The E-commerce market in India has a user base of about 483 million (as of July 2019) and is increasing by the day, which is about 40% of the country’s population.
This number is expected to reach 630 million by the end of 2019 and an astonishing 666 million in the year 2020.
Despite the huge number of internet users and though we are the second largest online market only behind china by a margin (650 Million i.e.; 48% of the country’s population), the penetration of e-commerce in our country is very low compared to countries like USA with an 84% or 266 million internet users or with France which has an internet user base of about 54 Million i.e.; 81% of its population.
However, India has lately been recording a growth of about 6 million new entrants every month.
In the year 2017, the biggest e-commerce players in India were Flipkart, Amazon, Myntra, PayTm and Snapdeal.
However, in the subsequent year Amazon beat Flipkart to occupy the first spot.
In the year 2009, Internet was used by only 62 million users generating a revenue of about $ 3.9 Billion which has now grown to a whopping 630 Million users generating an enormous $200 Billion
revenue in 2019 and is predicted to grow up to $1.2 trillion by Deloitte India and Retailers Association of India (RAI) in the near future.
The largest spike of online users in the Indian market was seen in 2017 and this is when the online users jumped by approximately 50% from 295 million in 2016 to 440 million in the year 2017.
This is when Amazon.in announced their globally popular service like the “Amazon Prime membership” and this entitled its users to a two day delivery privilege and access to the “Amazon Prime Videos.”
The Amazon Prime Videos service was introduced at a time when India was getting introduced to the free services from Reliance Jio and everyone was exposed to a world of unlimited data.
Today Amazon offers almost everything, ranging from clothing to electronics to even groceries.
You can buy almost all that you need on a daily basis from Amazon.in nowadays and they offer two hour shipping for most eligible products from the pantry category.
You can buy all your daily essentials and groceries from the category selection like pantry and they would be delivered to your place in a time slot you’ve selected and mostly within 2 hours.
No wonder, Amazon has captured the online market in India today and plans to be the biggest e-commerce website in the world.
Though the Indian online market is growing rapidly and is
witnessing a tremendous growth, many e-commerce ventures have
faced an immense pressure to ensure cash flows which did not
work in their favor resulting in the closure or change in their
business models for survival. Some of these are Dhingana,
InidiaPlaza.in and Rock.in.
The spread of e-commerce players has also led to the rise in Niche players like Myntra who deal only in Fashion products.
Online apparel is one of the most popular verticals today, which makes up 42% along with consumer electronics.
Some established brands like Arvind are now creating a separate clothing line just for their online customers.
As these small but Niche businesses get popular, they are getting
acquired by the big players, Just like how Myntra was acquired by Flipkart India In the summer on May 2014 at a cost of $ 300 Million,
BabyOye was acquired by
Mahindra retail to be a part of the $ 17 Billion Mahindra group while
the Ekstop was acquired by Godrej Group to be a part of its chain of Nature’s basket group.
With the ongoing trends and predictions displayed in the image above, the future of e-commerce in India and the world looks to be vivid and appealing.
Like J HILLBURN once said…
E-Commerce And Mobile Commerce Have Dramatically Changed The Way Brands Reach Customers, Making It Faster And Easier For Consumers To Make Purchases On The Fly While Avoiding The Hassles Of Going To The Store.— J.Hilburn Hil Davis