According to a joint ASSOCHAM-Forrester study paper, India’s e-Commerce revenue is expected to jump from $30 billion in 2016 to $120 billion in 2020, with an annual growth rate of of 51%, the highest in the world.
There are several factors driving this accelerated growth:
India has the youngest demographics globally with more than 75% online users in the age group of between 15 – 34 comprising both male and female. This trend is expected to continue over the coming years making India an opportunistic marketplace for eCommerce players as young generation is well-versed with the digital world.
2) Digital Penetration
With telecom companies expanding their reach to rural India, things like internet, wifi connection are no more fancies. It is well in the reach of a common man staying in rural areas to afford mobile phone with internet connectivity enabling them to access eCommerce websites.
3) Per capita income
According to a report by Morgan Stanley Research, per capita income of Indian Internet Users is going to double by 2025 which will increase their buying aspirations.
4) Lifestyle changes
India being a growing economy offers a wide range of career options to the young generation. This reflects on their standard of living and lifestyle. Attractive pricing, numerous options and ease to buy from anywhere makes eCommerce the new “cool” thing.
It further said that this boom seems to trigger partnerships and collaborations across the value chain to optimise costs and provide optimum service.