Study – Indian e-commerce market to reach $51 billion by 2017

Washington, D.C. – The recent spate of investments in Indian e-commerce ventures appear to be based on solid expectations. According to a new report from MarketResearch.com, the e-commerce market in India will reach $51 billion by 2017, growing at a CAGR (compound annual growth rate) of 43% during 2012-2017.



The e-commerce market in India is currently only at 1% of the market in China or the U.S., and a small slice of the country's total retail sales of approximately $400 billion. The market is just getting warmed up with big online brands establishing themselves.



There are several Indian e-commerce companies which are growing rapidly, changing the market and challenging both established local retailers and Western companies to gain a foothold in India. Flipkart, Snapdeal, and Infibeam are companies that have grown rapidly and gained a fan base in a short period of time.



Up until recently, internet-based purchases in India were primarily travel-related with consumers ordering train and plane tickets online. Physical goods were not ordered online, but during the past year, e-commerce companies selling electronics, clothes, and household items have surged in popularity and consumers are comfortable purchasing such items online.



MarketResearch.com advises that the Indian e-commerce market is different in many ways than markets in China or the U.S. For example, paying cash or credit upon delivery is a common practice in India, meaning consumers can evaluate the goods before paying. Online retailers in India also must think mobile first as fixed-line Internet connectivity is still extremely low and slow in the country.