India's 220 million internet population isn't trawling the web for bargains alone. And, contrary to conventional wisdom, they aren't buying only electronic products on the web. If Snapdeal, for instance, is selling a television set every 20 seconds and a mobile phone every 12 seconds, it is also selling a sari every 20 seconds and four pairs of shoes every 30 seconds.
Such trends in online shopping give Goldman Sachs the conviction that India's e-commerce market could grow 15 times to $300 billion in 15 years. As e-commerce is relatively nascent in India, consumer behaviour is still evolving and this is helping virtual marketplaces introduce new categories and verticals.
Ankit Nagori, chief business officer, Flipkart, says online shopping is no longer limited to apparel, footwear, accessories or low-value items. So, while city dwellers are looking at high-value items such as mobile phones and laptops, consumers in Tier-II and Tier-III towns are still test-driving in the online universe with low-value items such as kitchenware and home decor.
By value, however, electronic goods still account for a large portion of gross merchandise, as bargain-hunting Indians are buying high-ticket items such as mobile phones and laptops online. Today, one in every five mobile phones is sold online. Kiran Kumar of IDC believes the contribution of online commerce to overall smartphone sales has gradually risen to about 20 per cent. This is because of the advantages of time to market, scale, more control on the supply chain, and reduced costs, compared to physical distribution, he says.
India's shopping habits also reveal the level of affluence, as well as brand preferences of consumers.
| Business Standard Mobile Website
Such trends in online shopping give Goldman Sachs the conviction that India's e-commerce market could grow 15 times to $300 billion in 15 years. As e-commerce is relatively nascent in India, consumer behaviour is still evolving and this is helping virtual marketplaces introduce new categories and verticals.
Ankit Nagori, chief business officer, Flipkart, says online shopping is no longer limited to apparel, footwear, accessories or low-value items. So, while city dwellers are looking at high-value items such as mobile phones and laptops, consumers in Tier-II and Tier-III towns are still test-driving in the online universe with low-value items such as kitchenware and home decor.
By value, however, electronic goods still account for a large portion of gross merchandise, as bargain-hunting Indians are buying high-ticket items such as mobile phones and laptops online. Today, one in every five mobile phones is sold online. Kiran Kumar of IDC believes the contribution of online commerce to overall smartphone sales has gradually risen to about 20 per cent. This is because of the advantages of time to market, scale, more control on the supply chain, and reduced costs, compared to physical distribution, he says.
India's shopping habits also reveal the level of affluence, as well as brand preferences of consumers.
| Business Standard Mobile Website
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