India to surpass United State in eCommerce
As of today, about 350 million Indians use internet. This number is estimated almost double to 600 million by 2020. Google’s Next Billions Users states that every second India gets three new internet users.
Image: Worldpay Global Payment Report statistics
Global Payments Report in its recent report said that by 2034, Indian eCommerce market will grow to $2039, making it larger than that of US and second only to China.
The predictions are audacious as the report also said that today Indian eCommerce accounts for only 1% of money spent in the sector.
The report estimates theto grow at the rate of 28% per year for next four years. Thus, it pegs the market to be worth $63.7 billion by 2020.
With the current speed of growth, the internet users in India will rise 250 million higher than today i.e 750 million Indians will use internet by that period and that number, it suggests means a tremendous push for the internet commerce. Many of these new users will be mobile-first users, which means that they will access the internet not through computers but through their mobiles. The report points out the fastest growing smartphone market and cheap internet access as the reason for this growth. It compared India’s internet data plans to be twice as cheap as China’s.
The above projections are driven by the fact that Indian market is changing technologically and the rising average income and favourable demographics will be the driving force for the e-commerce market here.
The report pointed out that a research by Korn Ferry projects consumer spending in India to rise significantly and 70% of the population being below 35, the internet business will see incredible growth with the help of this largest youth population in the world.
According to the Worldpay projections, by 2034, China will account for 50% of global online retail market spending, which will be its peak. Thus, China and India together will make Asia the centre of explosive eCommerce growth.
Rising use of mobile internet, young consumers, availability of 3G and 4G at affordable prices support the audacious claims made by the report. The report took note of people switching from 3G to 4G and that smartphone penetration increased by 23% in 2015.
It also noted that in India, people prefer primarily cash on delivery and that confidence in cards and sharing data is rising, it proposed that merchants must provide a cash on delivery option to the consumers.