Indian e-commerce market to swell in 2015

Enterprise Innovation editors
05 Jan 2015
Daily News

Average annual spending on online purchases in India is projected to increase by 67% in 2015, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) is predicting.

The industry body expects the average Indian consumer to spend 10,000 rupees ($158) online in 2015, up from 6,000 rupees($95) in 2014.

About 40 million consumers purchased something online in 2014, the ASSOCHAM-PwC study showed. That number is expected to grow to 65 million by 2015.

Better infrastructure in terms of logistics, broadband and internet-ready devices will be fuelling this demand. Online apparel sales, along with the computer and consumer electronics sector, will help fuel overall market growth.

The sector likewise attracted investors, including top global firms and leading industry leaders, while brands like Flipkart and Snapdeal have enjoyed an edge over the global players like Amazon, according to the report.

The Indian e-commerce industry, currently valued at $17 billion, growing at an compound annual growth rate of about 35% each year and will cross $100 billion in the next five years, the study further noted.

D.S. Rawat, secretary general of ASSOCHAM, said smartphone and tablet shoppers will be strong growth drivers, during the release of the study.