E-Commerce market forecast by 2020 in India
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On account of rising number of e-commerce websites, growing internet penetration, and increasing sophistication and diversification of small businesses, India s e-commerce market is forecast to grow exponentially over the next five years.
India is one of the world s emerging markets in terms of e-commerce, in fact, the recent past has seen online sales improve in a number of ways. Increased internet availability means more people are logging on and choosing internet retailers to supply their needs.
India’s e-Commerce revenue is expected to jump from $30 billion in 2016 to $120 billion in 2020. growing at an annual rate of 51%, the highest in the world, according to a joint ASSOCHAM–Forrester study paper.
The number of digital buyers in India, aged 14 or older. is a huge factor in this growing market. In 2011 were estimated at 14.5 million nationwide, this number rose to 19.2 million in 2012 and forecasts predict that the number will exceed 40 million by 2016.
Consumers in India are increasingly opting for online shopping as online retailers offer huge discounts on their products. Private label brands, launched by various online retailers, are also fueling growth in the country s e-commerce market as retailers are now able to offer a wider range of products to their customers at competitive prices .
The country s e-commerce market is forecast to witness staggering growth on the back of increasing working population and growing number of middle class households, which is expected to reach around 53 million by the end of 2015, and is further anticipated to double by 2025.
According to India E-commerce Market Forecast Opportunities, 2020 , the country s e-commerce market is projected to grow at a CAGR of more than 36% during 2015 2020.
E-services segment. which comprises online travel, online payments, online classifieds, etc. is expected to continue its domination through 2020. However, the e-tail segment that includes electronics, apparels accessories, health and personal care, etc. is expected to witness significantly higher market growth compared to e-services segment over the next five years.
During 2015-20, the western region is expected to remain the largest e-commerce market in the country. Major players operating in India s e-tail market include Flipkart ,Snapdeal and Amazon .
According to the Ecumen . the Business to Business (B2B) segment of e-commerce industry is set to grow by 2.5 times to touch Rs 45 lakh crore by 2020, An Ahmedabad based e-commerce consultant firm Ecumen says that by the end of the 2015, the B2B e-commerce industry in India is expected to reach about Rs 19.13 lakh crore .
The Global trend will be similar lines with B2B set to take its own bigger leaps as compared to the B2C is concerned. The global B2B e-commerce market is estimated to reach $1.7 trillion by 2015. as it s twice as big as B2C market.
The E-commerce Strategies of global B2B market is expected to reach $6.7 trillion by 2020. almost four times bigger than present size Countries like China, Japan and USA have the largest share of B2B market while it s comparing to B2C.
With annual additions of 25 million internet users, India is ahead of countries like Brazil and Russia even within the BRICS nations. India has an Internet user base of 400 million in 2016 whereas Brazil has 210 million internet users and Russia has 130 million of internet user.
However it also identified certain hurdles in the B2B e-commerce market such as execution of technology, logistics and taxation, among others.
The B2B Technology implementation is difficult. and reaching to target profession requires approached e-marketing and various marketing. B2B e-commerce in India has to develop strong business and logistical connections with exporters and business to ensure smooth product delivery. Through away taxation is also a big problem where in SME S are restricting their online presence due to the thinner margins online.