INDIA
ECOMMERCE IN INDIA IS
PROJECTED TO BE THE LARGEST
AND MOST PROFITABLE NEW
1
BUSINESS STARTUP IN INDIA.
THE INDIAN ECOMMERCE MARKET
SCALE WAS EVALUATED AROUND
$16 BILLION IN 2013, AND IS
EXPECTED TO REACH $56 BILLION
BY THE FALL OF 2023.1
1
INDIA ECONOMY
http://www.fatbit.com/fab/stats-figures-facts-learn-glorious-indian-ecommerce-growth
‡ PROJECTED
MARKET SIZE // Current and Projected Growth
Despite challenges to economic growth consistent with an emerging economy,
online retail spending in India grew by 67% in 2013, and is projected to grow at a
compound annual growth rate (CAGR) of more than 50% between 2013 and 2017
as more customers start purchasing goods online.2
2
1
MARKET SIZE
Forrester Research Inc. India Online Retail Forecast, February 2014 – excludes travel.
http://www.forrester.com/India+Online+Retail+Forecast+2013+To+2018/fulltext/-/E-RES114981
*VALUES IN $USD BILLIONS PER YEAR // ‡ PROJECTED
$231
$52
$17
$15
$12
$110
$345
$78
$27
$25
$30
$356
BRAZIL
RUSSIA
INDIA
CHINA
USA
UK
2012 2016
eMarketer, February 2013. Includes travel, digital downloads, events, excel gambling.
3
PRODUCT CATEGORIES
BY ORDER VOLUME4
1.9 %
1.4 %
0.7%
0.6%
2.2 %
2.2 %
APPAREL
MEDIA, TOYS
& GAMES
HEALTH CARE
MEDIA
CONSUMER
ELECTRONICS
OTHER
eMarketer, February 2013. Includes travel, digital downloads, events, excel gambling.
4
LOCAL SNAPSHOT
BEHAVIOR STATISTICS
OF ONLINE USERS BUY PRODUCTS
EXCLUSIVELY VIA SOCIAL MEDIA.5,7
The Taj Mahal (located in Agra, Uttar Pradesh) stands 561’ tall, took 20,000
workers 22 years, 1,000 elephants hauling materials from all over India
and Asia, 28 varieties of precious gemstones to decorate its inlays, and
cost the Mughal emperor Shah Jahan 32 million rupees to build in 1653
— over $1b in US currency today.6
PWC- 2013 Shoppers at a Glance; http://goo.gl/SWTqg9
http://www.tajmahal.org.uk/taj-mahal-facts.html
7
http://www.fatbit.com/fab/stats-figures-facts-learn-glorious-indian-ecommerce-growth
5
6
INDIA CULTURE
CONSIDERATIONS
INDIA HAS THE SECOND LARGEST
POPULATION IN THE WORLD, AND
IS THE SEVENTH LARGEST COUNTRY
8,9,10,11
BY GEOGRAPHICAL AREA.
‡
*BILLION PEOPLE, July 2014 est.9
LARGEST POPULATION IS
CHINA, AT 1,392,472,656.9‡
INDIA’S POPULATION WILL
SURPASS CHINA BY 2028,
WHEN BOTH INDIA AND CHINA
WILL HAVE POPULATIONS OF
OVER 1.45 BILLION.9,10,11
18-24 year-olds are a key economic force
behind India’s recent ecommerce boom.
Already a major factor behind the growth
of the economy, they are expected to
represent 64% of the population by 2020.12
http://censusindia.gov.in/
http://worldpopulationreview.com/countries/india-population;
10
http://www.todayonline.com/world/asia/india-population-overtake-china-2028
11
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2119rank.html
12
http://www.fatbit.com/fab/stats-figures-facts-learn-glorious-indian-ecommerce-growth/
8
9
COMMERCE EXPERIENCE
SOCIAL MEDIA
INDIA’S THE THIRD-LARGEST GLOBAL
FACEBOOK AUDIENCE POPULATION
13,14
BEHIND USA AND BRAZIL.*
*BASED ON PERCENT OF ACTUAL USERS FROM TOTAL POPULATION.
45.6%14
(58m users from
BRAZIL 2012 pop:
193,946,886).
78.1%14
(166m users from
USA 2012 pop:
313,847,465).
DESPITE HAVING MORE PEOPLE THAN
EITHER US OR BRAZIL, INDIA’S ACTUAL
FACEBOOK USERS ACCOUNT FOR A
SMALL PART OF THE 1.2 BILLION
POPULATION. HOWEVER, KEY USERS
ARE 18-24, THE LARGEST, AND FASTEST
GROWING POPULATION SEGMENT.13,14,15,16
11.4%14
(63m users from
INDIA 2012 pop:
1,205,073,612).*
*100m in 2014
*projected16
http://www.fatbit.com/fab/stats-figures-facts-learn-glorious-indian-ecommerce-growth/
http://www.internetworldstats.com/stats3.htm
15
http://www.stateofdigital.com/facebook-growth-worldwide/
16
TechCrunch, “As India user base nears 100M, Facebook hopes to earn big revenue
16
from SMBs.” Mar 1, 2014, Pankaj Mishra
13
14
COMMERCE EXPERIENCE
*VALUES IN MILLIONS PER YEAR
// ‡ PROJECTED
MOBILE
MOBILE INTERNET USERS ACCOUNT
FOR MORE THAN 60% OF THE USER
BASE IN INDIA, WHICH IS FORECAST
17,18
TO REACH 200 MILLION BY 2015.
81.5m
*‡
20m
9.5m
Ernst & Young- Rebirth of ecommerce in India, 2012
http://www.fatbit.com/fab/stats-figures-facts-learn-glorious-indian-ecommerce-growth
17
18
SHOPPING BEHAVIOR
PAYMENTS
WHILE 44% OF ONLINE SHOPPERS
USE CREDIT CARDS, CONSUMERS
PREFER TO PAY CASH ON DELIVERY
(COD) AS MANY FEEL HESITANT TO
19, 20
SHARE INFORMATION ONLINE.
38m
2015
19
11m
2011
19
The number of users in India making online transactions is expected
to grow and expand from 11 million in 2011 to 38 million in 2015.21
http://www.fatbit.com/fab/stats-figures-facts-learn-glorious-indian-ecommerce-growth
Forrester Research, Q3 2011
21
Ernst & Young- Rebirth of ecommerce in India, 2012
19
20