india ecommerce landscape
TRANSCRIPT
ONLINE SHOPPING DEFINED IN THIS PRESENTATION DOS NOT
INCLUDE TRAVEL, TICKETING & FOOD ORDERING – ONLY
PHYSICAL GOODS COMMERCE
Sources:IAMAIGoogleDelloitteNSSOFacebookCNNICIndustry sourcesComscoreFICCICMRPayUEMVantage
ONLINE SHOPPING OF PHYSICAL GOODS IN INDIA WILL GROW TO $8.5BN IN 2016. NUMBER OF ONLINE SHOPPERS WILL MORE THAN DOUBLE TO 40 MN.
KEY FINDINGS
1. Last year there was a significant jump in average order value as there was a penetration of new categories like jewellery, home décor etc. 2. Also, users are becoming more comfortable buying higher priced items online.
1. Last year was the rise of the fashion category – fashion e-commerce GMV doubled since 2012. 2. Given the young demographic which is shopping for latest looks online and increasing choice online – we estimate that this category will see 400% growth in the next 3 years and rival electronics and mobile category in GMV.
Fashion category doubled last year
Average order values climbing up rapidly
KEY FINDINGS
1. Mobile shopping infrastructure is improving – smartphones, connectivity, mobile websites and apps 2. People are becoming more comfortable in ordering higher priced items online
1. 35% of online GMV in 2016 will be influenced by women 2. Key factor in this growth is increasing supply of women specific categories e.g. jewellery, lingerie, motherhood products
Mobile shopping is seeing phenomenal growth
Women influenced sales will grow 5x in next 3 years
RISE OF EMIS AND WALLETSWith increasing order values, we are seeing an uptick of EMI payments • 3rd party wallets albeit a new phenomenon, have a strong value proposition and will be quick to become popular – similar to China
GROWTH FACTORS
1. Tier 2 cities growing much faster in eCommerce adoption than Tier 1 2. Some states completely lagging in ecommerce, waiting for infrastructure to be put in place
1. Potentially 40M shoppers between ages of 19 – 24 years, will start spending money online 2. These shoppers also have a propensity to spend more money than Gen-X shoppers
More penetration in Tier-II and Tier-III towns
New shoppers will come from the 40M+ Gen-Y FB users
20Mn Gen-
X
20Mn Gen-Y
+
OTHER OBSERVATIONS
1. ~200M of Indians will come online in next 3 years 2. Majority of these will come online on smartphones 3. E-Commerce companies are building their brands, thus gaining trust of users
1. Existing shoppers shop more number of times than new shoppers (in that year) 2. As India’s e-commerce market grows the proportion of existing shoppers will increase from 30% (in 2013) to 50% (in 2016)
WOMEN SHOPPERS A GROWING FORCE
1. Working women segment grew 43% in 2013 and constitutes nearly 10% of Active internet users in India.
2. Categories like baby care, home décor, jewellery etc have traditionally been influenced by women decision makers. As more choice become available more women are shopping online.
YOUNG INDIA WILL BECOME DOMINANT PRESENCE IN ECOMMERCE
Young Indians (19-24yrs) are more comfortable with online services e.g. FB and thus could potentially add upto 40M new shoppers in next 3 years – if we just take the Facebook users
ECOMMERCE FRIENDLY STATES
Top 3 e-commerce states • Delhi-NCR • Karnataka • Maharashtra
Large states with very little ecommerce presence: • Bihar • Uttrakhand • Chhatisgarh
Top 10 cities: 1. Delhi 2. Bangalore 3. Mumbai 4. Pune 5. Hyderabad 6. Chennai 7. Kolkata 8. Ahmedabad 9. Jaipur 10. Panaji
Central & North-Eastern India appears to have low adoption of e-commerce
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