The Online marketplace firms Flipkart and Snapdeal have managed to keep their top spots with a combined gross merchandise value (GMV) market share of 71 per cent, according to global brokerage firm Morgan Stanley.
What is GMV?
GMV or gross merchandise value for e-commerce companies means sale price charged to the customer multiplied by the number of items sold.
According to the report, Flipkart bagged the top spot, with a GMV market share of 45 per cent, while Snapdeal came in second, with 26 per cent. The report puts Amazon India at number three, with a GMV share of 12 per cent.
â€œThe e-commerce market was dominated by the three large general merchandise companies in 2015, with a combined GMV market share of 83 per cent. It will be interesting to see how these market shares play out in 2016 as Snapdeal, Amazon and Paytm have all raised their competitive intensity to close the gap with Flipkart,â€ it said in its report. The other ecommerce firms stand behind.
â€œCurrently, India has the second-largest internet population in the world. We expect internet penetration to increase from 32 per cent in 2015 to 59 per cent in 2020, translating to a near-doubling of the internet user base,â€ it said. The report expects the number of online shoppers in India to grow to 320 million by 2020 from 50 million in 2015.