January 27, 2017
Mobile commerce in India is likely to jump to 45-50% in 2017
The potential and the growth rate of the Indian Mobile Commerce market hints at an exciting future ahead. The market size is about 3% of the US non-store retailers sales ($560 billion). In the US, the nonstore retailers are growing at the rate of 13.2 %. Currently, online sales in India is dominated only in the metros. As of 2015, smartphone users in India was at 220 million, growing at 23%. It is predicted that by 2017 India will overtake the US as the second largest market for smartphones, after China. Mr. Nitin Gadkari, Minister of Road Transport and Highways, and Shipping announced in January 2017 that the Government of India would be investing US$75.30 billion for the road, railway and port connectivity projects. With better infrastructure and continued smartphone adoption, one can expect online shopping in India to grow at the current rate if not better.
The number of consumers who purchase online is expected to cross 100 million by the end of 2017, with the e-retail market likely to jump 65% year on year in 2018, a recent research study reveals. By the end of 2018, Indian e-retail is expected to touch USD 17.52 billion. Mobile commerce is likely to jump to 45-50% in 2017 to the current 30-35% of e-commerce sales. The report also laid out challenges for e-commerce in India including an absence of e-commerce laws, low entry barriers leading to reduced competitive advantages, rapidly changing business models, urban phenomenon, shortage of manpower and customer loyalty. Demonetisation and a reduction in cash transactions, along with an improvement of net banking facilities, can be opportunities for the Indian e-commerce sector, according to stats made public by an ASSOCHAM-Resurgent India study, Indiatimes.com reports.
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