New Delhi: The Indian online retail market is all set to witness another round of mergers and takeovers – and of huge discounts. Walmart taking over Flipkart and the decision of Mukesh Ambani’s Reliance Group to jump into the e-commerce business has set the stage for major changes in the market.
Discounts to grow
The buyers will have more options and the discounts will grow. Home delivery segment is all set for a quantum jump. According a report by ASSOCHAM and Resurgent India Limited, the number of online shoppers may touch the 12 crore mark by the end of this year. Last year, 10.8 crore Indians had taken the online buying route.
33% year-on-year growth
According to estimates, excluding services, the size of e-commerce market in India currently is Rs 1.2 lakh crore rupees. According to CRISIL Research, it may grow to 2.7 lakh crore rupees by 2020-21. The e-commerce market is likely to witness a 33 to 38 per cent year-on-year growth till 2020-21.
According to Sankalp Bhattacharya, Deal Strategist with PricewaterhouseCoopers (PwC), of late, discounts in e-purchases had become few and far between, except during the festive season. After Reliance deciding to join the e-commerce market, discounts and special sale campaigns would stage a comeback. He also said that presently around 2,000 companies are into the e-commerce business in India. In the future, only three or four mega companies will rule the market and the rest would either be taken over or would disappear.
Rahul Pothiyani of CRISIL Research said the e-commerce industry grew at the rate of 45-50 per cent per annum from 2012-13 to 2017-18. Over the next couple of years, the growth rate may fall to 33-38 per cent, with two-three companies accounting for over 75 per cent share in the market.
Percentage of products bought through online platforms
% bought online
|Clothes and accessories||54|
|Beauty and personal care||43|
Mode of payment
Around 58 per cent of the buyers prefer to use the Cash-on-delivery mode for making payments, while 23 per cent use debit cards and 17 per cent credit cards
Market share in online shopping
(Story: Dharmendra Singh Bhadoria)