New Delhi: India's e-commerce revenue is expected to jump from USD 30 billion (approx Rs 1,450 billion) in 2016 to USD 120 billion (approx Rs 8 lakh crore) in 2020, growing at an annual rate of 51 per cent, making it the fastest growing online market in the world, a joint ASSOCHAM-Forrester report has said.
The increase would be mainly on the back of young demographic profile, rising Internet penetration and relatively better economic performance, the study said.
Although in terms of growth, India may be lower than China and other giants like Japan but the Indian rate of growth is ahead of others. “Against India's annual expansion of 51 per cent, China's e-commerce is growing at 18 per cent, Japan 11 per cent and South Korea 10 per cent,” the study said.
The report further said that India has an Internet user base of 400 million in 2016 whereas Brazil has 210 million Internet users and Russia 130 million, among the BRICS nations.
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About 75 per cent of the country's online users are in the age group of 15-34 years since India is one of the youngest demographies globally and one out of every 5 (online user) visits the Indian Railways site, the report said.
Online travel has seen growth across all subcategories including car rentals, airlines, hotels and travel review and information sites. The top 10 sites among the travel category show a good mix of travel options as well as information.
Also according to report apparel has been the fastest growing subcategory in retail and reaches 24% online users.
In India, about 60-65 per cent of the total e-commerce sales are being generated through smart phones. Branded apparel, accessories, jewellery, gifts, footwear are among the major hits on the e-commerce platforms, it added.
