BANGALORE, March 13, 2014 /PRNewswire/ --
Growth Story of the Indian E-commerce Market
In recent years, the e-commerce market in India is witnessing the mushrooming of many start-ups, resulting in intense competition and price wars to gain more market share. Although the e-tailing market in India has been a late starter, it is expected to witness steady growth over the next few years. According to Internet and Mobile Association of India, the e-commerce market in India is expected to grow to $200 billion by 2020. India's e-commerce market is projected to grow seven-fold to $22 billion in the next five years, as internet infrastructure improves further, making it easier for the country's nearly 200 million online e-citizens to shop on-the-go. Industry experts predict that online sales are expected to triple to INR 504 billion ($8.13 billion) over the next three years. See our coverage of the Indian e-commerce market by visiting
http://wallstanalyst.com/sense-x/market-mantra/1599-flipkart-zooms-on-the-indian-e-highway
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Brick-and-mortar is 'Passé'
The tech-savvy Indian consumers are switching from brick-and-mortar shopping to the click-and-order mode. Strapped for time, the flourishing middle-class consumer is looking at the internet for a variety of goods and services, all at the click of a mouse. Given this scenario, e-commerce companies are dishing out a wide variety of goods at rock-bottom prices to entice the price-conscious Indian consumer. Apart from the one-day delivery model, e-commerce companies are also switching to the marketplace model that fetches lower margins since they are split between the seller and the platform owner. While etailers do not own inventory nor take charge of the delivery, it could result in inconsistent user experiences in terms of product quality, deliveries, and returns. Meanwhile, major brands are looking to rectify the increasing tilt towards online shopping by offering longer warranty periods for products bought offline. Please access this report by following the link below:
http://wallstanalyst.com/sense-x/market-mantra
Global Players Compete with Indian Firms
Sensing the huge growth opportunity of the Indian e-commerce market, global companies are looking to set up shop in the country. They are looking at two options to gain entry into this market - by investing in existing Indian e-commerce companies or setting up subsidiaries in India. Either way, with no profits in sight, foreign players with deep pockets are looking to increase their consumer base in the near-term through extensive advertising and offering enticing deals to shoppers. Despite e-commerce companies increasing their sales, they are not able to add new users as quickly as they claim. So far, a total of 53 e-commerce companies in India had secured $853 million in venture capital funding over the past three years, a scenario that will drive many more companies to enter the fray.
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