After books, consumer electronics and apparels & fashion, it is the food delivery business which is betting big on the ecommerce boom in the country as we see a number of players entering the Indian market. In 2014, the online food delivery market clocked 40 per cent growth to reach INR 350 crores by end of calendar year 2014, according to a research by Internet and Mobile Association of India.
The study forecasts the food delivery segment to grow at an unprecedented pace on back of immense traction from consumers. The share of online food delivery market is slated at 17 per cent in the overall online services pie in the country, the study added.
On the other hand, online booking for commuting services such as cars and buses has also seen a rapid growth during the year 2014. By December 2014, the online commuting market in India was valued at INR 600 crores.
But the entertainment industry in 2014, took a blow as the share of buying online tickets for movies, sports, show and concerts, etc in the online industry fell to 49 per cent and was valued at INR 990 crores. Meanwhile, the online grocery market garners six per cent of the total online services pie.
Key figures in the study show that other online services market has grown with a compounded annual growth rate of 73 per cent since 2010 and was pegged 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.
The e-tailing category in India has spiked with CAGR of 33 per cent from INR 2,373 crores in 2010 to INR 10,004 croes, three years later in 2013. In another year, the industry grew 1.4 times and breached INR 24,046 crores in December 2014.
The ecommerce revolution in India is riding high on the mobile story and the country is transforming from a mobile-first nation to a mobile-only nation. Affordable mobile handsets and data plans by telecom operators are the largest drivers of increased mobile penetration in the country. IAMAI’s research fount that mobile and mobile phone accessories contribute 41 per cent or INR 9,936 crores to the e-tailing segment followed by apparels, footwear and personal items at 20 per cent or INR 4,699 crores.
Consumer durables along with kitchen appliances followed contributing another 14 per cent or INR 3,404 crores. Out of the remaining 25 per cent of the pie, consumer electronics, home furnishings, and books contribute to another INR 2,780 crores, INR 1,059 crores and INR 648 crores, respectively.
Besides the leading categories in ecommerce, emerging segment that comprise products like deals/coupons, toys, gifts, handicrafts, flowers etc. contribute just about three per cent of the e-tailing pie. Jewellery, cameras, and camera accessories each contribute the lowest to the e-tailing pie.