Digital commerce market to reach Rs 62,967 cr by year-end
Led by a spurt in online travel bookings, the digital commerce market in the country is expected to grow 33 percent to reach Rs 62,967 crore by the end of 2013, a report said Monday.
New Delhi: Led by a spurt in online travel bookings, the digital commerce market in the country is expected to grow 33 percent to reach Rs 62,967 crore by the end of 2013, a report said Monday.
"Total digital commerce market of India was valued at Rs 47,349 crore in December 2012 and is expected to grow by 33 percent and reach Rs 62,967 crore by year 2013," says the digital commerce report by Internet and Mobile Association of India (IAMAI) and IMRB International.
The report said travel transactions have proved to be the primary fuelling factor of the digital commerce industry.
"As of 2012, among Internet users, online travel leads the pack with 73 percent share in digital commerce (Rs 34,544 crore). This segment is estimated to show 30 percent growth by the end of year 2013 and reach Rs 44,907 crore," it said.
Non-travel transactions contribute to the remaining 27 percent (Rs 12,805 crore) of the market which includes with ETailing or electronic retailing, financial services, classifieds segment and other online services.
"As a whole, the non-travel industry segment is expected to mature by 41 percent and reach up to Rs 18,060 crore by December, 2013," the report said.
The report said facilitators like low cost of personal computers, a growing installed base for Internet use, and an increasingly competitive Internet Service Provider (ISP) market are expected to keep fuelling the e-commerce growth in the same way.
The survey, which was conducted in top 35 cities of the country, said among 33.8 million active Internet users who access the Internet at least once in a month, there are 19.6 million users who look for detailed information regarding services.
"Of these, there are 14.3 million (73 percent) users who have actually bought any product or service over the Internet," it added.
However, the percentage of people who access Internet only for looking information related to various products and services have decreased from 45 percent in 2009 to 27 percent in 2012, it said.
"Out of all the categories bought by the online shoppers, the share of online travel (47 percent), apparels and footwear (20 percent), books (19 percent) and mobile phones and accessories (17 percent) was the most," it said, adding that debit cards, net banking and credit cards remained top most preferred modes of payments.