Google says online to drive 25% of organised retail sales in India


The number of women shoppers will grow fivefold and their online spend is expected to double

India’s digital shoppers will continue to buy products online even without discounts, which is the current trend among e-tailers, according to a report released by Google.

E-tailing will become a substantial channel for the organised retail sector, contributing 25 per cent of the total organised retail sales by 2020 in the country, according to the report.

At present e-commerce contributes about 15 per cent of the organised retail and it is expected to reach a gross merchandising value (GMV) of $60 billion by the end of 2020.

The report titled ‘Digital Retail 2020’ released by Google in partnership with A.T. Kearney captures the evolving industry dynamics and key consumer insights that will drive the next phase of e-commerce in India.

Shopping volume

It predicted that the total number of online shoppers will grow to 175 million and about 33 per cent of customers will drive two-thirds of total shopping volume.

“The e-tailing industry in India is at an inflection point and will touch 175 million online buyers by 2020. Having said that the next three to four years will be critical for the industry to get on the path of sustained profitability,” said Rajan Anandan, Vice-President and Managing Director, Google SEA & India.

The next three to four years will be critical for the industry to get on the path of sustained profitability, according to the report. For the Indian e-commerce industry, which is facing huge losses due to discount model has to adopt innovative delivery models, creating omni-channel presence, among others, to help grow the overall share of e-tailing.

According to the report, value-added services will be a key differentiator and over 90 per cent of the online buyers will pay for premium value added services.

“Our data reveals that majority of buyers will continue to purchase online even if there are no discounts. With the right game plan and focussed efforts the e-Tailing industry will grow at a healthy CAGR of 40 per cent,” said Ajay Gupta, Partner with A.T. Kearney.

It also estimates that 55 per cent of online volumes will be driven by cashless transactions as against 40 per cent today. Mobile wallet share is expected to double to reach 15 per cent from the current 8 per cent.

Women shoppers

The report also predicted a five-fold growth in number of women shoppers. They are expected to more than double their share of online spend.

The findings of the reports also predict that lifestyle as a category will overtake consumer electronics to become the largest online category at 35 per cent of the total online spends.

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Printable version | Jan 27, 2020 5:25:28 PM |

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