+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

E-commerce market to touch nearly $55 billion by 2021

Feb 15, 2017, 16:20 IST
It is expected by the e-commerce market to be at USD 50-55 billion by 2021. Currently, it is at USD 6-8 billion.
Advertisement

According to a report by Retailers Association of India and Boston Consulting Group, on decoding the digital opportunity sectors that could see maximum e-commerce penetration would be consumer electronics, apparel, home ware and furniture, luxury, health, FMCG and food and grocery.

The report also said that by 2025, consumer electronics would see maximum penetration of e-commerce between 38-42 % compared to 13-15 % currently, while food and grocery could see the least growth with 1-3 % of e-commerce penetration from under 1 % currently.

It also said that convenience is the main driving force for buying online. From 40 % in 2014, the report notes that more than 55 % purchase online were due to convenience.

The digital purchasing has been catalysed by progress in infrastructure, including falling smartphone prices, reducing data charges, and rising smartphone penetration.

Advertisement

"Smartphone penetration has increased from 3 per cent to 30 per cent in the past five years. Besides, the prices fell by up to 50 per cent between 2011 and 2015," it said.

It also highlighted the fact that e-commerce adoption has increased 3.8 times from 4 %to 15 % in the over-35 age group between 2014 and 2016.

Similarly, social media adoption has increased 2.9 times from 8% to 23% in the same time period.

The report further noted that in order for companies to take advantage of the current digital wave, they will have to digitise their core business, to unlock significant value.
Next Article