With a vast population of 1.15 billion, India provides a fertile market for eCommerce transactions today. There has been a surge in the Web-based businesses leading to an increasing activity in B2B, C2C, G2B, and G2C segments for business transactions.
India today ranks at fourth position in terms of Internet usage. According to the report, internet usage has nearly doubled over a span of 4 years (2006 – 2009). Total number of internet users were 40 million in 2006, which doubled to a figure of 81 million in 2009.
Urban population in India is approximately 30%, with rural population comprising majority at 70%. According to the survey conducted by Internet and Mobile Association of India (IAMAI), the rural internet users have outgrown the number of urban internet users. The surge is attributed to increase in numbers of users in remote urban areas and towns and among lower socio-economic classes. Additionally, there has been an increase in usage of internet for activities like email, social networking, entertainment, and education. However, to ensure a better engagement and utility in the rural market, internet services need to be provided at rates which are affordable, language offered should be of the choice of users. Further survey by IAMAI shows that as compared to a usage of 5.6 hours in a week in 2001, the usage has gone up to 15.7 hours a week a 2009.
Indian youth (18-25 years), an early adopter of technology, contribute a major chunk of 44% in internet usage. This is followed by young men, who contribute 28% in internet usage. Together the youth and young men in (age group 25-35 years) contribute 72% internet usage.
Currently, 37% users rely on cyber cafe for internet usage.
Provided below are some statistics about eCommerce in India.
Internet and mobile usage: In India, there is an increased demand for data with multimedia functionalities in the mobile broadband access. Currently, there are about 600 million mobile broadband subscribers and this figure is expected to go up to 800 million in 2010. Addionally, according to a survey conducted by CIOL, the Indian government has plans to expand broadband coverage to connect every gram panchayat to broadband network by 2012.
Online Publishing: Online news and information viewership has increased by 37% in comparison to 2008.
Gaming: In 2010, Rs 575crore market is projected for console-based gaming. Mobile gaming is expected to be at Rs 812.5 crores.
Online Shopping: eCommerce market in India is expected to be worth Rs 9500 crores, out of which market for online shopping is worth Rs 1300 crore.
Online Advertising: Online advertisement industry grew to Rs 3250 million in India, accounting for 38% growth rate in 2008-2009. The growth rate for the year 2009-2010 is expected to be 32% which amounts to Rs 4300 million.
Benefits of eCommerce:
Development of eCommerce in India is mainly attributable to political stability, education, increase in foreign exchange programs. This has led to an increase in number of highly trained personnel who have good programming and online skills.
As opposed to past, when the businesses needed specific skills, they had to incur expenses for plane ticket, hotel stay, and other needs of the professionals. But today, with eCommerce, businesses can make use of expertise of individual people, without having to limit themselves to geographical location.
eCommerce has led to unlimited shelf space for products and services.
eCommerce has helped businesses to reach national and global markets at low operating costs.
As far as consumers are concerned, eCommerce has revolutionized the buying patterns and choices. With huge amount of available information, consumers have the flexibility to pick up the product of their choice, make comparisons, and evaluate their prospective purchase. The search facility has provided a huge base of information, which can be further refined with the help of search criteria. Delivery time and costs are reduced when buyers buy goods digitally.
With eCommerce, individuals can work from home and shop from home, which reduces the need to travel. This has other benefits like reduction in air pollution and traffic. Government agencies are benefited with eCommerce as queues and effort involved in paying taxes, booking railway tickets are greatly reduced. The health services also stand to benefit because doctors and nurses can gain appropriate information from the internet and be connected with updates easily.
To get more detailed information on the eCommerce industry in India, visit the following link at India reports: http://www.india-reports.com/summary/ecommerce_in_india.aspx. India Reports provides analysis, reports, PPTs and statistics on India. India Reports also provides clients with custom-made reports to meet specific needs.
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