By A Correspondent
The Digital Commerce Market has grown at a CAGR of 30%, between December 2011 and December 2015 and was valued at Rs 125,732 crores by the end of December 2015. It is estimated to reach Rs 211,005 crores by December 2016, according to the Digital Commerce Report 2015, published by the Internet and Mobile Association of India (IAMAI) and IMRB today.
The report finds that Online travel industry continues to grow strongly with 61% share while share of online non-travel has improved over the previous year to reach 39%. In December 2015 share of e-Tail was 29%. Mobile Phone and Accessories, PCs and Apparel and Footwear continue to be the dominant categories that are selling within the e-tail segment. According to Nilotpal Chakravarti, AVP -IAMAI, “The growth trajectory of digital commerce signifies the coming of age of online transactions in India. No longer Indians are wary of transacting online. Another notable facet of the report is the substantial growth in non travel online transactions.”
Domestic air ticket and railways booking continue to be among top contributors to the Online Travel spends. These were the segments that were the top contributors in previous year also. Hotel Booking has seen a substantial movement in Y-o-Y growth at 165%, from Rs 1965 crores in December 2014 to Rs 5200 crores in December 2015. Spend on online railway ticket booking has also grown at around 34%, from Rs 16200 crores in 2014 to Rs 21708 crores in 2015. Online travel is expected to grow at a CAGR of around 40% to reach Rs 122815 crores by end of 2016.
The report also finds that E-Tailing maintained a strong performance with a 57% Y-o-Y growth. Among E-Tail categories, Mobile Phone and Mobile Accessories continue to be the top contributor to the overall pie. Given that there is an increased demand for Smartphones in India, this could be a contributing factor. Computer and consumer electronics, as well as apparel and accessories, account for the bulk of India retail ecommerce spends contributing close to 49% collectively to overall spend in E-Tail segment. Apparel and Footwear sale has almost doubled as compared to the previous year, recording a 52% Y-o-Y growth from Rs 4699 crores in December 2014 to Rs 7142 crores in December 2015. This segment is expected to gain further momentum and reach Rs 72639 crores by end of 2016.
|
Component share of E Tail (Rs 37,689 CR) |
||
| Mobile Phones + Mobile Accessories |
14,109 |
37% |
| Apparels + Footwear + Personal / Healthcare Accessories |
7,142 |
19% |
| Consumer Durables + Kitchen Appliances |
6,452 |
17% |
| Laptops / Net books / Tablets / Desktops |
4,726 |
13% |
| Home Furnishings |
1,468 |
4% |
| Jewellery |
1,120 |
3% |
| Other Products (Vouchers / Coupons, Toys, Gifts, Flowers, Handicrafts, Stationary etc.) |
994 |
3% |
| Books |
875 |
2% |
| Cameras + Camera Accessories |
803 |
2% |
According to the report, Financial services market grew at a CAGR of around 17% between 2012 and 2015. The market reached close to Rs 5231 crores in terms of transactions as of Dec’15. The demand for online utility payment is expected to reach Rs 6068 crores by Dec’2016.
Other online service market that includes booking movie tickets and tickets for other events, online commuting or cab hire, online grocery and food deliver, was Rs 3823 crores in Dec’2015. In December 2014 the market was around Rs 2025 crores. In future online grocery and online food delivery are expected to emerge as big ticket items. Demand for other online service is expected to grow at a CAGR of 36% to reach Rs 5207 crores by December 2016.