Digital commerce in India is expected to reach Rs 2.37 lakh crore by December 2018, driven by strong growth in segments like travel, e-commerce and utility services, Internet and Mobile Association of India (IAMAI) Thursday said.
The industry body, in its report with IMRB Kantar, said the digital commerce market in India is estimated to have grown at a CAGR of 34 per cent between December 2011 and December 2017 to reach Rs 2.04 lakh crore by the end of December 2017.
“It is estimated to reach Rs 2,37,124 crore by December 2018,” the report added.
As per the report, the online travel industry accounted for 54 per cent share (Rs 1.10 lakh crore) of the digital commerce market. Within the travel category, domestic air ticket and railways booking continued to be among top contributors, while bus/cab booking contributed about Rs 5,174 crore.
In the non-travel segment, e-tail contributed Rs 73,845 crore, followed by utility services (Rs 10,201 crore), and matrimony and classifieds (Rs 3,689 crore).
Other online service market — which includes online bookings done for entertainment, online grocery and online food delivery — reached close to Rs 6,060 crore.
“Online grocery delivery is the top contributor within this segment with a market value of Rs 2,200 crore. This overall segment is expected to reach Rs 7,800 crore in December 2018,” it added.
The report said as on December 2017, an estimated 295 million people were online in urban India. With the prices of mobile internet seeing a rapid drop, there has been a significant increase in the number of online users and the level of online activity and engagement.
“The growth of internet has created various online avenues and digital shopping is one such avenue where the activity and engagement levels have seen an increase. The Indian shopping ecosystem has been witnessing a massive disruption lately,” the report said.
While traditional method of shopping still continues to be strong, shopping using a digital medium is also catching up fast with Indian shoppers, it noted.
Source: The Hindu