Post on 12-Jan-2017
transcript
Country profile: IndiaeCommerce on the rise
AU$17.5billion
eCommercemarket
22.7million
population
Despite its large population, India's eCommerce market is only just bigger than
Australia's online market.
AU$24.2billion
eCommercemarket
1.25billion
population
[1]
[2][3]
With 68% of its citizens below the age of 35 years old, India has the largest youth
population in the world.[4]
With eCommerce accounting for less than 1% of retail sales in India, the prospects for growth over the coming
years are very promising. By some predictions, the market could reach $100 billion by 2019.[5]
2015
2019
At just over 27%[6], India's internet penetration is
relatively low, but hundreds of millions of Indians are
set to go online in the coming years.
20
2004
2013
2015
2019
243
350
640(predicted)
Internet users in india (millions)
[7]
[7]
[8]
[9]
Let's look more closely at the Indian consumer
As of August 2015, India has 590 million unique mobile users, or 46% of the population. Of those
users, there are 159 million active mobile internet users, or
12% of the population.[10]
Predicted mobile internet users in india
(millions)
173
2014
2015
2016
2017
2018
2019
232
286
342
399
457
Did you know?
India is the world's third largest
smartphone market after the US and
China, with almost 50% of models
costing under $100.[12]
[11]
Going mobile
In India, less than 5% of digital sales happens on mobile, but 30% of traffic for eCommerce sites come from mobile
and tablets. [12]
Did you know?
11% of Indians have made a purchase via mobile in the past month.[13]
Shopping via mobile
Rise of the ‘rurban’ Indian
Being 'rural in demography' but 'urban in lifestyle' marks the arrival of the 'rurban' class of Indian consumers.[15]
While roughly 1 in 7 people in India live in areas without any mobile reception,[15]
there has been a 600% growth in rural internet subscriptions in the past 3 years.[14]
Active internet users [15]
(millions)
61(7% penetration)
289(76% penetration)
rural urban
India's eCommerce market has four
main players.
They are flush with billions in investment
and poised for growth.[16, 17]
Marketplaces
Flipkart
snapdeal
amazon.in ebay.in
A recent study found eCommerce companies
received the most complaints in India
in 2014.
Problems include:
• delay in delivery• delivery of wrong product • issues with refunds and
replacement • lack of product availability
• trouble with deals and discounts[18]
Customer service issues
Missing and stolen parcels are a persistent problem.[19]
India's size and diversity has resulted in a lack of logistics
infrastructure, with the last mile being particularly difficult.
This has undermined efforts of web-based merchants to build
customer loyalty.[20]
Logistical roadblocks
Many people in India lack credit cards, internet banking services, or a
secure connection, making eCommerce payments
difficult.
This is especially pronounced in rural areas.[21]
Payment problems
Checkout
Pay with Credit
Pay with bank transfer
Informal and traditional retail will continue to
dominate, but eCommerce is on the rise.
Growth is coming from an emerging middle class, the
younger generation and rural consumers. [22]
Supply chain issues are hindering consumer
confidence.
To sum up
The good news? StarTrack is currently exploring ways to help our customers enter
Indian eCommerce marketplaces and achieve best-possible supply chain and
delivery outcomes.
Expanding overseas?
Call StarTrack today on 13 2345
A business of Australia Post
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http://www.gartner.com/newsroom/id/2876517
We Are Social, August 2015http://www.slideshare.net/wearesocialsg/digital-social-mo-bile-in-india-in-2015/3-We_Are_Social_wearesocialsg_wearesocialsgACTIVEINTERNET
WARC 2015, Rise of the rurban Indian
We Are Social, August 2015http://www.slideshare.net/wearesocialsg/digital-social-mo-bile-in-india-in-2015/3-We_Are_Social_wearesocialsg_wearesocialsgACTIVEINTERNET
Times of India, 2015http://timesofindia.indiatimes.com/tech/tech-news/Flip-kart-vs-Snapdeal-The-gloves-are-off/articleshow/48837848.cms
http://www.cnbc.com/2015/07/30/snapdeal-indias-e-com-merce-can-grow-faster-than-china.html
The Economic Times (2015)http://articles.economictimes.indiatimes.com/2015-02-15/news/59166794_1_e-commerce-players-akosha-complaints
Bloomberg, 2014http://www.bloomberg.com/bw/articles/2014-12-11/logis-tics-hold-indias-e-commerce-companies-back
Financial Times, 2014http://www.ft.com/cms/s/0/67706956-640f-11e4-8ade-00144fe-abdc0.html
WARC 2015, Rise of the rurban Indian
WARC, 2013.
CIA World Fact Book, July 2015
Statista, 2015http://www.statista.com/topics/2454/e-commerce-in-india/
NAB Online Retail Sales Index http://business.nab.com.au/tag/online-retail-sales-index/
WARC, 2013
Times of Indiahttp://timesofindia.indiatimes.com/tech/tech-news/Indi-an-ecommerce-industry-to-post-35-growth-Study/articleshow/48843725.cms
PwC, eCommerce in India: accelerating growth, 2015 http://www.pwc.in/assets/pdfs/publications/2015/ecom-merce-in-india-accelerating-growth.pdf
Economic Times, 2015http://articles.economictimes.indiatimes.com/2015-09-03/news/66178659_1_user-base-iamai-internet-and-mobile-association
Next Big What, 2015 http://www.nextbigwhat.com/internet-industry-data-india-297/
We Are Social, August 2015 http://www.slideshare.net/wearesocialsg/digital-social-mo-bile-in-india-in-2015/3-We_Are_Social_wearesocialsg_wearesocialsgACTIVEINTERNET
KPMG India
IDC 2015 http://www.idc.com/getdoc.jsp?containerId=prSG25827215
References
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