1. By Mona Swarnakar
23/04/2013

2. Table of Contents
 Online Shopping Market –
I.
Number of users and revenue
II. Comparison with the global market
III. Market forecast
 Major players –
I.
II.
Snapshot of the leading players
Market share of players
 Drivers, trends and challenges in the market –
I. Drivers
II. Trends
III. Challenges
 Bibliography

3. Current Market - Snapshot
Online shopping can be considered a sub-category of e-commerce
Online shopping revenue of India was $14 billion in 2012 and number of online
shopping users was 19.2 million (2012)
Online shopping has doubled to $14 billon in 2012 from $6.3 billion in 2011. This figure
is likely to reach $38 million by 2015, at CAGR of 39.5 percent
It is estimated, that around 27 million are active mobile Internet users (in India), and
currently 4 percent are buying products through mobiles. In the next four years time
it can go up to 20 percent.
Increasing Internet penetration and availability of more payment options boosted
the online shopping market in 2012.

4. (Percentage of internet users that buy online)
Online buyers
Online shopping equality
Chile
Ready & willing
Mexico
Saudi Arabia
Brazil
China
UAE
Russia
India
Philippines
Infrastructure impediment
Hesitate Shopper
Internet penetration
(Percentage of population that uses internet)
India is in Infrastructure disorder as internet penetration and supply chain infrastructure for
online shopping are lower than global standards, still the sales for online shopping in India (as the
size of the bubble indicates)
India is a big marketplace (1.2 Bn people) but infrastructure—technology, finance, logistics—still
needs to improve, and only 8 percent of the population uses the Internet.

5. Online shopping sales shares
worldwide, by region, 2011-2015
35.9
27.9
30.5
28
33.5
3.1 5.1
2011
33.4
31.5
25.7
26.9
3.4
5.7
2012
Asia
North America
3.5
38.2
36.2
29.7
24.3
5.9
2013
Western Europe
3.6
28.8
23.4
6.2
2014
Latin America
3.6
6
2015
others
As the above graph shows, currently North America has the highest share of online shoppers.
However, multiple drivers such as increasing internet penetration, availability of more categories
in websites, and entrance of new companies in the online shopping market place is expected to
result in Asia becoming the leading online shopping destination.
Asia’s share is expected to increase from 27.9 percent in 2011 to 38.2 percent in 2015.

6. Top 5 countries ranked by online
shopping sales, 2011-2013 (billions)
$384.80
$343.43
$301.69
$181.62
$110.04
$56.69
US
$124.76
$109.03
$141.53
$127.82
$112.78
$140.35
$38.08
China
UK
2011
Japan
2012
$47.00 $53.00
Germany
2013
While the US is the clear leader in the online shopping space, China is among the strongest
growing countries; the US is expected to witness a growth of 12 percent for 2012-2013
period, while China is expected to witness a growth of 65 percent for the same period.

7. Online shoppers Asia pacific, by
country, 2011-2015
(Million)
2011
2012
2013
2014
2015
China
178.4
219.8
270.9
374.9
423.4
Japan
70.2
73.3
75.6
78.2
79.2
India
14.5
19.2
24.6
36.2
41.8
South Korea
22.2
23.3
24.4
26.3
26.9
9.8
10.2
10.6
11.2
11.5
2
3.1
4.6
7.4
8.7
37.6
42.2
47
57.3
62.1
Australia
Indonesia
Others
•
China boasts the highest number of people who buy goods online in the world—nearly 220
million in 2012
•
India's online shopping growing fast.
•
In India, online shoppers will increase by more than three times by 2015, jumping from 14.5
millions in 2011 to 41.8 millions in 2015.

8. Top states, cities for online shopping in India
Top States
Mature Cities
Destinations with
growth prospects
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
1.
2.
3.
4.
5.
6.
7.
8.
9.
NCR
Maharashtra
Uttar Pradesh
Haryana
Gujarat
AP
Tamil Nadu
Karnataka
Punjab
Rajasthan
Delhi-NCR
Bangalore
Chennai
Hyderabad
Mumbai
Pune
Ahmedabad
Jaipur
Kolkata
Lucknow
Patiala
Bhatinda
Faizabad
Panipat
Dehradun
Guwahati
Rajkot
Kota
Ernakulam

9. Online shopping growth
chart
Future growth of online shopping in India
•
•
2009
2010 2011 2012 2013E 2014E 2015E
The online shopping
expected growth rate
is 39.5 percent from
2012 to 2015 in India.
Online shopping
revenue in India
estimated to touch
$38 million by 2015

10. Table of Contents
 Online Shopping Market –
I. Number of users and revenue
II. Comparison with the global market
III. Market forecast
 Major players –
I.
II.
Market share of players
Snapshot of the leading players
 Drivers, trends and challenges in the market –
I. Drivers
II. Trends
III. Challenges
 Bibliography

11. Market share of Major players
20%
35%
4%
6%
10%
25%
ebay
flipkart
Snapdeal
future
Yebhi.com
Others

12. Major Players
Profile: eBay.in is the Indian version of the popular online shopping
portal eBay.com – world’s online marketplace. eBay has a diverse
and passionate community of individuals and small businesses.
Founder : Pierre Omidyar
Revenue: 1407 crores in 2012
Head office: Mumbai
Profile: This Indian e-commerce company started with online sales of
books in 2007 and later it entered to consumer electronic goods and
various other ranges of products.
Founder : Sachin and Binny Bansal
Revenue: 1200 crores in 2012
Head office: Bangalore

13. Major Players
Profile: Snapdeal started on 2010. This sites offers best deals for
almost all kinds of products. its provides all types of services to the
customers.
Founder : Kunal Bahl and Rohit Bansal
Revenue: 500 crores in 2012
Head office: New Delhi
Profile: This is one among the largest retailers in India and also a part of
the
Future
Group
.There
are
items
ranging
from
mobile, electronics, appliances, home entertainment, home
décor, consumer durables and cameras.
Founder : Kishore Biyan
Revenue: 360 crores in 2012
Head office: Mumbai

14. Major Players
Profile: Homeshop18 started on 2008. Here you find large range
appliances, kitchen, cameras, mobiles, laptops, online, gifts and more.
HomeShop18 has also launched India’s first 24 hour Home Shopping
TV channel.
Founder : Sundeep Malhotra
Revenue: 89.6 crores in 2012
Head office: Noida
Profile: yebhi.com started on 2009. Yebhi.com is an Indian Online
shopping E-commerce portal for Home, Lifestyle & Fashion eretailer.
Founder : Sanjeev Aggrawal
Revenue: 100 crores in 2012
Head office: Gurgaon, Haryana

15. Other players in India

16. Top travel sites among internet
users in India in 2012
2.90%
3%
Indian Railways is the number one
travel site used by the Indian
consumers and it covers 19.2 per cent
of online travel booking market. After
Indian Railway makemytrip.com and
yatra.com came in second and third
position in 2012.
3.90%
4.60%
8.30%
11.60%
19.20%

17. Detailed category division in India
Apparels and accessories
35%
Consumer electronics
30%
Books
14%
Beauty & personal care
10%
Home & furnishings
Healthcare
Baby products
6%
3%
2%
Among the all categories, Apparels and accessories category observed the most growth in the previous
years and is the number one online shopping category. Also growth is increasing in baby
products, health and nutrition, etc. Consumer electronics comes in second number, here buyers are
increasingly purchasing mobiles, tabs, electric cookware, etc. Most of the book lovers like to buy books
online at good discount rate. Flipkart in the number one player in selling online books in India.

18. Table of Contents
 Online Shopping Market –
I. Number of users and revenue
II. Comparison with the global market
III. Market forecast
 Major players –
I.
II.
Market share of players
Snapshot of the leading players
 Drivers, trends and challenges in the market –
I.
Drivers
II. Trends
III. Challenges
 Bibliography

19. Key Drivers
 Increased broadband penetration & usage
 Increasing standard of living and buying power of middle class families
 Increasing usage of credit and debit cards coupled with a growing young population who spend
significant time on the internet
 Social networking sites likes Facebook, twitter are very much influencing in driving online retail in
India. Many vendors are using it as a strong tool to get marketing and sales influence
 Increased usage of online classified & auction portals and their growing awareness
 Busy and shifting lifestyles and difficulty in traditional means of shopping
 Top drivers of online shopping growth are faster delivery, Cash on Delivery facility, discounted
rates, access to branded products and cash-back guarantee on faulty goods

20. Trends:
 9 out of 10 online buyers will spend more money in 2013 as compared to previous year.
 Non Metro buyers are increasingly buying online with their contribution increasing much more than
the metro online buyers.
 Online buyers will use Mobile Phones and tablets more to make purchases online than what they
did previously.
 Among the all categories, Apparels and accessories category witnessed the most growth in the
previous years.
 As compared to electronics, emerging categories like baby products, health and nutrition will see
more growth in near future.
 Travel and ticketing will be the most popular category for purchases in 2013 and beyond.

21. Challenges:
India's consumer buying behavior is still slow.
Lack of proper advertisement and marketing
incapability to
create a brand image to customers.
Online websites are still not so good to attract buyers.
Lack of seriousness in maintaining their websites.
The web portals don’t support all modes of online transaction
which cause transaction frauds.
Buyers gather information from various sites, compare and then
buy products. buyers spends more time to buy one product.
Less finance buyers may wait more before buying.
Consumer wait for special deal, like free home delivery.

22. Table of Contents
 Online Shopping Market –
I. Number of users and revenue
II. Comparison with the global market
III. Market forecast
 Major players –
I.
II.
Market share of players
Snapshot of the leading players
 Drivers, trends and challenges in the market –
I. Drivers
II. Trends
III. Challenges
 Bibliography

23. Bibliography
http://www.emarketer.com/Article/Ecommerce-Sales-Topped-1-Trillion-FirstTime-2012/1009649
http://www.iamwire.com/2012/06/india-ranks-5th-in-global-retail-developmentindex-but-where-in-global-ecommerce-index-a-report-by-atkearney/
http://www.iamwire.com/2012/04/india-to-be-the-fastest-growing-e-commercemarket-in-asia-pacific-market-set-to-grow-to-8-8-billion-by-2016/
http://www.iamai.in/Upload/Research/9320123264601/ICube_2012_Rural_Interne
t_Final_62.pdf
http://www.zdnet.com/in/online-shopping-catching-fancy-of-indian-consumers7000010470/

24. Appendix - Market Size methodology
1.22 billion (Population of India in
2012)
Literacy rate of India is 79.5%
Computer literate: 70
million
Total internet
users:108.5
Total online
million
shopping users:
19.2 million
Top Down approach:
Market sizing of online shopping

25. Appendix - Internet users &
penetration in India
(Million)
194.8
155.8
175.2
133.1
108.5
83.2
2011
2012
2013
2014
2015
2016