Assocham: India’s e-commerce to reach $38 billion in 2016

A study by Assocham notes that the e-commerce industry in India is set for a further boom - to reach $38 billion mark this year from $23 billion revenues it generated in 2015, reports say.

The study also notes that the overall environment is encouraging with factors like - increase in internet and mobile penetration, the increased receptiveness towards online payments and favourable demographics’ which have paved a platform for companies to connect with their customers.

Geographically, in India, Mumbai is the top most in terms of online shopping, with by Delhi, Ahmedabad, Bengaluru and Kolkata following in line.

The study also pointed out that buying trends in 2015 were encouraged propelled by the huge discounts, but this year the increase in fuel prices and greater online choices will impact the e-commerce industry in 2016, reports say. The mobile commerce (m-commerce) sector grew as a ‘stable’ supplement to the e-commerce industry. Industry leaders note that m-commerce could contribute up to 70 per cent of their total revenues, as per reports. In 2015, 78 percent of shopping queries were from mobile devices, as per Assocham, reports say.

Last year, apparels received the highest growth rate, about 69.5 percent over 2014, followed by electronics, up 62 percent, baby care products up 53 percent, beauty and personal care products at 52 percent and home furnishings at 49 per cent, reports say. The products that were sold most in 2015 include mobile phones, iPad and accessories, MP3 players, digital cameras and jewellery, among others, as per reports.