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E-commerce expected to be 50–55 Billion USD industry by 2021: Study

Modern age consumer is more e-connected than ever, with more access to and deeper engagement with content and brands, thanks to the proliferation of internet devices.

Tags: online, ecommerce, digital, shopping, apparel, fashion, consumer electronics

BY Indian Retailer Bureau  |  Feb 28, 2017  |  comments ( 0 )  | 
E-commerce expected to be 50–55 Billion USD industry by 2021: Study

For most Indian consumers have their daily lives intertwined with digital like. A report titled ‘Decoding the Digital Opportunity in Retail’ by BCG and RAI highlights by 2021 India will have more internet users than the entire population of six G7 countries. Presently, the number of internet user in the country stands 330 Million approx. Moreover, factors including falling mobile prices, reducing data charges, growing fiber optic network, rising Smartphone penetration, rising Internet speed are serving as catalyzing the digital shift. Today’s consumer is more connected than ever, with more access to and deeper engagement with content and brands, thanks to the proliferation of digital devices and platforms.  Here are few key highlights from the report:

Key factors spurting digital growth:

1-Smartphone ASPs fell by upto 50% between 2011 and 2015.

2- 3G data rates have fallen from over 175 INR/ GB to 51 INR/ GB over the last year and are expected to fall further.

3-Under the BharatNet project government plans to cover all 2.5 lakh Gram Panchayats by Fiber Optic network, of which 68,000 have been covered in the last 4 years.

4- Smartphone penetration has increased from 3% to ~30% in the past 5 years.

5- Internet speeds have risen more than 4x in 5 years

Some lesser known facts about DIGITAL in India

1-The digital consumer goes beyond the stereotype of age, gender, income and location.

2-Digital usage is ‘omnipresent’ in the life of a consumer today.

3- The online behavior of each consumer is unique – Need to think in terms of many (hundreds) segments.

4- Digital consumer broadly spends time on ‘eight’ activities online

Digital trends those are shapping the opportunity

1-‘Digital age’ is the single largest determinant of online behavior. It is Digital age and not demographics (age , income, city tier) is the biggest driver of online behavior. As per the report 14% users use internet for online baking, 13% for online ticket purchasing and 13% for online gaming activies. 

 

2-Digital commerce is rising at a rapid pace, however, digital influence is a far more pervasive force.

3- Importance of ‘non- price drivers’ as determinants of choice for online shopping is rising

E-commerce growing exponentially

As per the report Indian e-commerce industry will touch 50–55 Billion USD by 2021. In fact, ecommerce could become a significant channel across many categories.

 

 

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