Home / Knowledge / News / Apparel/Garments / Indian e-com will continue to find more takers: Report
Indian e-com will continue to find more takers: Report
08
Sep '16
As organised retail penetration remains limited in tier II and III cities, e-commerce will continue to find more takers in India, says a latest report. Buyer penetration is expected to improve from 12 per cent in fiscal 2015-16 to 18 per cent by 2019-20. During the same period, annual average online spend is projected to rise at 10-15 per cent year-on-year.

Owing to increase in number of buyers and stable annual spends per consumer, India’s e-commerce sector is expected to reach $28 billion by FY 2020, says the report from Kotak Institutional Equities.

The e-commerce industry is estimated to grow at compound annual growth rate of 45 per cent over FY 2017-20, in line with the gradual improvements in household incomes and infrastructure development. However, this pace of growth would be slower compared to 116 per cent CAGR growth seen in China between 2009 and 2015.

“We believe Indian growth in e-commerce will be more gradual, in line with gradual improvements in household incomes and infrastructure development. Further, in order to be more profitable, e-commerce companies may still need to change buyer behaviour as far as high proportion of cash-on-delivery and product returns are concerned,” say analysts Kawaljeet Singh and Garima Mishra in the report.

The study recommends e-commerce players to diversify away from sales of mobile phones and electronics, where margins are thin and opportunities for product differentiation versus competitors are minimal, unless the e-tailer manages to get exclusive products to sell. “Customer loyalty would need to be cultivated on large and varied product assortment, quick delivery and after sales support (particularly for higher ticket items), and liberal returns and exchange policy, coupled with flexibility for the consumer to pay in cash,” it adds. (RKS)

Fibre2Fashion News Desk – India


Interviews View All

Top executives, Textile industry

Top executives
Textile industry

RoSCTL is need of the hour

Top executives, Fashion houses, India

Top executives
Fashion houses, India

With technology, it has become easier to ensure IPR

Yashiki Gumber, Sahiba Fabrics

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Erik Sy,

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Ashish M Amin,

Ashish M Amin

Premier Looms is a leading provider of cutting-edge machinery and...

Laksheeta Govil,

Laksheeta Govil

Founded in 2014, Fizzy Goblet is a Delhi / NCR based handcrafted leather...

Paolo Ocleppo, Sandvik Hyperion

Paolo Ocleppo
Sandvik Hyperion

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

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

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

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant & Nandita are known for being inspired by...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

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

Leave your Comments


November 2019

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

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search