\nEstimated at about $13 billion, the e-commerce industry is dominated by the online travel segment, which, according to a KPMG in India report, accounted for 71 per cent of total transactions.
\n\u201cGlobally, in a difficult economic environment, alternative medium sales rise,\u201d Gaurav Gupta, Senior Director, Deloitte in India, a leading consultancy, said. \u201cE-commerce is one such as people are keen on better deals and bargains.\u201d
\nUnderstandably, growth of e-commerce depends on Internet penetration and literacy factors, which explain India\u2019s slower trajectory.
\n\u201cDevelopment of e-commerce is also predicated on the expectations of the middle class,\u201d Ashwin Vellody, partner, KPMG in India, said. \u201cThe main metros will grow but faster rates will come from Tier 2 cities where access remains the issue. On the supply side, companies have to sort out logistics like warehousing strategically,\u201d he added.
\nIn mature markets, e-commerce growth impacts brick and mortar (B&M) retailers but industry experts believe that over the next decade, B&M retailers will increasingly move online and 15-20 per cent of sales will shift in areas like OTC (over the counter) medication, books and travel.
\n\u201cWe believe the future of e-commerce is on \u2018mobile\u2019,\u201d Rajesh Magow, Co-founder & CEO\u2014India MakeMyTrip.com, told this correspondent. \u201cMobile is one of our fastest growing channels and currently accounts for over 20 per cent of all our traffic. Most of these bookings are from smartphones.\u201d
\nGiven the competition, companies are trying out different models.
\n\u201cIndia is a huge, attractive market but what keeps me awake is the need to innovate and maintain my position in the new part of the market that is expanding,\u201d Pranay Chulet, CEO & MD, Quikr said. The world is going multi-channel and e-tailing is just another selling channel, Kumar Rajagopalan, CEO, Retailers Association of India (RAI), said.
\n\u201cBeing new, experimentation will continue. Companies are focused on growth, acquisition and investments rather than profitability. That will come and thereafter there will certainly be a consolidation.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"