Govt proactively adopts technologies
The Indian e-commerce market is projected to expand at a compound annual growth rate (CAGR) of ~18.15% to reach a value of Rs.10,494.3 billion by 2024 from Rs.3,550.7 billion in 2018.
Increased adoption of smartphones and access to the Internet, along with streamlined logistics infrastructure are the key factors driving the growth of the e-commerce market in India, said a ResearchAndMarkets report on 25 May 2020.
The Indian government is proactively embracing and leveraging e-commerce digital platforms to transform and organize traditional offline markets through the Digital India initiative, noted the “E-commerce Market in India 2019” report.
Based on product categories, the Indian e-commerce market can be segmented into online travel, online retail, online financial services, online matrimony and classified, and other online services segments.
The online travel segment held the highest market share in 2019.
Improved air and rail connectivity, coupled with growing number of Internet users in tier II and tier III cities has boosted the online travel market.
Moreover, government initiatives to promote tourism such as Athiti Devo Bhava and Incredible India have attracted international travelers in India, which has had a positive impact on market growth.
Companies including MakeMyTrip, Goibibo, IRCTC, Clear trip and Yatra.com are leading the players in the online travel market in India.
By 2024, the online retail market is expected to dominate the e-commerce market in India and reach a value of Rs.4,289.64 billion, expanding at a CAGR of ~20.22%.
In this segment, demand for electronics products was the highest, followed by apparels and home furnishing products, in 2018.
Deep discounts offered by e-retailers in the form of cashback offers, and buyback schemes have driven the market for online retail in India.
Moreover, growing appetite for international brands, especially for apparels, has also positively affected market growth.
In the online retail space, companies such as Amazon, Flipkart and Snapdeal are the major players.
The online financial services market in India is expected to be the fastest growing segment, expanding at a CAGR of ~33.55% during the forecast period.
An increase in the number of mobile wallet and digital transactions, coupled with the proliferation of high-speed Internet has propelled the adoption of online financial services among consumers, thereby fueling market growth.
Furthermore, lucrative discounts, free coupons and cashbacks offered by companies like Paytm, Google Pay, Mobikwik and PhonePe have attracted more consumers to use digital financial services during payment for bills like telephone, and electricity.
E-commerce companies are incorporating various technologies like voice recognition, virtual and augmented reality (VR & AR), Fintech, artificial intelligence (AI) and machine learning (ML) to attract customers and compete with other players. Companies like Amazon, Flipkart, Goibibo, Ola, Zomato and Ixigo have incorporated voice assistants for assisting customers with their queries, thereby improving customers’ satisfaction. E-commerce companies are also integrating Fintech-based payment platforms like PayPal, Apple Pay, Google Pay and Amazon Pay to offer secure and efficient online payment methods to consumers.
Infibeam Avenues Ltd, Info Edge (India) Ltd, Thomas Cook (India) Ltd, BigTree Entertainment Pvt Ltd, Flipkart Internet Pvt Ltd, Jasper Infotech Pvt Ltd, MakeMyTrip (India) PvtLtd, One97 Communications Ltd, People Interactive (India) Pvt Ltd and Amazon India Ltd. fiinews.com
