Consumer e-commerce sales in India is enjoying strong growth, with predictions from the Internet Online Association of India (IOAI) estimating that the medium will reach a value of $550 million by 2006-2007.
According to the new
Power Shopper: E-commerce Report 2005-06, the internet has been a key driver of the Indian economy, with outsourcing bolstering the country’s economics and bringing in billions of dollars of foreign investment every year.
Commenting on the report’s findings, Neville Taraporewalla, IOAI chairman, said: “Today the Indian internet is over 25 million and is expected to grow to 100 million by 2007.”
Recommending that online retailers use this new business environment to their advantage, he added: “The rapid development of e-commerce is forcing companies today to adopt business strategies revolving around the internet.”
Other findings from the report showed that online shoppers were found to be predominately male, at a massive 85%.
Almost half of regular shoppers, 46%, were in the 26-35 age group, with a quarter in the 18-25 age bracket and just 18% were aged between 36 and 45.
Among the reasons cited for shopping online, “home delivery” was the number one response. Respondents also liked the time saving and ability to shop at any hour offered by the internet. The IOAI found that 80% of shoppers were satisfied with online shopping.
Japan is leading the Asia-Pacific region in the retail e-commerce division, with sales of $38.4 billion in 2004, making it roughly one-third the size of the US market, according to eMarketer’s new Asia-Pacific E-Commerce report (see DSL Overtaking Cable Broadband In US).
South Korea was shown to have reached sales of $6.3 billion in 2004, with China and Taiwan tied third, each with about $1.1 billion in sales.
Retail e-commerce is dependent on the level of internet and broadband penetration within the region. The Asia-Pacific region’s overall ranking is boosted by high internet connectivity rates in Hong Kong, Australia and Singapore, and by innovation in products and services in South Korea and Japan. However, the region is pulled down by poor performances from China and India.
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