Online Retail Market in India

Online Retail Market in India

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Online retailing is the process of buying and selling products and services, such as COD, card on delivery, or trial services, through the internet. Buyers can purchase products of their choice without any time and location constraints. This practice is gaining momentum, as it is beneficial for both buyers and sellers. Vendors that sell their products online either maintain their own websites or operate through other web portals. Previously, there were very few e-tailing vendors in India, but today, buyers can find numerous web portals that offer products across various categories.

Online retail, which constitutes a tiny fraction of the overall retail market in India, is growing rapidly because of several factors such as rising disposable income, increased internet penetration and smartphone usage, and growing digital awareness among consumers. Today, online retailing is not only limited to large cities, but it has also gained widespread popularity in small towns and cities, as it is highly convenient, provides 24 hour access and saves time. The Online Retail market in India is expected to grow at a CAGR of 55.70 percent during the forecast period. According to TechNavio analysis, as of 2013, India had an internet population of 198 million, which was the third largest in the world after China and the US. It also has the youngest online population when compared with the other BRIC countries.

The Online Retail market in India is driven by several factors, of which the increased internet penetration of the past few years has spearheaded the growth of online retail in the country. Another major driver is the availability of easy payment options such as COD.

Although the market has several drivers, the growth of the Online Retail market in India is curtailed by some serious challenges. One of the main challenges is a lack of infrastructure to support new businesses. Online retailers in India have faced infrastructure bottlenecks, which affect product delivery and customer satisfaction.

Despite these challenges, the Online Retail market in India is expected to grow in the future, mainly because of some emerging trends. One such trend is the touch-and-feel comfort through virtual trial rooms, making online shopping a more pleasurable experience. Another major trend in the market is the increasing demand from tier II and tier III cities. Thus, with the presence of several drivers and trends, the future of the Online Retail market in India is expected to be promising during the forecast period.

 

Market Overview

The Indian Retail industry is valued among the top five retail industries worldwide. It is experiencing exponential growth, with retail development taking place not just in major cities, but also in small towns and tier II cities. The Retail sector in India has emerged as one of the largest sectors in Indian economy. The Retail market in India was valued at US$535.3 billion in 2013 and is expected to reach US$705.6 billion by 2018, growing at a CAGR of 5.68 percent.

 

Retail Market in India 2013 and 2018 (US$ billion)

 

market

In 2013, the Food and Grocery category dominated the Retail market in India, accounting for a share of 71 percent. The Food and Grocery category was followed by the Apparel and Footwear, and Consumer Electronics and Electricals categories, which accounted for 13 percent and 8 percent, respectively. The Home Care Products, Furniture and Furnishings, and Others categories accounted for minimal shares of 3 percent, 1 percent, and 4 percent, respectively.

The Organized Retail sector (sales through licensed retailers registered for sales tax, income tax, and others) in India accounted for 7.2 percent in 2013, which was much lower than other Asian countries such as Malaysia, Thailand, and Philippines where this sector is highly developed and has a corresponding share of 50 percent, 40 percent, and 35 percent, respectively.

 

Retail Market in India by Category 2013

 

   graph

Market Size

2013: 2018: US$2.10 billion

US$19.21 billion

Market Growth Rate

2013: 2018: 51.32 percent

60.13 percent

CAGR 55.70 percent
Key Categories

Apparel, Footwear, and Accessories:       36 percent

Consumer Electronics and Electricals:       34 percent

Books and Stationery:                                 11 percent

Beauty and Personal Care:                         6 percent

Home Care and Furnishings:                       6 percent
  Others:                                                           7 percent
Key Customer Segment Individual Consumers
Key Market Drivers

Increased Internet Penetration

Easy Payment Options

Increasing Time-poverty

Younger Demographics

Growing Popularity of Celebrity Fashion
High Growth during Festive Seasons
Key Market Challenges

Lack of Infrastructure

Lack of Trust in Online Payment

“Touch and Feel” Factors

Government Regulations
Key Market Trends

Growing Trend of Touch-and-Feel Comfort through Virtual Trial

Rooms

Increasing Demand from Tier II and Tier III Cities

Social Networking

Mobile Commerce, a True Game Changer

Fashion Category to Drive Sales
Women to Influence GMV in the Future
Partnering Traditional Retailers and Educational Institutions
Key Buying Criteria

Authentic Products

Availability of Products

Cost

Customer Service Support

Payment Process
Service Delivery
Key Vendors

Flipkart.com

Jabong.com

Myntra.com

Snapdeal.com

 

Market Overview

This report covers the present scenario and the growth prospects of the Online Retail market in India for the period 2014-2018. It provides a comprehensive overview of the Online Retail market in India in terms of GMV sales, and examines areas such as scale, growth, and shares. This is followed by the market overview section for the Online Retail market in India providing the size and growth of the market.

The report also presents the vendor landscape and a corresponding detailed analysis of the leading vendors in the Online Retail market in India. In addition, it discusses the major drivers that influence the growth of the market. It also outlines the challenges faced by vendors and the market at large, as well as the key trends that are emerging in the market.

Market Research Process

The market dynamics have been ascertained following a detailed study of the micro, meso, and macroeconomic indicators of the market.

 

How report is made:

method

 

 

  1. Executive Summary…………………………………….. 1
  2. List of Abbreviations…………………………………….. 3
  3. Scope of the Report…………………………………….. 4

03.1 Market Overview……………………………………….. 4

03.2 Product Offerings……………………………………….. 4

  1. Market Research Methodology…………………… 6

04.1 Market Research Process…………………………….. 6

04.2 Research Methodology……………………………….. 6

  1. Introduction…………………………………………………. 8
  2. Market Landscape………………………………………. 9

06.1 Market Overview……………………………………….. 9

06.1.1 Retail Scenario in India…………………………………….. 9

06.1.2 Comparative Analysis of Online Retail and Retail Market in India 2013 and 2018………………………………………………………………………………… 11

06.2 Market Size and Forecast…………………………………………….. 12

06.3 Five Forces Analysis……………………………………………………… 13

  1. Market Segmentation by Category………………………………… 15

07.1 Online Retail Market in India by Category……………………….. 15

07.2 Online Apparel, Footwear, and Accessories Market in India………. 17

07.2.1 Market Size and Forecast………………………………… 17

07.3 Online Consumer Electronics and Electricals Market in India………. 18

07.3.1 Market Size and Forecast……………………………………………. 18

07.4 Online Books and Stationery Market in India……………….. 19

07.4.1 Market Size and Forecast………………………………………….. 19

07.5 Online Beauty and Personal Care Market in India  …..         20

07.5.1 Market Size and Forecast…………………………………………… 20

07.6 Online Home and Furnishings Market in India……………… 21

07.6.1 Market Size and Forecast………………………………………….. 21

07.7 Online Others Market in India…………………………………….. 22

07.7.1 Market Size and Forecast…………………………………………. 22

  1. Buying Criteria……………………………………………………….. 23
  2. Market Growth Drivers……………………………………………. 25
  3. Drivers and their Impact………………………………………….. 27
  4. Market Challenges……………………….………………………….. 28
  5. Impact of Drivers and Challenges………………….………….. 30
  6. Market Trends………………………………..……………………….. 31
  7. Trends and their Impact…………………………………………… 34
  8. Vendor Landscape……………………………………………………. 35

15.1 Competitive Scenario…………………………………………………. 35

15.1.1 Key News………………………………………………………………… 35

15.1.2 Mergers and Acquisitions………………………………………….. 36

15.2 Online Retail Market in India by Vendor Ranking 2013    37

15.3 Other Prominent Vendors…………………………………………… 37

  1. Key Vendor Analysis………………………………………………… 41

16.1 Flipkart.com……………………………………………………………… 41

16.1.1 Business Overview……………………………………………………. 41

16.1.2 Business Segmentation…………………………………………….. 42

16.1.3 Key Information……………………………………………………….. 43

16.1.4 SWOT Analysis…………………………………………………………. 44

16.2 Snapdeal.com………………………………………………………………. 45

16.2.1 Business Overview……………………………………………………. 45

16.2.2 Business Segmentation…………………………………………….. 47

16.2.3 Key Information……………………………………………………….. 48

16.2.4 SWOT Analysis…………………………………………………………. 49

16.3 Myntra.com……………………………………………………………….. 50

16.3.1 Business Overview……………………………………………………. 50

16.3.2 Business Segmentation…………………………………………….. 51

16.3.3 Key Information……………………………………………………….. 52

16.3.4 SWOT Analysis…………………………………………………………. 53

16.4 Jabong.com……………………………………………………………….. 54

16.4.1 Business Overview……………………………………………………. 54

16.4.2 Business Segmentation…………………………………………….. 55

16.4.3 Key Information……………………………………………………….. 56

16.4.4 SWOT Analysis…………………………………………………………. 57

  1. Other Reports in this Series……………………………………….. 58

 

 

Exhibit 1: Market Research Methodology……………………………. 6

Exhibit 2: Retail Market in India 2013 and 2018 (US$ billion) …. 9

Exhibit 3: Retail Market in India by Category 2013 …………….. 10

Exhibit 4: Comparison between Online Retail and Retail

Market in India 2013 and 2018……………………………………. 11

Exhibit 5: Online Retail Market in India 2013-2018 (US$ billion) ..

……………………… 12

Exhibit 6: Online Retail Market in India by Category 2013 …. 15

Exhibit 7: Online Apparel, Footwear, and Accessories Market

in India 2013-2018 (US$ million) …………………………………… 17

Exhibit 8: Online Consumer Electronics and Electricals Market in India 2013-2018 (US$ million) …………………………………… 18

Exhibit 9: Online Books and Stationery Market in India 2013-

2018 (US$ million) ……………………………………………………….. 19

Exhibit 10: Online Beauty and Personal Care Market in India

2013-2018 (US$ million) ……………………………………………….. 20

Exhibit 11: Online Home and Furnishings Market in India 2013-

2018 (US$ million) ……………………………………………………….. 21

Exhibit 12: Online Others Market in India 2013-2018 (US$ million)

…………………………….. 22

Exhibit 13: Top four Online Retailers in India 2013 ………………… 37

Exhibit 14: Flipkart.com: Business Segmentation ………………….. 42

Exhibit 15: Snapdeal.com: Business Segmentation ……………… 47

Exhibit 16: Myntra.com: Business Segmentation ………………….. 51

Exhibit 17: Jabong.com: Business Segmentation…………………. 55

Publish Date: October 2016

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