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50 mn Indian internet users buy products online: Report
May '18
India has an online population of 500 million but only 50 million online users buy some kind of products online, according to a recent report. India has one of the fastest growing Internet population in the world. A Compound Annual Growth Rate (CAGR) of 13 per cent will take the number of online users to 720 million, close to where China is currently.

The CAGR of the Indian online user growth is nearly four times that of global rate. Thus, India currently has one of the largest pool of growing e-commerce startups, says the Redseer report called Ecommerce Industry in India.

The number of online shoppers is expected to grow at a CAGR of 28 per cent to reach 120 million by 2020. Of the 50 million online shoppers, there are just 20 million monthly active e-tailing users. Growing internet and smartphone penetration has driven a steady growth of e-commerce users but India is still under penetrated in comparison to other geographies. E-commerce users, which are about 48 per cent of internet users in the US and about 22 per cent in China, are just 10 per cent of the total internet users in India.

The key drivers of this growth are the growing online population and rapidly growing access to smartphones. Telecom providers like Jio have brought in more and more people online by reducing the data price and providing good data connectivity. The consumer mindset is also changing, with higher disposable income more and more people have started using smartphones, notes Redseer.

The Indian e-commerce has seen a steady growth over the years from 2014 and is currently pegged at $53 billion. The report says that the growth of 25 per cent would continue and the Indian e-commerce industry would cross $100 billion marker by 2020. E-tailing dominated by the giants Flipkart and Amazon is pegged at $18 billion (including fashion). The e-tailing industry will grow due to the rapid addition of online shoppers with online penetration increasing to 7-8 per cent. (KD)

Fibre2Fashion News Desk – India

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