Ecommerce market is reaching new heights as online shopping has grown many folds in the last four-five years, especially in the year 2012. Google has released its report on ecommerce trends and the share of potential categories driving the ecommerce market. As per the report, online shopping has grown by a whooping 128 percent in the year 2011-12 as compared to 40 per cent in the year 2010-11. Another important finding of the report suggests that while it was electronics and books that had lead the shopping categories, the year 2012 saw a potential growth in apparel and accessories with it comprising of 30 percent of the queries filed on Google search, and this trend is expected to see major growth in the year 2013 as well.
As suggested by the report, books and electronics lead the e-commerce growth initially, but 2012 saw a huge growth in the demand for apparels and accessories via online portals. It is expected that the apparel and accessories market will overtake consumer electronics, which shared 34 percent of the overall Google search records in 2012 and make a larger space than consumer electronics.
Online shopping is not just restricted to the metros or the top 6 big cities as states like West Bengal, Bihar, Punjab, UP etc also witnessed more than 500 percent growth in last year. Also, online shopping portals saw over 51 percent of traffic coming from non-metros during the Online shopping festival that happened last in December.
As far as the factors driving the ecommerce go, the Google report suggests that more than 30 percent of the shopping queries come from mobile, which shows that penetration of smartphones and the growth amongst users accessing data on mobile are contributing to the overall ecommerce growth. So it is the mobile devices that came out well as compared other platforms to access these online portals.
Baby products, home décor and healthcare as categories have seen the most growth in the year 2012. While 50 percent invested in home décor products online, almost 40 percent of the overall consumers had bought baby products online. It suggested that 2 out of every 5 customers have bought these products online in the year 2012.
The report also suggests that consumers who have bought an airline ticket online, had also shopped more for other products. Moreover, these came out to be as potential buyers who can spend an average amount of Rs 2347 on their first purchase of products as compared to others with Rs 1626.
The key drivers for consumers to go online for shopping were cash back schemes, cash on delivery, faster delivery, substantial discount offers as compared to market or retail, and easy accessibility to numerous brands.
On the other hand, it is the feel of the product, easy and early access to the product, trust factors and more that stopped the consumer from shopping online.