Online retail revenues in India to grow to $60 billion in 2017: Report
Retailers today need to be omnipresent as a large portion of buyers today begin their journey in the buying process online and may end up buying offline or vice versa.
- Revenue generated from online retail is projected to grow to $60 billion
- By 2020 the revenue generated through online retail is forecast to grow to $70 billion
- The size of modern retail in India is expected to double from Rs 87,100 crore
Online retail is expected to drive the growth in e-commerce companies as well as get footfalls to the physical stores. The revenue generated from online retail is projected to grow to $60 billion (about Rs 3.86 lakh crore) in 2017, according to a recent report by Retailers Association of India (RAI) and digital marketing agency ValueFirst.
By 2020 the revenue generated through online retail is forecast to grow to $70 billion (about Rs 4.51 lakh crore).
The size of modern retail in India is expected to double from Rs 87,100 crore ($13 billion) to Rs 1.71 lakh crore ($25.7 billion) in three years which is driven by omni channel retail.
The report further says that cross channel presence from offline to online is a reason why retailers need to be on both platforms.
“What is changing today is the cross channel presence where shopper behavior is driven by technology and thus online presence for retailer has become extremely important to attract multiple user personas,” the report said.
Six out of 10 internet users start shopping on one device but continue to finish on a different one, and 82% of smartphone users say they consult their phones on purchases they're about to make in a store, it added.
However, it seems that even offline retailers seem to be giving importance to online digital marketing than traditional mediums. “With digital being the new currency in the industry, online presence has ranked first on their priority list,” said the report.
In terms of marketing, the importance of email marketing seems have grown for retailers as 85% retailers agreed that email gave them better consumer engagement and is important for them. While 94% retailers embraced mobile as a part of their marketing strategy.
When it comes to social media marketing, 93% of the respondents use at least one of the social media platforms, said the report. Facebook seems to be the most popular one among retailers.
It further said that 61% marketers have shown an accumulated interest in social media promotions. This was majorly for online retail operators.