Online Retail Market in India to Leap Ahead 50%
Published on 12 Jan, 2015
Expected to grow at more than 50% annually, the Indian online retail market is on an upswing. Online retail companies are already adopting aggressive strategies to increase market share thus stirring up intense competition as well.
With approximately 300 million Internet users, India has the third largest Internet user base in the world, but a relatively small online marketplace that constitutes just 0.5% of the overall retail market in the country. Despite incurring losses in the range of USD150 Million – 200 Million in 2013-14, online retail companies are adopting aggressive strategies to increase market share. These companies have received fresh rounds of funding from venture capitalists and banks. Looking at the potential of the Indian market, online retail companies are expected to invest USD1 Billion to USD3 Billion over the next two to three years. We may see more mergers and acquisitions as large retail players are looking to expand their offerings quickly. Indian consumers are the greatest beneficiaries of such competition as it is likely to bring down product prices and enhance the overall online shopping experience.