ecommerce-shopping

The online travel industry accounts for 61% of the Indian ecommerce industry with a share of Rs 76,396 crore out of a market of Rs 125,732 crore , according to a study by the Internet and Mobile Association of India (IAMAI) and IMRB. The online travel industry is expected grow at around 40% to reach Rs 122,815 crore by end of 2016.

Domestic air ticket and railways booking continue to be among top contributors to the Online Travel spends, which were the top contributors in previous year as well. Spend on online railway ticket booking has also grown at around 34%, from Rs 16,200 crore in 2014 to Rs 21,708 crore in 2015.

Hotel Booking has seen a substantial movement in Y-o-Y growth at 165%, from Rs 1965 crore in December 2014 to Rs 5200 crore in December 2015.

online travel

The Indian e-commerce market in India is estimated to reach to Rs 211,005 crore by December 2016, nearly doubling in value from Rs 125,732 crore in December 2015. The study stated the market had increased from Rs 26,263 crore in the year 2010 growing at  30%.

e-commerce market size

It found that online shoppers mostly belong to top eight and small metros. Most of these shoppers fall in the age group 16 to 34 years, predominantly male (around 64%).

Some other highlights from the study:

E-tailing: It maintained a strong performance with a 57% Y-o-Y growth, with Mobile Phone and Mobile accessories, PCs, apparel and footwear continuing to be the dominant categories in this segment. In December 2015 share of e-Tail was 29%.

The apparel and footwear segment is expected to reach Rs 72,639 crore by end of 2016. The sales in this segment recorded a 52% Y-o-Y growth from Rs 4,699 crore in December 2014 to Rs 7,142 crore in December 2015.

e-tailing

Financial services market: The demand for online utility payment is expected to reach Rs 6,068 crore by December 2016. This sector grew at a CAGR of around 17% between 2012 and 201 and reached close to Rs 5,231 crore in terms of transactions as of Dec 2015.

Online Matrimony & Classified market: Demand for this segment is expected to reach Rs 4,277 crore by end of 2016. It has seen a YoY growth of over 100% and stood at Rs 2,592 crore in Dec 2015. The market was around Rs 896 crore in Dec 2014.

Other online service market: Demand for other online services is expected to grow at 36% to reach Rs 5,207 crores by Dec 2016, which includes booking movie tickets and tickets for other events, online commuting or cab hire, online grocery and food deliver. It stood at Rs 3,823 crore in December 2015. The online grocery and online food delivery segments are expected to emerge as big ticket items in the future, according to the study.

other online services

Mode of Payment: Cash on delivery is the most preferred payment method for those who shop online, with payments using a debit card or credit cards following at a distance.  Other modes of payment include Internet Banking and Pre-paid cards. Among those who prefer a digital payment mode, paying using a debit card and net banking are the top modes of payment.

payment method

Look for Information Users: Look for Information (LFI) shoppers are also present in top 8 metros and small metros. Around 29% of these shoppers belong to small metros, equally spread among male and female shoppers.

Apparel is the top most categories that are searched by LFI shoppers with 48% of the shoppers to have looked for information on apparels online of which 18% indicated that they have done a purchase offline. Footwear, Mobile and Accessories and Online tickets are other top products that are searched online and are mostly purchased from offline channels.

LFI

Barriers: A number of reasons stop the LFI segment from buying online. Notable among them is related to touch and feel, as about 28% of them mentioned they would “See the product before they buy them”. Also, shoppers feel that they get to see more variety of the product in a shop and hence they prefer not to shop online. Other key reasons relate to quality and trust as shoppers feel that online products have less credibility and hence cannot be trusted.

Barriers