Over 120 million Indians likely to shop online in 2018

Over 120 million Indian consumers are likely to shop online in 2018, clocking annual growth of 115 percent as the e-commerce platforms slug it out with discounts in a wide range of items including clothes, says a study. As many as 108 million consumers shopped online in 2017 even as phones are becoming the preferred choice of device for online sales.

Over 60-65 per cent of online shoppers would opt for placing their orders on mobile phones from the present 40-45 per cent, according to ASSOCHAM-Resurgent joint study projection. As many as 89 per cent of the consumers covered in the study are heavy users of the internet. The respondents were across Delhi, Mumbai, Kolkata, Bangalore, Ahmedabad, Hyderabad and Pune among others.

"Since the base is still quite low, there is a huge scope for growth year on year for quite some time. With improvement in logistics and more and more delivery channels, the online shopping is bound to grow. No wonder, a huge amount of foreign investment is coming in the sector. It has become a multi-billion investment business. Investment in back end delivery channels, brand building, consumer research and building trade partners would be the key drivers," said ASSOCHAM secretary general DS Rawat. 

Online ticket buyers were also seen to be more comfortable with the use of debit cards (23%), credit card (17%) and cash on delivery (58%). For regular internet users - cash on delivery was the most preferred mode of payment (74%), followed by debit card (18%) & credit card (5%), noted the study.

In terms of motivators to shop online, the consumers’ highlighted cash back guarantee as the number one benefit, ability to give cash on delivery, fast delivery, great deals and access to branded products. 

The consumers also highlighted some barriers that deter them from shopping online - the number one factor was inability to touch and try the goods before purchase, fear of faulty products, fear of posting their personal and financial details online and the inability to bargain were cited among the other reasons. Online apparel sales continue to capture a greater share of Indian retail e-commerce as a category along with the computer and consumer electronics sector, fuelling the overall market growth.

There is a surge in the number of people shopping on mobile across India with tier II and III cities displaying increased dominance. In fact, 50 per cent of the traffic is coming from mobile and a majority of them are first time customers, adds the paper, stated the study.

The year 2018 will see large scale growth in the Indian e-commerce sector with increased participation from people across the country. This industry will continue to drive more employment opportunities and contribute towards creating more entrepreneurs through the e-commerce marketplace model, according to the study.