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Online shopping to place 2/3rd of ecommerce market by 2020

Update On :20 August 2016

Online shopping to place 2/3rd of ecommerce market by 2020

‘The Future of Internet in India’ a new report which was recently released by the National Association of Software & Services Companies (NASSCOM) in association with Akamai Technologies.

The report revealed that by 2020, India’s internet base will touch 730 million and that rural consumers will drive this growth.

Power of Internet

In a study conducted by IAMAI and IMRB in November 2015, it was reported that India has the third largest Internet user base in the world; first and second being China and US, respectively. According to NASSCOM, India has surpassed US’ number and is now at the second position.

According to NASSCOM-Akamai, the surge in Internet users is due to:

The start-up ecosystem in India

Government’s initiatives

Increased adoption of smartphones

Rise of online services and devices

Online shopping to exceed travel by accounting for 2/3rd of the total ecommerce market

Travel dominates the Indian ecommerce market with nearly 70% share. But this will change by 2020 according to NASSCOM’s report. Online shopping will replace travel in the next 4 years to become the dominating sector.

Some of the 2020 predictions mentioned in the report are:

730 million Internet users in India  

75% of new Internet user growth from rural areas  

70% of ecommerce transactions through mobile phones 
 
75% of new Internet users to consume data in local languages  

India will continue to be the fastest growing Internet market

India’s fintech market is expected to grow 1.7x between 2015 and 2020

With rise of ecommerce and online transactions, demand for security technologies and professionals is rising

Indian ecommerce industry’s growth is heavily dependent on Internet penetration. If the findings of this study are to be believed, then etailers have every reason to be happy. What remains to be seen is how ecommerce players will utilize this opportunity. 

News Source From : http://indianonlineseller.com/2016/08/online-shopping-to-account-for-23rd-of-ecommerce-market-by-2020-nasscom-report/

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