Why Has Online Shopping Become So Popular In India
Standing at $16 billion, India’s ecommerce market grew 88% in 2013, as per an ASSOCHAM (Associated Chamber of Commerce) survey. In fact, the ecommerce industry rose from $2.5 billion in 2009 to $8.5 billion in 2012. The survey revealed that the nation’s online shopping market is projected to jump to $56 billion by the end of 2023. The rising online retail is a major driving force of such trends.
Are you one of those ardent online shoppers? Even if you are not, have you ever given a thought to what the future of online shopping in India would be? Do you know what the factors are that may contribute towards growth of this arena?
Factors Contributing to the Growth of Online Shopping in India
Why has a large section of the population in India shifted to buying things online? Why do they prefer online shopping to in-store shopping? Let us find out answers to these questions:
1. Convenience of Online Shopping: A major factor for the growth of online shopping in India is the convenience associated with it. In-store shopping requires too much time and effort; and as our lives get busier, this option becomes less appealing. Who would want to tackle the traffic and get to a store, only to discover that what you were looking for is not available? With ecommerce, you can find whatever you need with just a few clicks. You get these items delivered to your doorstep, so you don’t have to worry about carrying shopping bags up the stairs or into the house from your car. Relax at home and let the items come to you!
2. Higher Penetration of the Internet: According to the Cisco Visual Networking Index (VNI) Forecast, India would have the maximum growth in internet protocol (IP) traffic, which is estimated at 44% (compound annual growth rate) till 2017. India already has the third highest internet user base, after the US and China. The availability of high speed and cheaper internet in the country has made the ecommerce industry such a success. With higher internet penetration, online shopping in India would boom.
3. Rise in Mobility: The improving economic condition of the citizens of India has greatly affected the way people shop. With the advent of cheaper smartphones and enhanced features of the same, more people want these devices. With an increase in pay scales, more people can afford these devices. These two factors have resulted in online shopping in India becoming the latest craze. With their smartphones and tablets, people can connect to the internet when on the go. You can use your time travelling from work to home to order that book you have been dying to read or check out the latest in fashion available at your favourite online retailer.
4. Growth of Social Media: An Internet and Mobile Association of India (IAMAI) and Indian Market Research Bureau report says that the number of social media users in the urban parts of the country was 62 million as of December 2012. With online retailers advertising on Facebook and other social media sites, you get no prizes for guessing how social media promotes online shopping in India. With increased use of such platforms, the growth of online shopping is bound to happen.
5. Better Services: Whether it is safety of payment or the return policy being followed, online retailers have risen to the occasion and are offering the best in services to their customers.
With a better variety of products being available online than what offline stores can offer and with the healthy deals and discounts, the popularity of online shopping in India has grown significantly and this trend is likely to continue in the near future.