India have gone past Japan to become the world’s third largest internet user, only trailing China and United States, reports comScore.
India is also the second fastest growing internet population, only behind Brazil. India have now 74 million internet users, a 31% increase since March 2012. ComScore also reports that the mobile and tablet internet traffic contributes 14% to the overall internet traffic in India.
Three forth of India’s internet population falls under the age 35, against just half worldwide. However, women contributes less than 40% of the overall internet population, which is low compared to global standards. Women in the age group 35-45 are heavy users, while men under 35 are.
Google, by far, is the favorite search engine in India, with 90% of the overall searches. Obviously Google is the most visited website in India followed by Facebook. Wikipedia, Microsoft and Yahoo are the other favorite sites.
25% of the time is spent on social media sites, whereas email takes 23% of the time. LinkedIn and Twitter are the most favorite social media websites behind Facebook and the once most loved social network in India – Orkut, apparently is on the decline.
The $2 billion Indian ecommerce industry is still struggling to be profitable, but the investors are quite upbeat about its future and continues to invest more money, eyeing long term growth.
Within the first four months in 2014, Investors (PE & VC) have already put in $141 million, which is almost half of last year’s investment of $295 million, according to research firm Venture Intelligence.
The $150 million investment received by Flipkart from various investors formed the lion-share of last year investments in the ecommerce industry.
$50 million by Kalaari capital Nexus Ventures, Samaa Capital and others in marketplace ecommerce firm Snapdeal, $14 million by Sequoia Capital India and Intel Capital in Health are some the major investments in 2013.
“The PE investment in brick-and-mortar retail has failed. Brands are also realizing that e-commerce is a better way to penetrate into the tier-II and tier-III cities as building the physical infrastructure is never going to be profitable,” says Arun Natarajan, CEO, Venture Intelligence.
eBay India released its 5th annual census guide on Wednesday, unveiling the key trends in ecommerce from its Indian website.
According to the report, the website has witnessed 30 per cent growth in the eCommerce hubs that went up to 4,306 cities and towns spanning across 28 states and 7 union territories from 3,300 last year.
The company also stated that this year’s growth is over 70 per cent of what was in 2008. Of this figure, over 3,281 towns belong to tier II, III and IV cities.
The Census 2012 also stated that the 5 states with the most transactions were Maharashtra, Delhi, Rajasthan, Tamil Nadu and Karnataka. However, the city on the top was Delhi followed by Mumbai, Jaipur, Bengaluru and Chennai.
Surprisingly, the top rural hubs were Guntur (AP), Choryasi (GJ), Kartikapali (KL), Villupuram (TN) and Dindori (MH).
According to the report, 48 per cent of the total transactions belonged to electronics while 41 per cent was from lifestyle that consisted apparel, shoes, handbag, sports equipments, kitchen, etc. Read more
E-tailers throughout India are offering deals on makeovers, wardrobes and home deliveries this festival season. As part of an effort to drive up sales, many sites are giving away bonus products along with regular items.
Members-only site Fashion and You is launching a 15-day campaign in which its three biggest spending customers will receive home-improvement products valued at up to Rs 50,000. According to Director of Sales Aasheesh Mediratta, 40 percent of the site’s profits are driven by 20 percent of its customers, but the latest sale is intended to drive that 20 percent up to 40.
Another deal currently going on at Fashion and You is a month-long promotion known as the “Festival of Indulgence,” where the number one shopper can win a golden necklace valued at Rs 3 lakh. The festival commenced in mid-October and will run through the 16thof November. Read more
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Companies in India’s ecommerce sector face significant challenges to growth, according to a report from MSLGROUP India.
The Publicis-owned agency’s new report, E-commerce in India: Evolution, Growth and Challenges, suggest that several factors, including a shared scepticism among Indians about paying for goods online, slow delivery times, state bureaucracy, inefficient inventory management and cyber-crime could all prove problematic.
“Establishing trust and winning confidence isn’t easy,” the MSLGROUP report added. “Brick and mortar stores tend to be more trusted. Ecommerce firms will have to work hard to gain consumers’ trust.” Read more
The domestic e-commerce market has the potential to grow between $125 billion and $260 billion by 2024-25, according to an industry report.
The report, ‘E-commerce: A boon for the current economic downturn’ by First Data Corporation and ICICI Merchant Services, says urban Indian consumers are now confident enough to make online purchases of up to Rs 25,000, from Rs 2,000-5,000 in the recent past.
“With different levels of adoption, the e-commerce market has the potential to grow anywhere between $70 billion and $150 billion under one scenario, and at a more robust growth scenario it can grow between $125 billion and $260 billion by 2024-25,” it says. Read more
Online retailers like Amazon and Flipkart are stepping up their activities in India, in just one sign of the category’s increasingly rapid development.
A recent report sponsored by IAMAI, the government agency, stated India’s web audience stood at 120m people at the close of 2011, a reach of roughly 10%, meaning considerable room for growth remains.
The latest figures from IAMAI also suggested that 10m people in India now buy goods on the net and pegged ecommerce revenues at Rs46,520 crore ($9.4bn) last year, a 47% annual improvement.
“Nobody knows exactly how fast it will grow, but access to the internet is changing so quickly, and internet retail will definitely be significant in the next five years,” Raghav Gupta, a principal at Booz & Co, told the Financial Times.
Flipkart is the biggest player in India’s ecommerce segment, and anticipates that its sales should near Rs600 crore in the 2011/12 fiscal year, rising to a forecast Rs5,000 crore in the next two or three years. Read more