In the second quarter of 2016, annualised gross merchandise value or GMV of Indian online stores dropped 5-10 per cent to $13 billion, due to fewer discounts offered by major online retailers. GMV refers to total sales clocked on an ecommerce website, while the quarterly or monthly GMV figure is forecast for the full year to get to the annualised GMV.
"While a strong growth pattern was noticeable in 2015, the annualised GMV run rate for Indian online stores declined sharply in both the quarters of 2016,” RedSeer Consulting founder Anil Kumar told media in New Delhi.
According to Kumar, the GMV run rate has dipped from $17 billion in the last quarter of 2015 to $14 billion in the first three months of 2016, falling further to $13 billion in the April to June quarter.
For the third quarter of 2016, Kumar expects GMV to be flat over the same period of 2015, while he forecasts the last quarter GMV to reach $17 billion, mainly due to the festive season.
He however expressed optimism by saying that GMV is projected to grow at a CAGR of 50-60 per cent to $80-100 billion by 2020, driven by increasing internet penetration and growing disposal incomes. (AR)
Fibre2Fashion News Desk – India