E commerce in India

Abstract

In this section, we would like to focus on internet penetration in India, e commerce market sizeand other indicators of ecommerce growth like number of unique visitors to a website,etc. Theinternet penetration in India is 10%. But it is very less when compared to other countries likeFrance whose internet penetration is 70%. Even though the penetration percentage is higherthe number of users in India is higher when compared to France. This can be attributed tohigher population in India. The number of internet users is 124 million in India and 40 million inFrance. Refer Annexure 1 for comparison of e-commerce penetration between India andFrance.The e commerce market in India is 1.6 billion USD. It represents only a fraction of France’smarket which is 37.7 billion USD. In India, ecommerce is still in development phase. Accordingto Forrestor’s forecasts, e commerce will grow at a rate of 57% over next five years in India.This will drive online retail revenues to 8.8 billion USD by 2016. India’s e-Commerce market isvery much dominated by sales of consumer electronics and software — these two categorieswill comprise the majority of online sales over the next five years. The comparison betweenIndian and French market size is shown in annexure 2.The number of unique visitors to Ecommerce websites in India is 37.5 million. It is more thanthe number of unique visitors in France. But when this number is compared to the individualcountry’s population, the percentage of unique visitors in India is less.The number of unique visitors to top ecommerce websites in India i.e. Amazon, Flipkart,Snapdeal, Jabong, Myntra and Homeshop18 is shown below.