E-commerce in India to hit $100 bn mark from current $35 bn; here is the key
The report titled ‘Propelling India towards global leadership in e-commerce’ further states that e-tail and e-travel will continue to hold over 90 per cent share of e-commerce.
In a great news for Indian e-commerce market, a PwC-National Association of Software Services Companies (NASSCOM) report has claimed that the sector will grow at the rate of 25 per cent over the next five years. This will help the booming e-commerce industry to exceed $100 billion value by 2022. The Indian e-commerce market is currently valued at $35 billion.
The report titled ‘Propelling India towards global leadership in e-commerce’ further states that e-tail and e-travel will continue to hold over 90 per cent share of e-commerce, while online financial services will witness the fastest growth.
The report also said that three out of four online customers are expected to come from tier II markets and beyond.
"A vast majority of them will be relatively less tech-savvy, seek greater transparency from a brand and prefer consuming content in local languages," said the report.
The report also stresses on the need for harmonising the e-commerce policy framework to enable faster growth of the sector.
“There is a gradual shift in the focus of companies and investors alike towards adopting a sustainable economic model centred on the customer. As a result, the industry is seeing a growing focus on customer experience, thereby taking e-commerce beyond just selling things online," said Sandeep Ladda, Partner, Global TMT Tax and India Technology Sector Leader, PwC India.
Ladda also said that the next phase of growth in the sector would come from ensuring a seamless shopping experience, building digital trust, voice-based or conversational commerce and creating an inventory of localised content.
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Debjani Ghosh, President NASSCOM, said that the e-commerce firms need to focus on building loyalty.
"The e-commerce sector has been contributing towards various macroeconomic growth parameters, evangelising local businesses and customers. In the next five years, the sector has the potential to create a million jobs in allied industries such as logistics, warehousing, etc. In addition, the FDI attracted enhances the country’s positioning significantly on the global stage. E-commerce companies have to focus on building loyalty which will translate into repeat sales,” said Ghosh.
India’s middle class will be the largest segment of the Indian population and in the next few years, is likely to consume as much as their Chinese counterparts do today, said the report.
"The consumption pattern of India’s middle class is expected to eventually supersede that of both the United States and China," said the report.