Online retail market spending is likely to jump more than 10 times to $14 billion in the next five years in the seven major cities, according to property consultant Knight Frank. The seven cities are Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad and Pune. Also Read - Issues around cyber laws could pose problems for e-commerce sector in India: PwC
“The total retail spending in the top seven cities of India is projected to more than double from Rs 3,586 billion ($59.8 billion) in 2014 to Rs 7,650 billion ($127.5 billion) in 2019,” Knight Frank India said in a report. Knight Frank in association with the Retailers Association of India today launched the first edition of its flagship report on the retail sector, ‘Think India. Think Retail’. “E-tail market spending in India?s top seven cities is likely to grow more than 10 times from Rs 72 billion ($1.2 billion) in 2014 to Rs 839 billion ($14 billion) in 2019, resulting in an annual growth rate of 64 percent,” the report said. Also Read - RMCL to raise over Rs 100 crore to fund ecommerce expansion
While the share of E-tail is expected to jump by more than five times from 2 percent in 2014 to 11 percent in 2019, the share of brick and mortar modern retail is expected to fall from 17 percent to 13 percent during the same period. The consultant noted that e-tail will gain primarily at the expense of brick and mortar modern retail, but it will attract consumers from non-modern retail too. Non-modern retail’s share in the total retail spending is estimated to fall from 81 percent in 2014 to 76 percent by 2019. Knight Frank India CMD Shishir Baijal said: “Over the last decade, the?concept of shopping has undergone a sea change in terms of format and consumer buying behavior, ushering in a revolution across the country.” Also Read - Online market shakes up physical format in India's retail space
With an ever expanding domestic market and a forecast growth rate of 15 percent a year, he said the Indian retailing scene seems extremely attractive for stakeholders and investors alike. “The e-commerce industry is booming like never before and this coupled with high disposable incomes have led to a spurt in the internet culture that aims to change the dynamics of the Brick & Mortar modern retail segment,” Baijal added.