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E-commerce in India likely to reach $100 bn by 2020
09
Dec '15
E-commerce market is likely to grow ten times in the next five years to reach $100 billion on the back of increasing penetration of Internet, smartphones and spread of digital network in rural areas, says a study by industry body FICCI and consultancy firm KPMG.

The report titled 'Direct selling; Mapping the industry across Indian states', says India's e-commerce sector, which is around $10 billion (Rs 65,000 crore) at present, can even touch $250 billion in next ten years as digital network would spread in the rural areas.

“By 2020, e-commerce would be $100 billion industry... Presently China has a $450 billion e-commerce (market) and India is just $10 billion. India in next 10 years, in my mind 10 years, would be close to $250 billion of e-commerce," DIPP Secretary Amitabh Kant said while releasing the report.

By 2017, India will have 350 million smartphones and it will create demand, the report said.
Meanwhile, e-retailing and various other formats of retail such as direct selling could co-exist and grow as there are several models growing in retail across the world.

"We would see several trends growing, while e-commerce has mushroomed in India recently... by 2017, we would have 500 million Indians connected to Internet and it would create huge consumer opportunity," Kant said.

India will also witness rapid urbanisation and create an economy driven by the middle class. According to the report, direct selling in India has grown at a CAGR of 16 per cent over the past five years and is presently at Rs 75 billion.

However, "the market grew at a lower rate of 4 per cent in 2013-14 due to slowdown in the industry", the report said.

It added that there are several factors such as fly-by-night ponzi and pyramid schemes that are often confused with direct selling. Lack of a clear definition of the industry and centralised regulations are hampering the growth of the sector, it said. (SH)

Fibre2Fashion News Desk – India


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