Digital commerce is emerging in India in a big way with brands, advertisers and publishers engaging themselves in the digital space left, right and centre. Online platform top the chart as the most preferred means of sales. The digital commerce market was valued at INR 81,525 crores by the end of December 2014, and registered a growth of 53 per cent over 2013.
Going forward in 2015, the digital commerce industry is expected to rise 33 per cent and breach the INR 1 Lakh crore-mark by the end of 2015, according to the Digital Commerce Report by IAMAI and IMRB International.
Online travel with 61 per cent contribution forms the lion’s share of the whole digital commerce pie, the report added. Moreover, e-tailing has also grown by around 1.4 times over 2013 and constitute nearly 29 per cent of the overall share.
In the e-tailing segment, mobiles and mobile phone accessories contribute the most, i.e., 41 per cent or INR 9,936 crores. This is followed by apparels, footwear and personal items which contribute 20 per cent or INR 4,699 crores.
Besides mobile and fashion, e-tailers have seen traction in consumer durables with Kitchen appliances contributing 14 per cent i.e. INR 3,404 crores and out of the remaining 25 per cent, Laptops/Net Books/Tablets, Home Furnishings and Books contribute another INR 2,780 crores, INR 1,059 crores and INR 648 crores, respectively.
The report has also evaluated the bifurcation in the modes of payment used by the e-consumers. Cash on Delivery has emerged to be the most popular form of payment with 45 per cent vote followed by 21 per cent and 16 per cent for debit card and credit card, respectively. The other modes of payment include Internet Banking i.e. 10 per cent and prepaid cash cards and mobile wallets at 8 per cent.
According to the report, the financial services market has grown at a compounded annual growth rate of 20 per cent since 2010. In December 2014, this market was valued at INR 4,508 crores. Also, the classifieds markets have seen a significant growth and are valued at INR 896 crores by December 2014.
Other online services market has grown with a 73 per cent compounded annual growth rate since 2010 and was valued at INR 2,025 crores by December 2014. This segment includes emerging service categories like online entertainment ticketing, online commuting, online food and grocery delivery. Online Food Delivery market has seen the maximum growth of 40 per cent over the last year in this segment and it is now valued at INR 350 crores by the end of 2014.
On back of growth in digital commerce, India has seen the emergence of several categories such as online ticketing, food and grocery and jewellery which were earlier attributed as dark areas in the online space. With further technological advancements and innovation we can expect these categories registering impressive growth numbers in the coming year.