Zinnov has released a study to evaluate the e-commerce industry in India, titled ‘Indian e-commerce industry: riding on high tides’ which covers market conditions and sentiments that drove e-commerce industry in India over the years and predictions on the trends moving forward. The study pegged that the E-commerce industry is largely dependent on growing adoption of smartphones, increased internet users and favored demographic population. It also revealed that 83% of the current e-commerce users in India forecast increase in online shopping.
Praveen Bhadada, Director-Market Expansion, Zinnov, said, “E-commerce has experienced stupendous growth in recent times in India and we do not see this growth slowing down anytime in the near future. Scale is certainly necessary to survive in this business and India presents that scale to anyone who is serious about this business. While online travel grew rapidly in the last 5 years, the next 5 years will see e-tailing to outpace online travel market in India.”
According to the report, E-tailing is growing tremendously and will account for~50% of the e-commerce by 2015 as compared to the current 22%. The report also noted that FY11 witnessed significant VC investments of over USD 900 Million in the sector which represents a growth of over 800% since 2008.
The survey also noted that mobile and social media platforms will play a key role in driving the growth of the Indian e-commerce industry. The findings reveal that brand recall is a major factor for decision making and therefore, e-commerce companies are aggressively investing into mass media for brand building.
