 bn.
Interestingly, it is not products that will dominate the Indian e-commerce sales in the next four years. The report expects travel to represent about 60% of all sales reported in the Indian e-commerce industry by 2020. Not so surprisingly, electronic products will rank next by accounting for about 30% of e-commerce sales.
This points toward an interesting trend which reiterates the growing love for travel Indians are exhibiting. The Indian travel industry itself is in a state of flux with several offbeat packages and tour operators having sprung up in the last couple of years. As the profile of internet users shifts, the map of digital retail will undergo a massive change as well.
Internet access is spreading wider in both urban and rural India, picking up millions of new consumers along the way. The report also expects that the number of internet users in India will more than double by 2020, by which year it will reach 650 mn from the current count of 260 mn. The growth of urban users will drive a considerable part of e-commerce goods sales in India, where the logistical systems facilitate the easier delivery of goods ordered online. The report predicts that the number of internet users in urban India would rise from 80 mn presently to 120 mn by 2020.
Another finding of the report – one that could prompt e-commerce companies to provide gender-specific services – is that women will account for 40% of all users by 2020. Presently, their share is estimated to be 29%.