Worth US$23bn in 2015, the chambers of commerce association believes the overall e-commerce market, which covers all retail segments, will touch US$38bn over the next 12 months—a leap of 67%.
E-commerce has already showed it is one of the fastest-growing areas of retail over the last half-decade or so, said DS Rawat, Assocham’s secretary general.
It was worth around US$3.8bn in 2009, increasing to US$17bn in 2014 and US$23bn in 2015, during which it experienced 52% growth.
Mobile commerce has been growing especially rapidly, and is now proving to be a game changer with the potential to contribute up to 70% of total online retail revenues, said Rawat.
“The customer is connected 24-seven through their smart phones, tablets and other mobile devices, which is leading to a gradual evolution of e-commerce into mobile commerce. There is also an issue of convenience which also leads to impulsive buying,” he said.
Mumbaikars are now the leading adopters, followed by Delhi residents and consumers in Ahemdabad, Bangalore and Kolkata.
Almost 45% of online shoppers reportedly preferred cash on delivery mode of payment over credit cards (16%) and debit cards (21%). Only 10% opted for internet banking, and a scanty 7% preferred cash cards, mobile wallets, and other alternative modes of payment.
Assocham also found that many small companies had established online stores for group buying, and recommended that shopping centres, wholesale markets and supermarkets create their online stores to reduce costs and develop product-tracking systems.