If you do Ecommerce you do NOT want to miss the India train.
India is starting to heat up Ecommerce. So much so Amazon has dumped $5 billion into battling Flipkart. India is the next great online battleground.
And it's all do to our favorite gadget:
All these new mobile activations are turning India into an Ecommerce giant. The 6th largest giant to be exact ;)
Check out the infographic for all the facts on why India is next:
What India's $75 billion Ecommerce Market Looks Like In The Year 2021
By 2021, India will have 549 million Internet users.
This is only 39% of the total country population making it the second biggest Internet Audience. Only behind China.
Even though it's the second biggest audience it will only be the 6th biggest Ecommerce market. However, this is a 7 spot jump from 2016.
What about the Indian people?
One record India will have is being the BIGGEST Facebook audience on the planet. This is good news for advertisers.
The internet will still be male dominated in India. The breakdown comes out to 60% Male and 40% Female. There is reason to celebrate equality as Women will gain 10 percentage points by 2021 compared to 2016.
Mobile is the Future of India
Double digit mobile adoption will get India 986 million mobile phone. Only 50% are estimated to be "smartphones".
Personally, we think that number is high but that is what the "experts" say.
70% of total Internet usage (Apps & browsing) will be done via a mobile device. 80% of those mobiles will run Android.
When Will People Like To Buy?
Believe it or not: People like to shope during working hours.
60% of online purchases happen during business hours. Between 12-5pm and on Wed & Thurs are the most popular.
Will Cash on Delivery Still be Popular?
Cash on Delivery (COD) will still be popular with Indians but less so by 2021. It will drop from 60% of purchases down to 45%.
Mobile Wallets & Credits Cards will pick up steam and grab market share.
Offline Will Still Be Huge
Most purchasing will still happen outside of the internet even by 2021.
Ecommerce will only account for 4.8% of all retail. Good news is that is a 2x increase from 2015.
$70 billion of offline sales will get influenced by consumers first researching online.
This is why you hear companies always talking about Omnichannel marketing.
Big Cities will still Dominate, but Tier 2 is where the growth is
Tier 1 cities in India will still account for 86% of online purchases. Tier 2 will only account for 8% of purchases but that is a doubling compared to 2016.
Delhi alone accounts for 36.9% of Ecommerce in India
Who Will Be The Big Winners?
- Home Furnishings
- Baby Care
- Online Advertising (2.6x increase from 2016)
- Logistics (2x increase from 2016)
- Rocket Internet (German investment company)
- Domino's Pizza
What Could Still Improve?
Get more women online
Men will still outnumber Women 3:1 as internet users.
Increase Online Trust
55% of buyers don't trust the quality of onlines goods.
Speed Up the Internet
India has the slowest Internet Speeds in Southeast Asia.
The Future is Bright
With only 4% of total retail sales being online in 2021 there is a lot of room to grow.
This is 3x less then other developed countries.
Special thanks to the industry report from Sokrati. If you are looking to sell stuff online you should check them out to see if they can help.
Let us know what you think in the comments.
If you liked the graphic please share it!