You could shop-till-you-drop… but why do that when you could shop from the comfort of your own home, finding the perfect item on your computer or mobile device? Consumers are increasingly embracing e-shopping, with global opportunities in the online retail sector exploding in the last couple of years. And India is set to be the next major player in the e-commerce scene.
India’s Internet Market
India is better known for bustling bazaars and colorful open-air markets, but in just five years the Indian e-commerce market has grown over 600%, from $2.5 billion USD in 2009 to an incredible $16 billion USD last year. This exciting trend is expected to continue, with research from the Associated Chambers of Commerce and Industry of India (ASSOCHAM) indicating that the Indian e-commerce market is projected to reach a value of $56 billion over the next decade.
This kind of hyper-growth shows that India’s e-commerce market is still in its infancy – online retail is currently only 1% of the country’s retail market. Travel is the most popular e-commerce sector, accounting for about 70% of online purchases. Consumer goods, particularly fashion and electronics, are a close second.
The People Behind the Purchases
India’s demographics are another aspect of India’s e-commerce revolution. Around 450 million people in India are between ages 15-34, which is a high proportion of working-age individuals in comparison to dependants (children and seniors). This trend will continue, with a report by the IRIS Knowledge Foundation and UN-HABITAT estimating that by 2020, 64% of India’s population will be in the working age group, making it the world’s youngest country. This allows for more disposable income to be directed to the online retail sector, and survey data shows that young Indians are spending about 16% of their disposable income on e-commerce.
Adoption of Technology
A report from the Internet and Mobile Association of India (IAMAI) shows that India had 213 million internet users at the end of last year – a number that is expected to grow to 243 million by this June. This increase would make India a global leader in internet usage, second only to China’s 600 million internet users.
Right now, India’s internet users are not all that active, but an increase in logins is expected to accompany the sharp rise in smartphone and tablet usage. In 2013, the sale of smartphones grew by 180%. Along with this rise in devices, Indian users can look forward to expanded 3G and 4G broadband coverage, making it even more convenient to shop on-the-go.
Shop Safe With Payza
The future of buying is online, and the future of online buying is alternative payment methods. A great way to increase the safety of your online transactions is to make your purchases through trusted payment processors like Payza, which offer a safer and easier way to pay. Unlike traditional methods, payment processors such as Payza allow you to make online purchases while keeping your personal information private. If you want to send and receive money online, open your free Payza account today.