Growth of E-commerce industry in India

                               Growth of E-commerce industry in India

       As the dot com technology has taken a toll of the entire globe, internet has also provided a huge platform for many to achieve their entrepreneurial dreams.

      To start a web based business all you need is a brilliant and unique idea, your personal computer and just minimum investment. There are many internet based companies that have been started and also been huge hit. People also prefer to shop and use products of these e-commerce companies as they are easily accessible over the net and also provide door to door delivery.

  

   These e-commerce companies also provide many facilities like cash on delivery, free shipping and also return policies if the customer is not happy with the product.

 India is a lucrative (profitable) land that is being eyed by investors from across the globe. As Business India puts forth, the booming industries in the subcontinent include IT Information Technology, Telecom, Healthcare, Infrastructure and e-Retail. While the rest have been in the race for quite a while now, e-commerce has come out with flying colors despite being new. 

Key drivers in Indian e-commerce are:

• Increasing broadband Internet and 3G penetration and now 4G as well.
• Rising standards of living    
• Availability of much wider product range .
• Busy lifestyles, urban traffic congestion and lack of time for offline shopping
• Lower prices compared to brick and mortar retail driven by disintermediation and reduced inventory and real estate costs.
• Increased usage of online classified sites, with more consumer buying and selling second-hand goods. 

Revenue:                                                                                                                         As more and more Indians use the internet, revenues of e-commerce companiescould triple over the next three years to 504 billion rupees           ($8.13 billion), according to Crisil Research, a unit of Mumbai-based ratings firm Crisil Ltd.

Online retail companies earned revenues of around 139 billion rupees     ($2.24 billion) in the financial year that ended on March 31, 2013, according to the Crisil report. Though this is just 0.5% of the total revenues of brick-and-mortar retail companies, online retail sales have been growing much faster

Revenue of e-commerce firms grew by 56% annually between the financial year that ended March 31, 2008, and the year ended March 31, 2013, according to Crisil

Users:                                                                                                                               There are around 200 million internet users in India currently and the number could grow to 500 million by 2015, according to consulting firm McKinsey & Co.

E-commerce market:

           India’s e-commerce market is on a rise. Statistics reveal that by the end of this year, 44 percent of the Indian households will have access to the Internet. This clearly translates to a bigger market for e-commerce. This change is also going to affect related markets in a big way like the supply, logistics and advertising. Advertising in particular will be playing a huge role in facilitating the e-commerce growth by educating people about brands and assisting them in buying not only through e-stores but also their brick and mortar outlets. 

"Over the last few years, dozens of websites have been launched in India to sell everything from books and appliances, to baby care products and flight tickets."

"The scope for growth in this sector has already attracted a lot of interest from venture capital investors."

"India will become one of the 10 largest ad markets ascending from its current 14th position. It’s expected to grow by 39 percent year ending 2016."

"As the technology improving day by day our level of standard is also improving and in fact at a greater speed. This growth in e commerce industry will lead to a great impact on the Indian economy in near future."