The general scenario of Online Retailing in India, 2015. The industry data, key tends and challenges faced by the industry.

1. Dynamics of Online Retailing in
India
Rohita Dwivedi

2. Online Retailing
• Retailing conducted online, over the Internet
• The online retail industry was worth US$3.59
billion in 2013 is expected to be at US$ 10.68
billion by 2016 and 17.52 billion US$ by 2018

3. The Growing Base
• From 130 million online users in Dec 2012 with
10% engaging in online transactions
• The base is expected to cross 350 million by
Dec 2015 with larger % indulging in online
purchases (currently ranked no. 2 after China)

4. Other
Growth
Factors
• Increasing speed of broadband connection
• Increasing use of smart phones (164 million )
out of 940 million mobile phone subscriptions;
estimated 2.7 billion smart phone users by
2017 (http://dazeinfo.com/2015/07/04/global-
smartphone-sales-2015-2017-india-will-
surpass-us-report/)
• Increasing penetration of venture capitalists/
private equity funded online retailers startups

5. Other Growth Factors…
• Rising standards of living as result of fast
decline in poverty rate.
• Availability of much wider product range
(including long tail and Direct Imports)
compared to what is available at brick and
mortar retailers.
• Competitive prices compared to brick and
mortar retail driven by disintermediation and
reduced inventory and real estate costs.
• Increased usage of online classified sites, with

6. Online Retailers

7. Preferred Online Retailers

8. Reasons for Online Purchase

9. Top Platform for Shopping

10. Categories sold

11. Frequency of Shopping

12. Average Monthly Spend

13. Game Changer
Cash On Delivery
• At present, COD is the preferred payment
mode for close to 55-60% of all online
transactions in the fashion and lifestyle
segment in India.

14. …..Is Online Retailing Ailing
Y-O-Y Growth %
2012-2013 55.6%
2013-2014 47.6%
2014-2015 45.2%

15. Is Online Retailing Ailing…
• Only 12% of our population has ever made
online purchase till date
• By 2018, 29% of our population is estimated to
buy
• China 55.2%
• Japan 81%

16. What Ails Online Retailing in India
• Government Policy (no FDI in B2C and hence
marketplace model)
• COD and High Rate of Return (17-25 %), with
COD (40%)
http://www.businesstoday.in/magazine/cover-
story/cash-on-delivery-impact-on-e-
commerce-companies-
customers/story/202680.html
• Touch & Feel Factor
• Cybercrime