Country profile: IndiaeCommerce on the rise

AU$17.5billion

eCommercemarket

22.7million

population

Despite its large population, India's eCommerce market is only just bigger than

Australia's online market.

AU$24.2billion

eCommercemarket

1.25billion

population

[1]

[2][3]

With 68% of its citizens below the age of 35 years old, India has the largest youth

population in the world.[4]

With eCommerce accounting for less than 1% of retail sales in India, the prospects for growth over the coming

years are very promising. By some predictions, the market could reach $100 billion by 2019.[5]

2015

2019

At just over 27%[6], India's internet penetration is

relatively low, but hundreds of millions of Indians are

set to go online in the coming years.

20

2004

2013

2015

2019

243

350

640(predicted)

Internet users in india (millions)

[7]

[7]

[8]

[9]

Let's look more closely at the Indian consumer

As of August 2015, India has 590 million unique mobile users, or 46% of the population. Of those

users, there are 159 million active mobile internet users, or

12% of the population.[10]

Predicted mobile internet users in india

(millions)

173

2014

2015

2016

2017

2018

2019

232

286

342

399

457

Did you know?

India is the world's third largest

smartphone market after the US and

China, with almost 50% of models

costing under $100.[12]

[11]

Going mobile

In India, less than 5% of digital sales happens on mobile, but 30% of traffic for eCommerce sites come from mobile

and tablets. [12]

Did you know?

11% of Indians have made a purchase via mobile in the past month.[13]

Shopping via mobile

Rise of the ‘rurban’ Indian

Being 'rural in demography' but 'urban in lifestyle' marks the arrival of the 'rurban' class of Indian consumers.[15]

While roughly 1 in 7 people in India live in areas without any mobile reception,[15]

there has been a 600% growth in rural internet subscriptions in the past 3 years.[14]

Active internet users [15]

(millions)

61(7% penetration)

289(76% penetration)

rural urban

India's eCommerce market has four

main players.

They are flush with billions in investment

and poised for growth.[16, 17]

Marketplaces

Flipkart

snapdeal

amazon.in ebay.in

A recent study found eCommerce companies

received the most complaints in India

in 2014.

Problems include:

• delay in delivery• delivery of wrong product • issues with refunds and

replacement • lack of product availability

• trouble with deals and discounts[18]

Customer service issues

Missing and stolen parcels are a persistent problem.[19]

India's size and diversity has resulted in a lack of logistics

infrastructure, with the last mile being particularly difficult.

This has undermined efforts of web-based merchants to build

customer loyalty.[20]

Logistical roadblocks

Many people in India lack credit cards, internet banking services, or a

secure connection, making eCommerce payments

difficult.

This is especially pronounced in rural areas.[21]

Payment problems

Checkout

Pay with Credit

Pay with bank transfer

Informal and traditional retail will continue to

dominate, but eCommerce is on the rise.

Growth is coming from an emerging middle class, the

younger generation and rural consumers. [22]

Supply chain issues are hindering consumer

confidence.

To sum up

The good news? StarTrack is currently exploring ways to help our customers enter

Indian eCommerce marketplaces and achieve best-possible supply chain and

delivery outcomes.

Expanding overseas?

Call StarTrack today on 13 2345

A business of Australia Post

12

13

14

15

16

17

18

19

20

21

22

http://www.gartner.com/newsroom/id/2876517

We Are Social, August 2015http://www.slideshare.net/wearesocialsg/digital-social-mo-bile-in-india-in-2015/3-We_Are_Social_wearesocialsg_wearesocialsgACTIVEINTERNET

WARC 2015, Rise of the rurban Indian

We Are Social, August 2015http://www.slideshare.net/wearesocialsg/digital-social-mo-bile-in-india-in-2015/3-We_Are_Social_wearesocialsg_wearesocialsgACTIVEINTERNET

Times of India, 2015http://timesofindia.indiatimes.com/tech/tech-news/Flip-kart-vs-Snapdeal-The-gloves-are-off/articleshow/48837848.cms

http://www.cnbc.com/2015/07/30/snapdeal-indias-e-com-merce-can-grow-faster-than-china.html

The Economic Times (2015)http://articles.economictimes.indiatimes.com/2015-02-15/news/59166794_1_e-commerce-players-akosha-complaints

Bloomberg, 2014http://www.bloomberg.com/bw/articles/2014-12-11/logis-tics-hold-indias-e-commerce-companies-back

Financial Times, 2014http://www.ft.com/cms/s/0/67706956-640f-11e4-8ade-00144fe-abdc0.html

WARC 2015, Rise of the rurban Indian

WARC, 2013.

CIA World Fact Book, July 2015

Statista, 2015http://www.statista.com/topics/2454/e-commerce-in-india/

NAB Online Retail Sales Index http://business.nab.com.au/tag/online-retail-sales-index/

WARC, 2013

Times of Indiahttp://timesofindia.indiatimes.com/tech/tech-news/Indi-an-ecommerce-industry-to-post-35-growth-Study/articleshow/48843725.cms

PwC, eCommerce in India: accelerating growth, 2015 http://www.pwc.in/assets/pdfs/publications/2015/ecom-merce-in-india-accelerating-growth.pdf

Economic Times, 2015http://articles.economictimes.indiatimes.com/2015-09-03/news/66178659_1_user-base-iamai-internet-and-mobile-association

Next Big What, 2015 http://www.nextbigwhat.com/internet-industry-data-india-297/

We Are Social, August 2015 http://www.slideshare.net/wearesocialsg/digital-social-mo-bile-in-india-in-2015/3-We_Are_Social_wearesocialsg_wearesocialsgACTIVEINTERNET

KPMG India

IDC 2015 http://www.idc.com/getdoc.jsp?containerId=prSG25827215

References

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