Chennai: Online retail service provider Myntra.Com on Thursday said it is working on applications that would provide mobile shopping facility to its customers as this segment is set to expand rapidly starting next year.
"We have already started working towards developing necessary applications to provide a seamless mobile shopping experience to our customers," Myntra.Com Founder-CEO Mukesh Bansal said.
Stating that the Internet usage through PCs is still higher than through mobile, Bansal told PTI, "While mobile usage is on the rise, we expect this medium to take off for e-commerce only next year."
Citing a report, Bansal said the Indian online retail space is set to reach over USD 8.8 billion by 2016 from the present USD 1.6 billion.
"The online format has added additional consumers from tier II and III cities thereby increasing overall demand. The industry has been growing at an annual rate of 35 per cent," he said.
India now has almost 120 million online users of which 10 per cent make online transactions, he said, adding that online user base is expected to be over 300 million in two to three years.
"Fashion and lifestyle retailing is a USD 50 billion market in India and it is expected to touch USD 100 billion by 2015-16. Of this, online retail will constitute about 5-8 per cent," he said.
He said one of the biggest challenges faced by e-commerce players is managing "supply chain and logistics".
Bansal said most of their consumers are in the 22-35 age group with 60 per cent being males. "About 50 per cent of the business comes from the top 10 cities, with the rest driven from tier II and III cities", he added.
Noting that the television industry is one of the strongest marketing channels for promoting online portals, he said, "Digital and social media marketing plays a vital role since a vast majority of our customers are online across various social media platforms".
Asked if the company would diversify its portfolio in online retail, apart from retailing fashion and lifestyle products, he said, "We will continue to operate in this space and add categories related to fashion and lifestyle."
First Published: Thursday, October 18, 2012, 11:31