E-commerce in today’s modernized world
India continues to be an underdeveloped retail E-commerce market, with digital commerce accounting for only a small section of the country’s total retail sales. However, major escalation is expected in the coming years as increasing numbers of consumers go online for the first time, largely through smart phones, as explored in “India Retail E-commerce 2016: The Relentless Rise in Mobile Sales” report. The Welingkar Hybrid PGDM offers a specialization in E-commerce for the ones interested in studying this further.
In terms of base, India may be lower than giants like China and Japan, the rate of growth is way ahead of others. Against India’s annual expansion of 51%, China’s e-commerce is growing at 18%, Japan 11% and South Korea 10%.
Even within the BRICS nations, India is ahead of countries like Brazil and Russia with yearly additions of 25 million internet users. India has an Internet user base of 400 million in 2016 whereas Brazil has 210 million internet users and Russia has 130 million of internet users.
Growth comparison within India
About 75% of online users are in the age group of 15-34 years since India is one of the youngest demography internationally. “This is expected to be a continuing trend in the coming years, considering the age distribution in India. It is not surprising to see the growth among categories focused on younger audiences in the last 12 months”, said D S Rawat, ASSOCHAM Secretary General. Comprising of both males and females, the maximum number of online shoppers are of 15-24 years of age. The Hybrid PGDM at Welingkar allows the students to study E-commerce well and create a difference.
Online travel including car rentals, airlines, hotels and travel review and information sites has seen growth in all categories. The top 10 sites are well developed as they show a good blend of travel options and the required data too. Users are searching for updates and data on travel options on a regular basis, with railways being the largest searched target. One out of every 5 online users in India visits the Indian Railways site on an average.
Retail category penetration has increased to 65 million unique visitors a month registering an annual growth of 55%. The growth is seen across all retail categories and most of them show promising transactions and conversion rates including the growth in visitors. A subcategory in retail is apparel, which is fastest growing and reaches 24% online users. Increasing internet and mobile penetration, growing acceptability of online payments and favorable demographics has provided the e-commerce sector in India the unique opportunity for companies to connect with their customers.
Branded apparel, accessories, jewelry, gifts, footwear are among the major lifestyle categories in e-commerce shopping, which is moving up fast on the mobile phones applications. India grows and Welingkar courses encourage this growth by offering students with a specialization in E-commerce thus contributing to the difference.
In India, 60-65% of the total e-commerce sales are being generated by mobile devices and tablets. Shopping online through smart phones is turning out to be a game changer, and industry leaders believe that m-commerce could contribute up to 70% of their e-commerce revenues.