Every third Internet user in the world is from India, though in terms of the Internet penetration (11.4%), it stands far behind than its developed counterparts (Canada – 83%, the US – 78.1%) as per the Internet World Stats data, 2012. And, according to the Internet and Mobile Association of India (IMAI) and IMRB, by June 2014, India would be ranked second in the world in terms of number of Internet users, only to be trailed by China.
However, when it comes to online retail market growth, the stats don’t favor India. Despite being an epicenter of whopping $900 billion retail industry, only 0.4 percent of transaction is made online. A study by Cushman & Wakefield Research 2007-2012 positioned India at 49th i.e. almost at the bottom mark (which was 50) on the basis of per capita expense made, and at 50th in terms of possession of credit card. However, India flashed a good growth rate of 25.7 percent per annum in the period, above than the overall world online retail sales growth rate of 18.0 percent. Admittedly, the growth potential is there, despite some hurdles often on account of flaws with infrastructure suitability, Internet availability, regulatory compliance, etc. In terms of market size and scale, India performed better than Czech Republic, Hong Kong, Hungary, Colombia, Luxembourg, and many others.
Euromonitor International’s July 2013 research also signaled of bright future of online retail in India. After analyzing the data deduced from different online retail segments including beauty and personal care, apparel, consumer electronics and video games hardware, healthcare, consumer appliances, home care, and more, the company claimed of 30 percent growth in 2012. Dell.com and Myntra.com were the leading players in 2012 with 15% and 6% market share respectively.
Date: February 28, 2014