ASSOCHAM (Associated Chambers of Commerce and Industry) is one of the leading trade associations in India. The organization routinely comes out with reports on the state of the Indian industry in association with London, UK-based PwC (Pricewaterhouse Coopers), which happens to be one of the largest professional services networks in the world. A new study conducted by the two organizations now claim that the e-commerce scene in India is set to grow by a whopping 78 percent this year, thanks to attractive deals and aggressive marketing. According to the new report released on Monday, the number of people buying goods online is set to grow from around 55 million last year to over 80 million this year, thanks to the continuing proliferation of internet-ready devices like inexpensive smartphones and affordable high-speed internet plans.
Affordable smartphones and tablets are making it easier for people around the world to get online, and itâ€™s not just emerging markets like India and China where such gadgets are replacing the once-ubiquitous desktops and laptops to become the primary devices to surf the internet on. A report from late last year indicated that broadband subscriptions in the US are going down with increasing penetration of high-speed wireless internet in the country. Meanwhile, the growing importance of wireless internet combined with the exponential growth of smartphones and tablets in India over the past few years can be underlined by the fact that a recent report had indicated that as much as 41 percent of all online sales in the country happen via mobile devices. Meanwhile, the latest report from ASSOCHAM and PwC says that mobile phones and tablets are the most sought-after items online, accounting for about 11 percent of all sales revenues on e-commerce sites. The product category is expected to account for about 17 percent of all online sales by the end of next year.
According to the report, consumer electronics, along with apparel and accessories will continue to remain the largest draws for online shoppers in the country going forward, and is expected to contribute around 40 percent of total sales this year, which will be a five percentage point increase from the 2015 level of about 35 percent. What must be even more heartening for stakeholders within the industry is that those conducting the study say they expect the country's overall e-commerce industry to grow from just $25 billion in 2015 to over $100 billion by the end of 2020, thanks to a compounded annual growth rate of between 35 and 40 percent. The report also claims that about three-quarter of all travel-related business now happens on e-commerce sites, and that includes ticket purchases for airlines and trains, along with hotel bookings.