Increasing internet penetration and growing preference for online shopping is expected to push the digital commerce market to over Rs 1 lakh crore this year, a report said today. Also Read - Ola to offer free oxygen concentrators to the needy
The digital commerce market in the country had grown 53% to Rs 81,525 crore in 2014, it said. Also Read - Samsung Galaxy S20 FE Long-term Review
This is set to rise further at 33% and cross Rs one lakh crore by the end of 2015, added the joint report by IAMAI and IMRB International. Also Read - OnePlus India partners American Express for cashback deals, EMI offers and more
The digital commerce market has grown steadily from Rs 26,263 crore in 2010 to Rs 47,349 crore in 2012 to Rs 53,301 crore in 2013.
Online travel accounted for Rs 50,050 crore or over 61% of the total market, while the e-tailing segment grew by 29.4%.
“Significantly, e-tailing has grown by around 1.4 times over 2013 and constitute nearly 29% of the overall share,” the report said.
Mobiles and mobile phone accessories contributed the highest (41% or Rs 9,936 crore) in the sales of e-tailing segment, followed by apparels, footwear and personal items (20% or Rs 4,699 crore) in 2014.
Consumer durables, along with kitchen appliances added another 14% or Rs 3,404 crore, the report said.
Digital consumer devices like laptops and tablets, home furnishings and books contributed another Rs 2,780 crore, Rs 1,059 crore and Rs 648 crore, respectively.
The report said 45% respondents, who shopped online, preferred cash on delivery as a mode of payment.
Another 21% said they preferred payment through debit card, 16% credit card, 10% internet banking cent and eight per cent preferred other modes like prepaid cash cards, mobile wallets.
The report said segments like financial services, matrimony and classifieds grew at 5.5% and one per cent in 2014 , respectively.
“The financial services market has grown at a CAGR of 20% since 2010. This market was valued at Rs 4,508 crore. On the other hand, the classifieds market has seen significant growth and is valued at Rs 896 crore by December 2014,” the report said.
Other online services market has grown with a CAGR of 73% since 2010 and was valued at Rs 2,025 crore by 2014.
This segment includes emerging service categories like online entertainment ticketing, online commuting, online food and grocery delivery.
Online food delivery market has seen the maximum growth (40%) over the last year in this segment and it is now valued at Rs 350 crore by the end of 2014, it said.