Professional Documents
Culture Documents
Channel Push
State of Online Retailing in India
Email: contact@channelpush.com
Channel Push
Online Services Pvt. Ltd.
unorganized but, the scene has been changing fast with emergence of big retail groups like FutureBazaar, Trent, Shoppers stop, Reliance Retail, Spencer etc. The brick and mortar model of organized retail is growing fast but, the online mode of retailing is pretty abysmal. ChannelPush in its series on Indian Online Retail will put the Indian Retail in perspective. In the two part series we will try and access what is going right and whats not for the Indian online retail. In the first part we will look at overall online retail market followed by in-depth analysis on different aspects of the market.
Email: contact@channelpush.com
Channel Push
Online Services Pvt. Ltd.
India is considered as one of the prominent IT hubs in the world but, all these have somehow not translated into positives in the retail space. Retail industry in India stands at $390 billion3 (refer fig1) and organized retail is fast catching up. Many of the big retailers have forayed into the online mode without much success.
Future of Indian Retail Industry 1000 900 800 700 in $bn 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012 2013 2014 2015
Online retail forms a meager 0.47% of the total retail market. This shows the plethora of opportunity for online retailing in India. The Indian ecommerce market at INR 92004 crore is heavily tilted towards travel sites. More than 75-80% of this market is constituted by travel portals like makemytrip, yatra etc. About 12% of the rest is contributed by online classifieds like matrimonial and job portals. Our area of focus is the remaining INR 1100+ crores market which is set to see tectonic growth given the right environment is built. This market is poised to grow at 30% per annum for next 5 years but, long term sustainability will depend on how must the market fabric changes. Market players have to be more proactive and innovative in their approach and offering to make serious inroads.
3
4
http://www.indiaretailbiz.com
http://www.pluggd.in/indian-travel-industry/india-business-report-e-commerce-industry-to-touch-9210crore-online-classifieds-820-online-travel-7000-crores-741/
Email: contact@channelpush.com
Channel Push
Online Services Pvt. Ltd.
Indian Retail Industry (Online Retailing) 3000 2500 2000 in $mn 1500 1000 500 0 2008 2009 2010 2011 2012 2013 2014 2015
http://www.techcrunch.com/2009/01/23/comscore-internet-population-passes-one-billion-top-15countries/
Email: contact@channelpush.com
Channel Push
Online Services Pvt. Ltd.
As stated above, most of the key issues are already known by the market participants. Currently the inability of the retail portals to address these problems is hindering the unraveling of the true potential. In the next part of this series we will try to address key areas of improvement for online retail portals. In the final part we will try to have a comparative analysis of leading online retail portals in India.
Email: contact@channelpush.com