Every year the internet users in India are increasing rapidly and along with that e-commerce market in India is also increasing. Earlier we have discussed about the Scope of Online Shopping Website in India. Currently India has more than 137 million internet users, but only a few percent of them are using e-commerce services. Even though only a few percentage is using e-commerce services every year number of internet users utilizing the service is increasing along with the number of internet users. Current e-commerce revenue is around 10 billion US$ and markets is expected that by 2024 it will become 125 US$ billion. This study focus on most sold e-commerce product category in Indian e-commerce industry.
Indian e-commerce Industry can be classified into two according to the type of product they are selling.
- Travel e-commerce industry.
- Retail e-commerce industry.
India’s travel and tourism are second fastest growing travel and tourism industry in the world. In 2013 it grows by 18% and reach 23.3 billion US$ and 27% of this (8.8 billion), is contributed by online travel market. 75% of total Indian e-commerce industry, business is contributed by the travel related e-commerce industry. The main businesses are: Online air ticket booking, online train ticket booking, online bus ticket booking, online hotel booking, online tour package booking and online movie booking. Among this Online air ticket booking contribute the major part. Given below is an analysis done by Ernst & Young.
Since we are focusing on the retail industry for the time being we are not considering travel related e-commerce booking. Indian online retail is moving from consignment model to inventory holding model. Even though online travel business contributes more than 75% of total e-commerce business e-trading is growing 4 times as fast as online travel industry. The graph given below shows the growth percentage online travel and online retail industry.
Most sold product category in Indian e-trading industry
Source : ComScore
Among the sub categories apparels are the fastest growing retail market, which contributes more than 13.4 % of total e-retail market. Comparison shopping, which compares the price of goods and services grows faster than all other e-trading category. Consumer goods, sports/outdoor products and retail food sub categories have also shown early growth signs. Consumer goods being a popular category among horizontal retailers is still way below global averages.
A talk by Google India MD Rajan Anand on Indian e-commerce market is embedded below.