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Luxury e-commerce in India to touch $35 bn by 2016
09 May '15
2 min read
Indians are likely to spend $35 billion on online luxury stores by 2016, compared to $8 billion in 2012 growing at an compound annual growth rate of about 25 per cent, due to rise in disposable incomes, expansion of modern retailing and influence of western culture have provided a platform for promising growth for luxury industry in India, according to a recent study by Assocham .
“Luxury shoppers are well-connected digitally and it becomes easier for brands to showcase themselves online. Online path helps brand to educate potential consumers about luxury the products, DS Rawat, secretary general Assocham said while releasing the paper.
With deals or discounts, cash-on-delivery, EMI schemes and easy return policies, online shopping has offered luxury brands a new platform to engage and entice customers, Rawat said.
The major key growth drivers are rising income level which leads to a change in spending patterns and creating good business opportunities in India, reveals the study.
Rawat said earlier only youngsters were experimenting with buying stuff from internet. Now, even the mature customer is also getting accustomed to e-commerce.
With more than 140 million internet users, India is the third largest internet market in the world. The rising middleclass is the biggest driver of the online retail growth. As per the findings, with more than 75 per cent of the internet users under the age of 35, India is one of the world’s youngest internet populations.
E-commerce is expanding the Indian luxury market, as online access and competitive pricing bring hitherto unattainable brands and products within the reach of consumers in the country's lower-tier cities, said Rawat.
According to study, the luxury designer clothing market in India grew 35 per cent to Rs 13,230 crore in 2012 and likely to touch Rs 32,000 crore by the end of 2015. The online market for luxury electronic gadgets is growing at 38.5 per cent, and the luxury jewellery market at 42 per cent.
Indian consumers’ love for luxury brands and these platforms offering them at discounted rates has also led to people taking to the online shopping platforms, the study revealed. (SH)
“Luxury shoppers are well-connected digitally and it becomes easier for brands to showcase themselves online. Online path helps brand to educate potential consumers about luxury the products, DS Rawat, secretary general Assocham said while releasing the paper.
With deals or discounts, cash-on-delivery, EMI schemes and easy return policies, online shopping has offered luxury brands a new platform to engage and entice customers, Rawat said.
The major key growth drivers are rising income level which leads to a change in spending patterns and creating good business opportunities in India, reveals the study.
Rawat said earlier only youngsters were experimenting with buying stuff from internet. Now, even the mature customer is also getting accustomed to e-commerce.
With more than 140 million internet users, India is the third largest internet market in the world. The rising middleclass is the biggest driver of the online retail growth. As per the findings, with more than 75 per cent of the internet users under the age of 35, India is one of the world’s youngest internet populations.
E-commerce is expanding the Indian luxury market, as online access and competitive pricing bring hitherto unattainable brands and products within the reach of consumers in the country's lower-tier cities, said Rawat.
According to study, the luxury designer clothing market in India grew 35 per cent to Rs 13,230 crore in 2012 and likely to touch Rs 32,000 crore by the end of 2015. The online market for luxury electronic gadgets is growing at 38.5 per cent, and the luxury jewellery market at 42 per cent.
Indian consumers’ love for luxury brands and these platforms offering them at discounted rates has also led to people taking to the online shopping platforms, the study revealed. (SH)
Fibre2fashion News Desk - India
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