Online retail in India on the rise

Tuesday 8 April 2014 14:52 CET | News

Online retail in India has witnessed a considerable increase, accounting for almost 1 million online retailers, according to a recent report.

Findings from Internet & Mobile Association of India (IAMAI) indicate that online retail reached almost USD 10.5 billion registering a year-on-year Compound annual growth rate (CAGR) of 34% since 2009. The same source mentions that the figure is expected to increase further as policy and FDI issues are addressed and delivery logistics come of age.

This growth in the online retail space in India is the result of a global trajectory, with agglomeration and consolidation in the online retail business being strong indicators of the business model fundamentals, according to industry experts.

According to Dr. Subho Ray, President IAMAI almost one million large and small retailers make use of online marketplaces to reach out to their customers in India. These online retailers represent a very wide range of categories including electronics, books, apparel, accessories, footwear and jewellery.

The IAMAI study also shows that original equipment manufacturers have started to launch their products through online marketplaces and to invest in their own brand marketing. There is also a difference in management, considering that while technology platforms are usually run from city centres, logistical management, such as storage, godowns and deliveries are being handled from Tier 2 or Tier 3 cities.

Check out our Cross-border Ecommerce Research section here for more info on specific ecommerce facts & figures, preferred payment methods, risk and fraud, as well as ecommerce legislation & regulation in emerging and developed countries.

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Keywords: India, online, retail, ecommerce, IAMAI
Categories: Payments & Commerce
Countries: World
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