India’s online retail segment on a fast growth track

The online retail sector in India is growing between four and six times as fast as other more traditional retail formats as shoppers flock to online marketplaces, a report by property consultant Colliers International and researcher Frost & Sullivan said. It added that online retail grew 40 percent in 2013/14, compared to the 10-12 percent registered by organised physical retail and the 6-7 percent recorded by bricks-and-mortar retail.

And while e-tailing is still relatively new to India and so growing from a low base, it is having a profound impact on the country's retail sector as leading physical retail brands adopt an omnichannel approach and smaller neighbourhood stores get co-opted into the distribution chain for online purchases.

Another report from consulting firm TechSci Research anticipates the Indian ecommerce market will grow at a compound annual growth rate of 36 percent over the next five years, driven by increased penetration of smartphones and continuing significant discounts from the leading ecommerce players who are battling for market share.

TechSci Research also noted that improvements in the payment structure were making a difference. "Consumers in India are gradually shifting towards the online space and are shedding their belief of the online shopping medium being unsafe," the firm said.