Assocham: Festive e-shopping to increase by 350%

E-Shopping during the forthcoming festive season is likely

to move north by 350 per cent for a variety of products. And the Gujarati community will take a lead in shopping online, according to a report by industry body Assocham. The report said that people may buy mobile phones, e-tablets, consumer electronics, home appliances, home decor, furnishings, apparel and ornaments online.

It said that the number of e-shoppers was multiplying due to factors like home delivery which saves time, ‘24x7’ shopping with ease and availability factors for product comparisons. The study jointly undertaken by Forrester and Assocham, says that e-commerce revenues in India would increase by more than five times in four years, jumping from $ 1.6 billion (Rs 8,688 crores) in 2012 to $ 8.8 billion (Rs 47,291 crores) in 2016. While this is still less than other countries in Asia Pacific, such as China and Japan, India’s CAGR is much higher than any other country, D S Rawat, Secretary-General, Assocham said.

Discounts on many articles sold around Diwali range from 10-15 per cent to 80-90 per cent depending upon the product vertical. The other offers are lucky draws, free shipping, free gifts and gift vouchers. An estimated 1.25 crores customers e-shopped items worth around Rs 5,000 crores in 2011. With the number of online shoppers registering a phenomenal 250 per cent annual growth, many retail chains and consumer durable companies are joining the web bandwagon to tap the e-shopping market.

At present the online market, estimated at Rs 6,000 crores, is growing at over 250 per cent annually. India has more than 12 crore Internet users, out of which around half opt for online purchases and the number is growing every year. With such a large market size, companies, right from retail shops to consumer goods, are entering the web space to attract potential customers.