India to overtake US as world’s largest e-commerce market: Study

[Dungeness]

India to overtake US as world’s largest e-commerce market: Study
The report said the e-commerce market is expected to grow exponentially with emerging markets like India leading the charge.

PTI | New Delhi | Publishedecember 5, 2016 9:49 pm

The report said much of India’s eCommerce growth will be the result of rising internet penetration as roughly 350 million Indian citizens are already online and that number is expected to nearly double to 600 million by 2020.

The Indian e-commerce market is set to overtake the US and become the second largest in the world in less than two decades, going head-to-head with China for the numero uno position, according to a report by global payments firm Worldpay. The report said the e-commerce market is expected to grow exponentially with emerging markets leading the charge –particularly India, where the segment is predicted to mature by 28 per cent per year from 2016 to 2020.

“According to Worldpay projections, India will be the world’s second largest e-commerce market by 2034, thanks to massive surges in internet penetration, a swelling millennial population and the rising uptake of mobile phones,” it added.

Ron Kalifa, Vice Chairman at Worldpay, said the research found a number of trends that point to India’s potential for “astounding e-commerce growth in the next two decades”.

“The market is predicted to reach USD 63.7 billion by 2020 and overtake the US by 2034. This enormous development will in turn open up enormous opportunities for companies who sell online,” he said.

However, it is essential that merchants stake their claim today in order to win over India’s commerce-hungry population and capitalise on future e-commerce growth, he added.

“Leading companies such as Amazon and Alibaba are already making their move, indicating a clear incentive for merchants to gain their foothold within India’s budding eCommerce market as soon as possible,” Kalifa said.

Worldpay analysed 30 markets around the world, including India, China, Hong Kong, South Korea, Singapore and Australia in Asia-Pacific. The Global Payments Report is compiled using a combination of Worldpay’s data and insights as well as external findings and secondary data.

The report said much of India’s eCommerce growth will be the result of rising internet penetration as roughly 350 million Indian citizens are already online and that number is expected to nearly double to 600 million by 2020.

Another major factor driving e-commerce growth in India is the huge uptake of mobile phones. India is the world’s biggest consumer of mobile phones with the price of data plans running two times cheaper than in China and three times cheaper than in the United States, it said.

As the country’s middle class switches over to 3G and 4G networks, both offered at affordable prices, India is expected to see more mobile shopping, especially amongst millennials.

“Young people shopping via smartphones are already responsible for sharp increases in India’s online spend; and with 70 per cent of the population below the age of 35, millennials are expected to continue driving rapid digitisation even further,” it said.

http://indianexpress.com/article/bu...rlds-largest-e-commerce-market-study-4412223/

 

[tranquilium]

India to overtake US as world’s largest e-commerce market: Study
The report said the e-commerce market is expected to grow exponentially with emerging markets like India leading the charge.

PTI | New Delhi | Publishedecember 5, 2016 9:49 pm

The report said much of India’s eCommerce growth will be the result of rising internet penetration as roughly 350 million Indian citizens are already online and that number is expected to nearly double to 600 million by 2020.

The Indian e-commerce market is set to overtake the US and become the second largest in the world in less than two decades, going head-to-head with China for the numero uno position, according to a report by global payments firm Worldpay. The report said the e-commerce market is expected to grow exponentially with emerging markets leading the charge –particularly India, where the segment is predicted to mature by 28 per cent per year from 2016 to 2020.

“According to Worldpay projections, India will be the world’s second largest e-commerce market by 2034, thanks to massive surges in internet penetration, a swelling millennial population and the rising uptake of mobile phones,” it added.

Ron Kalifa, Vice Chairman at Worldpay, said the research found a number of trends that point to India’s potential for “astounding e-commerce growth in the next two decades”.

“The market is predicted to reach USD 63.7 billion by 2020 and overtake the US by 2034. This enormous development will in turn open up enormous opportunities for companies who sell online,” he said.

However, it is essential that merchants stake their claim today in order to win over India’s commerce-hungry population and capitalise on future e-commerce growth, he added.

“Leading companies such as Amazon and Alibaba are already making their move, indicating a clear incentive for merchants to gain their foothold within India’s budding eCommerce market as soon as possible,” Kalifa said.

Worldpay analysed 30 markets around the world, including India, China, Hong Kong, South Korea, Singapore and Australia in Asia-Pacific. The Global Payments Report is compiled using a combination of Worldpay’s data and insights as well as external findings and secondary data.

The report said much of India’s eCommerce growth will be the result of rising internet penetration as roughly 350 million Indian citizens are already online and that number is expected to nearly double to 600 million by 2020.

Another major factor driving e-commerce growth in India is the huge uptake of mobile phones. India is the world’s biggest consumer of mobile phones with the price of data plans running two times cheaper than in China and three times cheaper than in the United States, it said.

As the country’s middle class switches over to 3G and 4G networks, both offered at affordable prices, India is expected to see more mobile shopping, especially amongst millennials.

“Young people shopping via smartphones are already responsible for sharp increases in India’s online spend; and with 70 per cent of the population below the age of 35, millennials are expected to continue driving rapid digitisation even further,” it said.

http://indianexpress.com/article/bu...rlds-largest-e-commerce-market-study-4412223/

Yes, India E-Commerce market, run by Alibaba and Amazon...I am not sure if this article is actually making jokes at Indian's expense.

 

[neem456]

Yes, India E-Commerce market, run by Alibaba and Amazon...I am not sure if this article is actually making jokes at Indian's expense.

alibaba ? nobody uses that for daily shopping.
Its run by flipkart,amazon,snapdeal,jabong,ebay etc

 

[kbd-raaf]

alibaba ? nobody uses that for daily shopping.
Its run by flipkart,amazon,snapdeal,jabong,ebay etc

Flipkart etc is partly owned by companies like Alibaba. Silly statement to make given that Alibaba was funded by Yahoo, etc back in the day.

 

[tranquilium]

alibaba ? nobody uses that for daily shopping.
Its run by flipkart,amazon,snapdeal,jabong,ebay etc

I think the original poster posted the article as a joke, but I will humor you and get into a bit actual disscussion.

E-commerce, in many sense, is exactly like traditional economic activities----basically, it is accumulated result of a nation's overall development level. For example, for e-commerce delieveries to made to destination on time, the nation must possess a robust transportation system. For transactions flow to occur smoothly, there must also be a correspondingly robust electronic financial system, appropriate monitoring agency to ensure safe and clean transaction. The quality control, data accessment ability of the government must also be sufficient to ensure the activity is health. So on and so forth. Bascially, to have a large e-comerce, the nation must already possess an equally large real economy.

https://trellis.co/blog/top-10-ecommerce-markets-by-country/

The link shows that the countries with the largest e-commerce are pretty much also the countries with the largest economy. (Though India is currently performing below the level, this is mostly because India has the poorest industrial infrastructure among the top economies) So by saying India will become the largest e-commerce market by 2034, it is basically saying India will become the strongest economy on earth and the nation with the best infrastructure in 18 years. I don't know about you, but I think that is going way above "over-optimistic".

 

[samsara]

I think the original poster posted the article as a joke, but I will humor you and get into a bit actual disscussion.
...
So by saying India will become the largest e-commerce market by 2034, it is basically saying India will become the strongest economy on earth and the nation with the best infrastructure in 18 years. I don't know about you, but I think that is going way above "over-optimistic".

HOWEVER, the 18-year in today's instant-prone world is a pretty long period, very hard to predict that far.

So basically I will just accept it if any one ever bother to make any statement regarding this bla bla bla will happen, realize in NEXT 18 YEARS or so...

I think it's meaningless to argue the remote future... as humanity and civilization will be rolling over time, and the new realities will reveal themselves as always...

The next 5-year or at most 10-year time-span may make much more sense when discussing the future, imo.

 

[Nan Yang]

The report said much of India’s eCommerce growth will be the result of rising internet penetration as roughly 350 million Indian citizens are already online and that number is expected to nearly double to 600 million by 2020.

Really ?

 

[gurbakash]

Must be true..!
I havent bought any household appliance, Phone, accessories through traditional stores in last 4 years. By the way its Flipkart, Amazon,Snapdeal, Paytm, Myntra, Jabong who are real players. Recently i ordered a pair of Asics shoes through Myntra at 11 AM. Paid by CC. I was surprised when i got delivered msg before i reach home... These online giants are doing really wonderful...

 

[my2cents]

Really ?

 

[Dungeness]

“The market is predicted to reach USD 63.7 billion by 2020 and overtake the US by 2034. This enormous development will in turn open up enormous opportunities for companies who sell online,” he said.

India's eCommerce WILL reach $63.7 Billion by 2020, while Chin'a e-commerce is already 15 times that this year. I am wondering how India can possibly be "World's Largest e-Commerce Market" after taking over US. It doesn't even show up in top-5 now.

So China is Out-of-this-world?

 

[T-72]

India's eCommerce WILL reach $63.7 Billion by 2020, while Chin'a e-commerce is already 15 times that this year. I am wondering how India can possibly be "World's Largest e-Commerce Market". It doesn't even show up in top-5.

For India, we're talking about the consumer retail sales aspect of e-commerce in specific, but transactions for other services are expected to pick up a lot of speed in the short term too.

 

[Dungeness]

For India, we're talking about the consumer retail sales aspect of e-commerce in specific, but transactions for other services are expected to pick up a lot of speed in the short term too.

The graph was about the Retail E-Commerce.

 

[T-72]

The graph was about the Retail E-Commerce.

includes products or services.

In India its mostly products (physical goods) not so much services.

 

[my2cents]

India's eCommerce WILL reach $63.7 Billion by 2020, while Chin'a e-commerce is already 15 times that this year. I am wondering how India can possibly be "World's Largest e-Commerce Market". It doesn't even show up in top-5.

Don't get boggled by dumb reporters and their articles. You can't predict what will happen in next 20 years based on the past 5 years. All I can say is the young educated population in India is adapting to new smart technology like a duck to water. It is just a matter of time they all will have smart phones which are internet enabled but how many will shop online depends on their disposal income and other transportation bottlenecks. Rural India is not very well connected and they don't have basic infrastructure like electricity, portable water etc. China went through the same phase not too long ago but your disposal income is many time that of an avg. indian. It is difficult to predict 20 year from now.

 

[Dungeness]

eMarketer Cuts Estimates for Ecommerce in India
New currency rules limit online buying options
December 6, 2016 | Retail & Ecommerce | Mobile

eMarketer sharply reduced its estimates for India’s retail ecommerce sector, reflecting the expected impact of the country’s new currency laws.




In August 2016 eMarketer forecast that retail ecommerce sales in India would grow by more than 75% to reach $23.39 billion this year. eMarketer has now revised this estimate, and predicts growth of 55.5%—still a healthy level but roughly 20 percentage points lower than the previous estimate. eMarketer now expects total retail ecommerce sales in India to reach $16.02 billion this year.

The downgrade largely reflects the Indian government’s recent efforts to crack down on illegally obtained or undeclared money, banning large denominations of the rupee. It is a significant change for the ecommerce sector because cash on delivery payments are a widely used method for digital transactions in India. In a market where the population is relatively “under-banked,” COD becomes the most effective way of buying online.

In response to the currency change, major ecommerce players in the market, including Amazon and Flipkart, have limited or eliminated COD options.

While the shift is suppressing ecommerce in the short term, it could have the effect of spurring ecommerce in the longer term. “This new system will lead more people to use traditional banking services like credit cards, which is a key factor in allowing consumers to buy online,” said Monica Peart, eMarketer’s forecasting director. “But it will take time for this kind societal change to take effect, so our forecast numbers for the out years are still lower than previous estimates.”



Despite the effects of the currency shift, ecommerce is on a sharp upward trajectory in India. Among the many drivers, a key factor is the increase in smartphone users, which has in turn bolstered mobile commerce.

“The ecommerce market in India is fast-becoming a two player race between Flipkart and Amazon,” said Peart. “Amazon India appears poised to win share from other players, in part because it has the deep pockets to support strong discounting and the cost of merchandise returns, which are a common feature of developing ecommerce markets.”

https://www.emarketer.com/Article/eMarketer-Cuts-Estimates-Ecommerce-India/1014800

Don't get boggled by dumb reporters and their articles. You can't predict what will happen in next 20 years based on the past 5 years. All I can say is the young educated population in India is adapting to new smart technology like a duck to water. It is just a matter of time they all will have smart phones which are internet enabled but how many will shop online depends on their disposal income and other transportation bottlenecks. Rural India is not very well connected and they don't have basic infrastructure like electricity, portable water etc. China went through the same phase not too long ago but your disposal income is many time that of an avg. indian. It is difficult to predict 20 year from now.

It is not by reporters. The original article was from Worldpay, and the story is carried by many MSN in India today. I am just puzzled.