Online Marketplace Will Drive 25% Of
Organized Sales in India by 2020
The report forecasts that the overall variety of online buyers will grow to 175 million by 2020 and about 33% of clients will drive two third of overall online shopping spends. According to the report, value included service will be an essential differentiator and over 90% of the online purchasers will want to pay for premium value included services over 46% of online purchasers stated that they will be willing to pay extra charges for faster delivery; 37% for hassle complimentary return and 35% were willing to pay more for extended warranty.
The report was assembled by integrating main research study of over 3000 customers, qualitative interactions of over 60 plus consumers and A.T. Kearney s exclusive model predicting online market spend across classifications, earnings sectors, and geographies in 2020. Participants comprised of online buyers (1380) and non-buyers (1380), sellers, non-internet users throughout 20 cities in India including cities and tier 1, 2 and 3 cities.
Commenting the essential findings of the report, Rajan Anandan, VP & Managing Director, Google SEA & India said, the online shopping Industry in India is at an inflection point and will touch 175 million online purchasers by 2020. Having said that the next three to four years will be crucial for the Industry to obtain on the path of sustained profitability. According to the report some of the locations that will accelerate and support success include following a focused method to drive deeper engagement with 60 million high value clients as they will drive 2/3 of the overall invests in online shopping. Innovative delivery models and developing Omni channel existence will help employ new online consumers and assist grow the overall share of online shopping from the organized retail Industry in India.
Our information reveals that bulk of buyers will continue to acquire online even if there are no discount rates. With the best online game strategy and focused efforts the online shopping market will grow at a healthy CAGR of above 40%.
Some of the other findings of the report include a five times growth in number of women consumers by 2020 and women currently going shopping online will more than double their share of online invest. They are most likely to spend more on lifestyle classifications, namely clothing and devices, and are looking for the most recent trends and brands online. Women respondents likewise that they will enhance them invests of online shopping if they can get more choices for flexible delivery time, and more pick up places so that they weren’t need to reveal too many personal information.
Garments and Accessories as a category will exceed customer electronics to become the largest online category by 2020 at 35% of the total online spends. Consumer electronics will be at 20% by 2020. New purchasers will more likely begin their online purchase journey with Lifestyle, followed by Consumer Electronics and existing buyers will invest more on Lifestyle driven by accessibility of most current designs. Specific niche classifications like home (furniture and furnishing) and personal care will see high adoption due to assortment and benefit of purchase especially in Tier 2 cities.
Omni-channel presence will end up being crucial in Home & Furnishings, Lifestyle and Consumer Electronics classification to serve the need-gaps of non-buyers. In home and furnishing over 60% buyers desired retail outlets to be able to see and test the product prior to acquiring. In lifestyle, 40% respondents said that offline stories will help in modifications of clothes and for consumer durables 60% buyers wanted salesman assistance for setting up and utilizing the product.
By 2020, 55% of online volumes will be driven by cashless transactions. Mobile wallet share will double by 2020 to reach 15% from current 8%. The base of online sellers will need to grow 5 times more to deal with the boost in need from users throughout locations and improve shipment capabilities.
A.T. Kearney is a global management consulting companies with offices in more than 40 nations. Since 1926, the firm has been trusted consultants to the world’s foremost organizations. A.T. Kearney is a partner-owned firm, committed to assisting customers accomplish immediate impact and growing benefit on their most objective crucial concerns.