Indian e-commerce expected to do a record sales of 69 lakh crores ($1082 billion) in 2017. Research: Saurabh Goenka; Creatives: Ishu Vaid
The festival season in India starting from Ganesh Chaturthi to Diwali and Chatt is a golden period for e-commerce players. In 2016 the industry bagged a maximum increase of 140 per cent in average sales, three weeks before Diwali.
This year again with Flipkart's 'Big Billion Days' and Amazon's, 'Great Indian Sale' between 20th to 24th September are placed almost 3 weeks before Diwali with an expectation of higher sales than last year.
Mobile phones, tablets and accessories were the most preferred product category during 2016 festival sales. 'Apparel and Accessories' and 'Shoes and Footwear' were the other two most popular product categories.
Chinese mobile phones lead the way with maximum share in online sales in India. Every second phone sold in the country are from one of the four Chinese brands namely Xiaomi, Oppo, Vivo and Lenovo.
Indian e-commerce industry clocked sales of Rs. 46 lakh crore ($ 718 billion) in 2014 and since has been growing at a rate of 15 per cent every year.
In 2017 the industry is expecting 69 lakh crore ($ 1082 billion) in merchandise sales. With the festival season being one of the key drivers of this revenue, all the players take them very seriously.
The global e-commerce sales stood at 1408 lack crores ($ 22 trillion) in 2016. The US with the largest market share contributed Rs. 317 lakh crores ($ 4953 billion) to this sales figure.
Indian e-commerce industry although being 5 times smaller than US and China is expected to record sales of 69 lakh crore ($ 1082 billion) in 2017. The Black Friday sales in the USA is expected to generate around $ 2.05 billion for e-commerce.
It is estimated that more than 6 crore costumers shopped online in 2016 spending Rs. 12,000 crore. These figures are expected to move up this year.
The maximum revenue came from Delhi and the top 6 cities mentioned above contributed to 51 per cent of the online sales in the country.
As per an estimate, each person in top 7 metros cities spends Rs 858 online on an average while people in the next 25 cities, spend only Rs. 282 on an average.
Tier-3 cities which have seen an increase in the attention of e-commerce players bought around Rs. 480 worth of products online, more than various top cities.
With the downfall of Snapdeal; Flipkart and Amazon are now the major players in Indian e-commerce industry. Last year Flipkart and Amazon clocked sales of Rs. 3200 ($ 500 million) and Rs. 2560 crore ($400 million) respectively during their festival sales.
In 2017, with more than 50 per cent increase, festival' gross merchandise sales' are expected to range from Rs. 7680 ($ 1.2 billion) to Rs. 9600 crore ($ 1.5 billion) for the top two players.