oday, as part of our 2015 round-up on the state of international ecommerce, we are looking at India, one of the world’s fastest developing online markets.
India is currently the fastest developing ecommerce market in the Asia-Pacific, and is also one of the fastest growing consumer markets across the entire continent!
Despite, ecommerce sales as a percentage of total retail sales in India still being very low, accounting for only 0.9% at the end of 2015, this figure is expected to grow reaching 1.4% by 2018, with mobile commerce becoming increasingly important.
Driven by the healthy economic growth, a rapidly emerging middle class and the rising disposable income of Indian consumers, online sales in India are expected to hit the impressive $20bn by the end of the year.
While India is still maturing, the ecommerce landscape in the country increasingly caters to the younger and more tech savvy consumers with a keen eye for fashion and technology. Currently, 75% of all online shoppers in India are under the age of 35.
Mobile commerce also has a huge impact on the online retail industry in India, having grown by 100% over the last two years. Currently, 90% of all internet users in the country are also active browsers on their mobile devices.
With internet penetration and smartphone ownership expected to grow further, as much as 70% of all Indian online shoppers are expected to purchase from mobile over the next few years.
As Indian shoppers become better connected and more informed their demand for good bargains and high-quality international products rises. So does their confidence in purchasing from foreign retailers. This makes cross-border trade another key factor that will increasingly drive further growth in the Indian ecommerce industry.
In the New Year, the increased use of smartphones, the rising middle class, and the growing purchasing power of young consumers, are expected to be the three main trends to shape the ecommerce landscape in country.
So, by the end of 2016, online retail in India is set to more than double, reaching $50bn, while the number of online shoppers is projected to top 41 million, representing some 27% of the total number of internet users in the country.
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