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Online Retail Market in India to Leap Ahead 50% | An Aranca Infographic
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©2015 Aranca. All Rights Reserved. www.aranca.com If you wish to reproduce or use this infographic in any format, please email us at [email protected] Compiled by: Amey Mahant Source: Crisil, PwC, Business Standard, Forbes, MarketWatch, Wall Street Journal, Economic Times, DNA, Mint, Times of India, E&Y , IDC, AT Kearney Online Retailing in India to Leap Ahead 50% By 2016, the Indian online retail market is expected to grow at more than 50% annually, largely driven by intense competition. Indian Online Retail Market Size (in USD Million) Note: P refers to Projected E refers to Expected CAGR: 54.12% 2013E 2014P 2011 936 1469 2245 3618 5394 8140 2015P 2016P 2012 Electronic retailing market – breakup by products, 2013 Key Parameters for Comparison: Online Retail Companies (2014) Apparels and accessories 34% Books 15% Beauty and personal 10% Electronics 30% Healthcare 3% Baby products 2% Home and furnishing 6% Challenges Increasing preference for online shopping: In India, 62% of consumers prefer shopping online; more than the global average of 54% placing India ahead of the US, the UK, Japan and Russia, among other countries. Favourable demographics: India is set to become the youngest country by 2020. The average age of a working individual at that time is expected to be 29. Booming smartphones: In Q3 2014, 72.5 million units were shipped (23.3 million smartphones and 49.2 million feature phones) in the Indian mobile phones market, representing a 9% year-on-year growth. Lack of ‘touch-feel-try’ experience: Consumers cannot try products before purchasing in online retail. This acts as a barrier for some Internet users. Untimely delivery of products: While it takes just a few minutes to search, order and pay for a product online, its delivery may take an unreasonable amount of time. Lack of trust : Given the fact that customers do not get to physically see or experience the product, gaining consumer confidence becomes all the more important. This should be done by assuring the customer that an online retailer is also available offline (inventory setups). Drivers Key Parameters GMV/Sales (USD Billion) Number of Products (in Million) Product Categories Sellers Presence in India (in years) Latest Funding (USD Million) 1,700 Fashion segment (Myntra was acquired for USD300 Million) Mitigating risks by expanding into multiple categories such as furniture, jewellery and groceries Focus Areas Investment Plans (USD Billion) 1 2 1 0.133 3 15 70 3,000 7 2,000 Expanding seller base Logistics and ‘guaranteed service’ delivery 1 15 24 5,000 1 eBay – 133; Blackrock – 105; Softbank – 627 Total (865) 1 5 500 1,00,000 4 9 133 (into SnapDeal) NA 1.1 2,000 45,000 Growth driven by PayPal Improving conversion rate Tier 2/3/Non-metro cities Expanding on the marketplace model
Transcript of Online Retail Market in India to Leap Ahead 50% | An Aranca Infographic
©2015 Aranca. All Rights Reserved. www.aranca.comIf you wish to reproduce or use this infographic in any format, please email us at [email protected]
Compiled by: Amey Mahant
Source: Crisil, PwC, Business Standard, Forbes, MarketWatch, Wall Street Journal, Economic Times, DNA, Mint, Times of India, E&Y , IDC, AT Kearney
Online Retailing in Indiato Leap Ahead 50% By 2016, the Indian online retail market is
expected to grow at more than 50% annually,
largely driven by intense competition.
Indian Online Retail Market Size (in USD Million)
Note: P refers to Projected
E refers to Expected
CAGR: 54.12%
2013E
2014P
2011
936
1469
2245
3618
5394
8140
2015P
2016P
2012
Electronic retailing market – breakup by products, 2013
Key Parameters for Comparison: Online Retail Companies (2014)
Apparels and accessories
34%
Books15%
Beauty and personal10%
Electronics30%
Healthcare3%
Baby products2%
Home andfurnishing
6%
Challenges
Increasing preference for online shopping: In India, 62% of consumers prefer shopping online; more than the global average of 54% placing India ahead of the US, the UK, Japan and Russia, among other countries.
Favourable demographics: India is set to become the youngest country by 2020. The average age of a working individual at that time is expected to be 29.
Booming smartphones: In Q3 2014, 72.5 million units were shipped (23.3 million smartphones and 49.2 million feature phones) in the Indian mobile phones market, representing a 9% year-on-year growth.
Lack of ‘touch-feel-try’ experience: Consumers cannot try products before purchasing in online retail. This acts as a barrier for some Internet users.
Untimely delivery of products: While it takes just a few minutes to search, order and pay for a product online, its delivery may take an unreasonable amount of time.
Lack of trust : Given the fact that customers do not get to physically see or experience the product, gaining consumer confidence becomes all the more important. This should be done by assuring the customer that an online retailer is also available o�ine (inventory setups).
Drivers
Key Parameters
GMV/Sales(USD Billion)
Number of Products (in Million)
Product Categories
Sellers
Presence in India(in years)
Latest Funding(USD Million) 1,700
Fashion segment (Myntra was acquired for USD300 Million)
Mitigating risks by expanding into multiple
categories such as furniture, jewellery
and groceries
Focus Areas
Investment Plans (USD Billion) 1 2 1 0.133
3
15
70
3,000
7
2,000
Expanding seller base
Logistics and ‘guaranteed service’
delivery
1
15
24
5,000
1
eBay – 133; Blackrock – 105; Softbank – 627
Total (865)
1
5
500
1,00,000
4 9
133 (into SnapDeal)
NA
1.1
2,000
45,000
Growth driven by PayPal
Improving conversion rate
Tier 2/3/Non-metro cities
Expanding on the marketplace model
