2012 recap: The etail market in India continues to grow exponentially. As of financial year 2012-13, we at IntelligenceNODE estimated that the online retail sector would reach $780m, whereas popular sources pegged the number at just 1.25m. But the market actually closed at $800m (a number verified by our clients, including major players and VCs).… So how big is the market today? We at IntelligenceNODE estimate that in the financial year 2013-14, the number of etail sales will be an even more astounding $2.23 bn. In spite of the rising inflation and the falling rupee, etail sales are pegged to grow at leaps and bounds.
…so what is the bigger picture? The current e-retail sales account for about 2% of overall retail sales. This contribution of etail sales is expected to grow to approximately 8% of the overall India retail market by 2015.
… So who are the movers and shakers? The very psyche of the Indian consumer is changing. We now have people who are ready to buy goods online instead of in a physical setting. Most Indian etailers already offer COD and prepaid cards are also available in the market. These initiatives make online shopping attractive to the interested but unsure consumer. These initiatives are being led by the top 3 players in the market Flipkart, Myntra, and Jabong who own 1/3 of the market, increasing their dominance from 1/4 last year.
…so are we still going to grow? The Internet revolution in India is definitely making its impact felt with more users realizing its potential and importance. The total Internet user base in India (inclusive of shared devices and mobile) is at 165+ million users, which roughly represent penetration levels of 14% of the population, leaving a huge opportunity for future growth.
This research is carried out by IntelligenceNODE- a Big Data analytics firm with operations in Mumbai, London and Sofia, servicing both traditional and digital commerce space, providing structured and unstructured data analytics.