Home / Knowledge / News / Apparel/Garments / E-commerce in India likely to reach $100 bn by 2020
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

Must ReadView All

Apparel/Garments | On 28th Feb 2017

Delta Galil's Q4 operating profit jumps 80%

In the three months to December 31, 2016, operating profit at apparel ...

View of YiwuTex 2016; Courtesy: YiwuTex

Textiles | On 28th Feb 2017

Smart knitting system to grace 18th YiwuTex 2017

The thematic functional knitting machinery zone at the 18th YiwuTex...

Textiles | On 28th Feb 2017

Over 100 exhibitors expected to participate in IATF

Over a 100 exhibitors are expected to showcase their products at the...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search