The total turnover of the e-tailing business, including apparel and accessories online retailing, in India is likely to reach US$ 76 billion by 2021, says a study made by Technopak.
E-tailing—the business of retailing goods online through Internet—is estimated to be about US$ 0.6 billion in 2012, representing around 6 percent of India’s overall e-commerce business, the study titled ‘E-tailing in India: Unlocking the Potential’ shows.
According to the report, over the next nine years, e-tailing in India can grow by over 100 times to reach the US$ 76 billion mark by 2021, Times of India reported quoting PTI.
The phenomenal growth expectations are mainly based on rising Internet user base in the country, which is expected to grow to 180 million users, including the mobile Internet users, by 2020, the study says.
India’s e-commerce business, also encompassing other products and services like travel and financial services, totalled to US$ 10 billion last year, it added.
At present, the traditional brick and mortal stores serves 93 percent of total retail market in India, while corporatized brick and mortar retailers account for about seven percent share. E-tailing sales account for mere 0.1 percent.
According to the study, the brick and mortar stores would undergo some transformation, which would boost e-tailing’s share in overall organized retailing from existing 0.1 percent to 5.3 percent by 2021.
E-tailing would turn out to be a new viable option for corporate retailers to grow their retail sales.
The main reason for current disorderly growth is that the market-enabling factors and the creation of ecosystem for e-tailing would outpace the same for corporatized brick and mortar retail. The development would not only immensely benefit the Indian economy, but also the consumers at large, the study said.
Also, it added that with expanding Internet-user base across India, penetration in this space could be an opportunity for retailers.
It becomes difficult for retailers to tap customers in different parts of the country, but e-tailers face no problems here.
The study estimates that by 2020 the number of people owning a laptop or a personal computer would rise to 150 million in India.
Source:
http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=147225
