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3 things to know about India's digital commerce growth story


A few years back, shopping online in India was looked at with much apprehension. Only a select few, excited enough to give it a try, became the early movers to digital commerce. We've come a long way since then.

Growth of Digital CommerceToday digital commerce is the new normal. Everything from buying an airplane ticket to a travel bag for the same journey today can and does happen online. With the consumer getting more comfortable transacting online, digital commerce has seen a massive growth in the last few years.

Online travel bookings set the ball rolling
According to an IAMAI report, has registered an average growth of 35% since 2010. Between December 2013 and December 2014 this market grew 53% from USD 8.38 Billion to USD 12.8 Billion respectively. It is further estimated to reach USD 15 Billion by 2015, growing by 33%.

Much of this growth was driven by online travel bookings which made up for 61% of the Indian digital commerce market in 2014. E-tailing which includes books, apparels, footwear, jewelry and other such as home & kitchen appliances, consumer durables, electronics (mobile phones/computers/laptops) and home furnishings, contributed to 29% of this market.

Growth of E-tailing IndustryE-tailing the next big growth driver
An interesting trend to note however, is that online travel bookings which take the largest piece of the digital commerce market only grew by 19% in 2014. As opposed to this, E-tailing grew by whopping a 140% in the same year. E-tailing has gained immense popularity among Indian consumers because it not only made shopping easier for them, the option to make a payment in cash on delivery, made it easier for consumers to move to adopt E-tailing.

This is also evident from the report findings which suggest that 45% of consumers shopping online prefer cash on delivery, followed by 21% who prefer debit cards and 16% preferring credit cards. Other modes of payment include internet banking (10%) and prepaid cash cards, mobile wallets (8%).

More purchases via mobile
Consumers are increasingly preferring to purchase via mobile. In fact, 40% of digital commerce purchases in India came from mobile phones. WIth much of their digital lives revolving around a smartphone, consumers have also started transacting via their smartphones. Digital commerce companies recognize this trend and have amped up their focus on mobile, offering a mobile-first experience for their services.

As consumers get more comfortable with mobile and digital commerce companies works towards on making their purchase journey on mobile more seamless and convenient, digital commerce will see a further growth momentum in the days to come.

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